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AMD Revenue Rockets 50%: 2 Undervalued Chip Stocks With Long-Term EPS Growth (NASDAQ:AMD)
Seeking Alpha • • general
Key Points:
- AMD reported a 50% increase in revenue, driven by a 107% rise in data center sales, with Q3 revenue guidance exceeding consensus expectations, highlighting strong demand fueled by AI growth.
- Early earnings from major tech companies like Amazon, Microsoft, and SpaceX have reinforced the bullish outlook on AI, signaling accelerated AI spending and increased capital expenditures benefiting semiconductor suppliers.
- SpaceX's AI-related revenue surged 247% year-over-year, with management noting AI demand significantly outpaces memory supply, creating a favorable environment for semiconductor companies.
- The recent selloff in chip stocks, combined with strong AI-driven growth narratives, presents a buying opportunity in semiconductor companies with solid fundamentals and long-term earnings growth potential.
- Seeking Alpha's quantitative analysis has identified two additional undervalued chip stocks with potential EPS growth exceeding 100%, alongside AMD, offering promising investment prospects in the semiconductor sector.
