Advanced Micro Devices Inc.'s (NASDAQ:AMD) stock remains resilient despite U.S. restrictions on semiconductor sales to China that bypass embargoes. The company's performance mirrors trends in the Invesco QQQ Trust, and its shares rose by 1.20% to $106.35 on Monday.
AMD's CEO, Lisa Su, recently stepped down from Cisco (NASDAQ:CSCO)'s board to avoid potential conflicts as AMD aims for supremacy in the networking and server industry. This move is backed by the company's EPYC offerings and advancements in genAI, which could pose a significant threat to Cisco.
Despite concerns regarding AMD's data center capabilities due to issues with the Xilinx (NASDAQ:XLNX) business and MI300 ramp deferrals, Toshiya Hari of Goldman Sachs expects a rebound in AMD's server market shares by 2023 and 2024. This recovery is anticipated to be driven by large cloud hyperscale companies resuming non-AI server build-outs.
However, there are warnings that Intel Corp (NASDAQ:INTC) may potentially narrow the gap from a performance or total cost of ownership perspective.
Meanwhile, other chip stocks including Intel and Nvidia (NASDAQ:NVDA) have also been drawing investor interest, despite potential regulatory challenges in China and Russia. Both companies have seen their stock value rise by nearly 2%, while Micron and Texas Instruments (NASDAQ:TXN) have also experienced gains.
According to Citi, Intel's aim to become a foundry system and AMD's future in chipmaking are attracting hedge fund interest. Despite AMD's endorsement, Micron Technology (NASDAQ:MU) continues to face negative perceptions, while Texas Instruments could be impacted by advancements in analog chips.
Nvidia's success in AI work is boosting its stock but may be offset by Biden Administration restrictions on Chinese market access. Samsung (KS:005930) is set to launch three-nanometer server chips into the market. Among these stocks, NVDA offers the most upside potential, while INTC presents minor downside risk.
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