Time to hop off the AMD train?
The competition for AI chip contracts is more intense than it appears. Nvidia $NVIDIA(NVDA.US$ is currently in the spotlight, but AMD $Advanced Micro Devices(AMD.US$is also actively pursuing this opportunity and they sometimes collaborate as partners in AI projects instead of being direct rivals.
Over the past 5 years, AMD has experienced significant growth, with its stock price increasing by over 500%. Their total revenue is growing at a rate of 35.7% year-on-year, and their operating income per share is growing steadily at an average rate of 55.9% per year. This shows that the company is performing well in terms of business.
However, due to the recent hype around AI, AMD's stock price has soared, leading to a very high price-to-earnings (PE) ratio of 602 times. This means that investors who buy the stock at this point are taking a big risk. It's thus better to monitor the upcoming earnings before making any form of investment decisions.
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Stonkslanger : Time to hop on this
dwarrior : Time to buy puts? Lol
Cherr88 : Not time to buy call?