Is AMD Stock a Bargain Buy Before Nvidia's Earnings Reveal?

Wednesday, 20 November 2024, 14:01

Advanced Micro Devices (AMD) stock presents a potential bargain buy ahead of Nvidia's upcoming earnings report. Despite previous struggles, AMD may benefit from Nvidia's strong performance. Investors are watching closely as AI continues to influence market dynamics in 2024.
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Is AMD Stock a Bargain Buy Before Nvidia's Earnings Reveal?

AMD's Position Before Nvidia's Earnings

Advanced Micro Devices (NASDAQ: AMD) is at a critical juncture as it prepares for Nvidia's (NASDAQ: NVDA) Q3 2025 earnings release on November 20. The market is buzzing with speculation on whether AMD stocks might surge if Nvidia reports strong results, potentially leading an AI-driven market rally.

Recent Performance of AMD

While AI hype dominated the early market narratives in 2024, AMD has faced significant headwinds. Following its 'Advancing AI 2024' event, excitement fizzled out, leading to an 11.55% drop in value over the past month. As of now, AMD shares are valued at $139.67 with a year-to-date return of only 0.78%.

Nvidia's Impact on Market Sentiment

Market sentiment towards Nvidia is strong, given its 207.08% YTD growth and dominant position in AI revenues. This creates a potential sympathy effect for AMD should Nvidia post impressive earnings. However, issues with AMD's diverse product offerings compared to Nvidia's focused AI strategy may limit its appeal.

Judging AMD's Future

AMD's ability to convert potential gains into tangible value boosts will depend significantly on its performance independent of Nvidia. As earnings seasons approach, all eyes will be on both companies as investors seek insights on where the AI and semiconductor markets are heading.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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