We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates in embedded, client, data center, and gaming segments. It provides AI accelerators, GPUs as standalone devices, data processing units, embedded processors, and other products. The stock is up 4.26% in the last 5 trading days against the S&P 500’s 1.13% gains. However, this hardly matters to investors who are down 37% in a year despite other semiconductor stocks posting enormous gains due to AI spending.
The recent optimism stems from the fact that Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to gain microprocessor market share over rival Intel. The increasing PC and server demand means AMD’s market share grew from 21.6% to 22.1% QoQ. According to Citi’s historical data, Intel’s 67.4% market share is now the lowest since 2002.
Citi also cut Advanced Micro Devices, Inc. (NASDAQ:AMD)’s price target from $170 to $110 after the chipmaker announced its quarterly results. KeyBanc also lowered its price target from $150 to $140. AMD is showing weakness in the data center segment and the company also hasn’t provided guidance for AI revenue, which could stay flat for the first half of 2025. This lack of growth means the market could start giving the share a lower multiple, resulting in lower stock prices as the year progresses. Despite the recent bullish rally, the outlook doesn’t inspire confidence for Advanced Micro Devices, Inc. (NASDAQ:AMD).
Overall AMD ranks 9th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
