AMD(AMD) The Motley Fool·2025-01-30 15:15Core Viewpoint - Corporate America is entering a new quarterly earnings season, with a particular focus on companies leading in artificial intelligence (AI), especially Advanced Micro Devices (AMD) and its competition with Nvidia [1] Company Overview - AMD is set to release its fourth-quarter report for 2024 on February 4, 2024, and has emerged as a strong competitor to Nvidia in the data center GPU market, which is crucial for AI development [2] - AMD launched the MI300X data center GPU at the end of 2023 to capture Nvidia's 98% market share, securing major clients like Microsoft, Meta Platforms, and Oracle [2] - The company has also introduced the MI325X to compete with Nvidia's H200 and plans to ship the MI350 series later this year, which will offer 35 times more performance than the previous generation [3] Market Position and Revenue - AMD is the leading supplier of AI chips for personal computers, a segment where Nvidia does not compete, indicating a shift of AI workloads from data centers to personal devices for improved efficiency [4] - The adoption of new AI models from developers like DeepSeek could further accelerate this transition, with AMD expecting over 100 computing platforms featuring its Ryzen AI 300 Series chips to launch this year [5] - AMD's data center business generated a record 2 billion for 2024, which was later revised to 5.13 in 2025, resulting in a forward P/E ratio of 22.8, implying significant upside potential for the stock [12] Investment Outlook - Given AMD's substantial opportunities in both data centers and personal computing, the stock is considered a strong addition to investment portfolios with a long-term horizon of five years or more [13]