Advanced Micro Devices (NASDAQ: AMD) rallied 23% in the month of November, according to data from S&P Global Market Intelligence. In addition, management gave a strong outlook for its data center segment and specifically sales of its MI300 accelerator for AI applications, which is in its first stages of commercial ramp-up. In its third quarter, AMD grew revenue 4.1%, with adjusted (non-GAAP) earnings per share of $0.70, beating analyst expectations.
Advanced Micro Devices' (NASDAQ: AMD) turnaround over the past six years couldn't have gone any better. A combination of good products, industry-leading manufacturing technology from Taiwan Semiconductor Manufacturing Company (TSMC), and delays and missteps by Intel (NASDAQ: INTC) has made AMD competitive. AMD is now worth more than Intel, a situation that would have been unthinkable a few years ago.
Chip stocks captivated Wall Street this year as the artificial intelligence (AI) market has exploded. Chipmakers like Advanced Micro Devices (NASDAQ: AMD) and Nvidia are well positioned to profit substantially from AI over the long term, with bullish investors sending their stocks soaring 87% and 220%, respectively, since Jan. 1. Nvidia has taken center stage in AI since the start of 2023, getting a head start over its competitors and snapping up a majority-market share.