Advanced Micro Devices (NASDAQ:AMD) is a premier chip maker that was the darling of the market in early 2023. This might not be the case now, but don’t ignore AMD stock. There could be a breakout coming, especially since AMD is a strong contender among AI chip suppliers.
Of course, AMD’s hardware has a variety of applications and it’s among the world’s top developers supercomputer components, but we’ll discuss a specific group of computers that might gain traction in 2024. A potential resurgence of these out-of-favor computers would certainly benefit AMD. In anticipation of this, investors can position their portfolios accordingly.
Why December Will Be Pivotal for AMD Stock
Get ready to mark your calendar. There’s a day coming in early December that could mark a watershed moment for AMD stock.
No, it’s not an earnings report. That already came and went, and by the way, AMD posted another EPS beat in 2023’s third quarter.
The big day is coming on Dec. 6. That’s when AMD will present an “in-person and livestreamed event” called “Advancing AI.” AMD will have a prime opportunity to showcase critical AI applications of the company’s famous MI300 processor.
AMD CEO Lisa Su will be at the event, of course. Surely, Su will have something to say as AMD introduces its family of Instinct MI300 data center GPU accelerators.
Naturally, AMD’s next generation of AI-compatible processors will be the main topic of discussion at “Advancing AI.” AMD is known to up the ante with best-in-class hardware updates, so Dec. 6 might be as pivotal – and as bullish – for AMD stock as any earnings event this year.
A PC Market Revival Could Give AMD a Revenue Boost
It’s no secret that the personal computer market struggled in 2022 and, to a lesser extent, in 2023. The story may change next year, however.
Not long ago, HP (NYSE:HPQ) released its results for the company’s fiscal fourth quarter, which ended in October. Per Barron’s, HP CEO Enrique Lores “expects the PC market to return to growth in 2024.”
Lores expects the debut of AI-enhanced PCs to occur in the summer of 2024. In addition, the HP CEO stated that his company will build AI-enhanced PCs with processors from AMD, among other hardware manufacturers.
It’s possible, though not guaranteed, that the popularity of AI will precipitate a resurgence in PC sales next year. Rakesh Anigundi, a director at AMD, declared that the AI trend “makes PCs exciting again.” Perhaps the excitement could translate to a boost in PC-segment revenue for AMD in the coming quarters.
AMD Stock: Consider a Small Share Position
Certainly, there’s no guarantee that the PC market will recover next year, even with help from the AI trend, but December could be a breakthrough month for AMD.
Investors can choose to take part in AMD’s growth in 2024 without over-leveraging their portfolios. Thus, AMD stock gets a solid “B” grade and if you’re ready, feel free to purchase a few shares as the coming months should be exciting and, hopefully, profitable as well.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
