AMD: Why I Doubled My Position After DeepSeek Sell-Off

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AMD: Why I Doubled My Position After DeepSeek Sell-Off

AMD shares recently hit a one-year low following news about DeepSeek's AI chat assistant. Despite this setback, confidence remains in the strong demand for AMD's AI products projected for 2025. Doubling the AMD position reflects a belief in the company's growth in the AI accelerator market, particularly with increasing Data Center revenues.

AMD's strategic investments in AI are yielding significant revenue growth, with the stock currently trading at a near-50% discount to its historical P/E ratio. The impact of DeepSeek on the market is acknowledged, yet the outlook for AMD's AI accelerators remains positive, suggesting that the shares are attractively priced despite recent downgrades.

• AMD shares fell due to DeepSeek's AI chat assistant announcement.

• Strong demand for AMD's AI products is expected in 2025.

Key AI Terms Mentioned in this Article

AI Accelerator

AI accelerators are specialized hardware designed to enhance AI processing capabilities, crucial for AMD's growth.

Data Center

Data centers are facilities used to house computer systems and associated components, where AMD is seeing revenue growth.

P/E Ratio

The price-to-earnings ratio is a valuation metric, indicating AMD's stock is trading at a significant discount.

Companies Mentioned in this Article

AMD

AMD develops computer processors and related technologies, focusing on AI and Data Center solutions.

DeepSeek

DeepSeek is an AI start-up known for its chat assistant, which influenced market dynamics affecting AMD.

Nvidia

Nvidia is a leading AI hardware company, whose stock also declined alongside AMD due to market reactions.

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