Should You Buy the Dip in AMD Stock?
AMD stock is trading at a 52-week low.
For the most part, chip stocks have fared well over the last couple of years. The main tailwind fueling semiconductor stocks to new highs is, of course, rising interest in artificial intelligence (AI).
One of the core pillars of the AI movement is data centers, which are equipped with chipsets known as graphics processing units (GPUs). GPUs are important pieces of hardware for generative AI development. Companies such as Nvidia (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing, and Broadcom have all witnessed significant climbs in market value thanks to their respective roles in the GPU realm.
One name in the chip industry that hasn't captivated investors, however, is Advanced Micro Devices (NASDAQ: AMD). Over the last 12 months, shares of AMD have fallen by 44%. And as of this writing (Feb. 28), the stock is trading at a 52-week low.
