Marjorie Taylor Greene has purchased shares in Advanced Micro Devices Inc (NASDAQ:AMD), a key player in the semiconductor industry.
The outgoing Biden administration is planning to impose new restrictions on semiconductor exports to China, potentially impacting AMD and its competitors.
AMD offers a more attractive investment opportunity compared to Nvidia, trading at 28 times forward earnings and positioned to benefit from AI growth.
On November 25, 2024, Marjorie Taylor Greene made a purchase of shares in Advanced Micro Devices Inc (NASDAQ:AMD). AMD is a prominent player in the semiconductor industry, competing with companies like Nvidia. The company is known for its microprocessors and graphics cards, which are integral to various computing applications.
The outgoing Biden administration plans to impose new restrictions on the export of semiconductor equipment and AI microchips to China. This move is expected to affect global chipmakers, including AMD and Nvidia, as highlighted by Proactive Investors. However, sources suggest these measures will be less stringent than initially proposed, potentially easing the impact on these companies.
Nvidia has seen a significant 180% increase in its stock this year, reaching a market cap of nearly $3.5 trillion. Despite this growth, Nvidia’s high valuation of approximately 48 times the consensus FY2025 earnings may limit future gains. In contrast, AMD presents a more attractive investment opportunity, trading at 28 times forward earnings. This positions AMD to benefit from AI growth while offering better value to investors.
AMD’s stock is currently experiencing a bearish trend, with its price at $142.68, below its five-day, 20-day, and 50-day EMAs. The 20-day SMA is at $141.97, and the 50-day SMA is at $153.29, indicating declining momentum. The stock is also trading below its 200-day SMA of $160.23, suggesting long-term bearish pressure.
Despite these challenges, there is potential for a short-term rebound. The eight-day SMA at $138.81 offers a slight bullish indication. However, the RSI of 46.42 remains neutral, indicating the stock is neither oversold nor overbought. Currently, AMD’s stock price is $136.24, reflecting a decrease of 1.48, or approximately -1.07%.
