Advanced Micro Devices (NASDAQ: AMD) witnessed a robust uptick in its stock price during Friday’s trading, closing the session with a 5.3% gain according to data from S&P Global Market Intelligence.
Dell’s Exceptional Q4 Results Propel AI Stocks
Dell’s fourth-quarter report, exceeding expectations with non-GAAP earnings of $2.20 per share on $22.3 billion in sales, has ignited a surge in AI stock investments. The firm’s optimistic outlook on AI server products has catalyzed significant momentum, reflected in a 31.6% climb in Dell stock, spilling over to elevate the valuations of AI leaders like AMD, boasting a 37.5% increase in 2024 and a monumental 158% growth over the prior year.
What Lies Ahead for AMD Stock?
AMD’s stock has soared amidst fervor over its AI prospects, currently trading at 55.7 times this year’s projected earnings and 37 times the next year’s anticipated profits.
AMD PE Ratio (Forward) data by YCharts.
With a projected first-quarter sales figure of around $5.4 billion, indicating flat year-over-year growth, AMD is yet to witness a dramatic surge in sales and earnings from AI processor sales. However, market sentiment remains bullish, anticipating accelerated growth in the near future.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.
