Will AMD Stock Win the AI Chip War?

AMD, under Su’s leadership, has grown rapidly over the past few years and now has a market valuation of nearly $200 billion, more than archrival Intel. $Intel (INTC.US)$

To be sure, AMD is not a cheap stock. It trades at about 36 times 2024 earnings forecasts following a nearly 90% surge this year. But AMD actually trades at a slight discount to Nvidia’s P/E of more than 40 times fiscal 2024 earnings projections. And AMD arguably deserves its lofty valuation given that analysts are predicting that earnings will grow 40% in 2024. That follows average annual earnings increases of nearly 65% over the past five years. $Advanced Micro Devices (AMD.US)$ $NVIDIA (NVDA.US)$