On June 3, semiconductor giant Broadcom posted extremely strong operating results for its fiscal second quarter, but management’s sales guidance came in lighter than Wall Street’s expectations.
This sparked a sell-off of practically every semiconductor stock, but those with high exposure to the artificial intelligence (AI) revolution were particularly hard hit
Advanced Micro Devices (NASDAQ: AMD) is one of the world’s top suppliers of graphics processing units (GPUs) for data centers, which are the main chips used to handle artificial intelligence training and inference workloads, and its stock is down 10% from last week’s all-time high as I write this. However, AMD is still sitting on an eye-popping 12-month return of 300%. So could the recent dip be a buying opportunity, or have investors missed the boat?
AMD is preparing to ship its best AI chips so far AMD entered the data center GPU race in 2023 with the MI300X. It was designed to compete with Nvidia’s H100, which was the leading-edge product at the time. AMD has since launched several new generations, including the MI350 and MI400 series, each more powerful than the last, and they have attracted major customers such as OpenAI, Oracle, and Meta Platforms.