The new year is just around the corner, and investors are taking advantage of the holiday break to review their portfolios and look for opportunities in 2025. Artificial intelligence (AI) continues to be a dominant theme in the stock market, with tech giants expected to spend record amounts on developing AI technology.
Two companies that could benefit from this trend are Advanced Micro Devices (AMD) and Micron Technology (MU). While AMD’s stock has seen some volatility, its data center revenue soared 122% year-over-year to a record $3.5 billion in the recent fiscal third quarter. The company’s MI350 series of AI GPUs is expected to compete with Nvidia’s new Blackwell-based GPUs, which are 30 times more powerful.
Micron Technology is also poised for growth, with its HBM3E memory chips delivering 50% more capacity while consuming 30% less energy than competing hardware. The company has already generated $4.4 billion in data center revenue in the recent fiscal first quarter, a 400% increase from last year. With the market for data center HBM expected to grow to $100 billion by 2030, Micron is sitting on a significant financial opportunity.
Both AMD and Micron have attractive valuations compared to their peers. AMD’s stock trades at a forward P/E ratio of just 10.1, while Micron’s valuation is even more compelling at 10.1. With record tech spending expected in 2025, these companies could be poised for significant gains.
Investors who missed out on the AI chip trend in the past may want to consider buying now before it’s too late. According to The Motley Fool, investing $1,000 in certain stocks at the right time can result in huge returns. However, this is not a guarantee and should be done with caution.
Source: https://finance.yahoo.com/news/2-super-semiconductor-stocks-besides-085600274.html