We recently compiled a list of the 15 AI News Updates Worthy of Investor Attention. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other AI stocks that are worthy of investor attention.
The advent of artificial intelligence has shaken up the Search business on the internet, a domain where Google has long reigned supreme. With AI models from startups like OpenAI, companies are offering natural language search capabilities to users that are cutting away Google’s dominance in the Search market. Latest reports from news publication Bloomberg suggest that Google now faces added pressure with authorities in the US reportedly pushing the firm to spin off its Chrome browser business. The report further claims that authorities are also planning to recommend to a federal judge that Google face antitrust requirements related to AI and its Android mobile operating system.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
The measures are a byproduct of a multilayer case that the Justice Department has built against Google. The government won the first round in the case earlier this year, which sought to prove that the tech giant has a web search monopoly in the US. In the ruling on this case, federal judge Amit Mehta ruled that Google broke antitrust laws in both online search and search text ads markets. Per the Justice Department, the case against Chrome stems from the fact that the browser is a key access point through which many people use Google Search. Chrome controls about 61% of the browser market in the US, according to web traffic service StatCounter.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. On November 18, Barclays analyst Tom O’Malley discussed AMD as part of a larger note on the chip market, noting that orders for AMD’s MI300 and 325 AI accelerators recently up-ticked for the fourth quarter, but there is the expected sequential decline in the first quarter. He also noted that early signs for AMD’s Xilinx unit appear up double-digits year-over-year, but may be weaker to start the year.
Overall AMD ranks 8th on our list of the AI stocks that are worthy of investor attention. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.