This Artificial Intelligence Challenger Is Down 49%. Is It Time to Buy the Dip on the Stock?
Wall Street has soured on this AI hardware challenger despite strong business results. Should smart investors be buying while others are fearful?
The stock market has swooned recently, but chip designer Advanced Micro Devices (NASDAQ: AMD) really took it on the chin. The S&P 500 (SNPINDEX: ^GSPC) index was reaching record prices in January. As of April 12, it trades 13% below that high point.
AMD, on the other hand, started struggling last summer. The stock has plunged 49% lower since July 10, 2024.
You'd think AMD would be soaring these days. Artificial intelligence (AI) is the hottest ticket in this market, driving the stocks of AI specialists to all-time highs, resulting in a few trillion-dollar market caps. AMD's Instinct processors are among the most cost-effective AI accelerator chips, and the Epyc range of server-grade CPUs is perfect for controlling those beastly number-crunchers. AMD's Epyc and Instinct chips are often found together in some of the world's most powerful supercomputers.