This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• His investment thesis of Advanced Micro Devices (AMD). As the AI market develops, Mayur sees both AMD and Nvidia (NVDA) as well-positioned for success. However, because Nvidia is already a huge company and the industry leader, Mayur believes AMD has more room for growth and a compelling risk/reward ratio.

• Mayur believes one of the key advantages AMD has relative to Nvidia is in inference. Unlike AI training, which requires massive amounts of data (and where Nvidia enjoys a large lead), inference involves interpretation of the real world. In this nascent area of AI, Nvidia does not have a significant advantage over AMD. Inference could be an even bigger market than training over the next 5 years with the rise of real-world AI such as autonomous driving and robotics.

• After reviewing a recent history of AMD in relation to its competitors, as well as its recent stock performance, Mayur highlights two key revenue catalysts for 2025. He argues that if AMD can narrow the software gap with Nvidia, and if AI developers advance autonomous driving and humanoid robots for real-world AI applications, the size of the opportunity ahead is massive relative to AMD’s current market capitalization. Don’t miss this deep dive into the one of the companies on the cutting-edge of the AI revolution.

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

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