Challenging the Goliath: Why AMD and Intel could Outperform Nvidia in 2024’s Chip Market

Author:  David Stryzewski, CEO, Sound Planning Group

Let me share some insights that I’ve been reflecting on recently. Nvidia had an extraordinary 2023, with its stock soaring by a whopping 238%. But you know what? I don’t believe that feat can be repeated this year.

Is that a bold statement? Absolutely! But let’s delve a little deeper. I’m looking at other chip stocks that are poised to outgain Nvidia in 2024. The ones that I’m particularly bullish about are AMD and Intel.

Why am I excited about AMD and Intel, you ask? Well, as we step into 2024, I see AI ushering us into a new renaissance. This industry is on a promising trajectory, and I believe AMD and Intel are well-positioned to ride this wave.

One of the significant challenges that Nvidia faced was the constraint in chip supply. As we all know, when supply is limited, demand skyrockets, pushing prices through the roof. This is where AMD and Intel come in. They’re planning to release chips that are comparable to Nvidia’s, but at a lower price point. Now, isn’t that exciting news for tech enthusiasts and investors alike?

But what does this mean in terms of figures? Let’s take a look at the PE ratios. Nvidia stands at 39, AMD at 52, and Intel at 50. These are forward-looking PE ratios, mind you. So, the question is, can AMD and Intel leverage their lower-priced chips to enhance their market position in 2024? I certainly think so!

Just a quick note on the broader market: The Dow Jones Industrial Average is at a record high, up by 27 points. What do I foresee for the year? I believe we’re heading towards a ‘melt-up’ in the first couple of quarters. However, this could potentially lead to a meltdown. I must admit, the upcoming election cycle doesn’t look pretty, but it’s definitely something to keep an eye on.

So there you have it, my friends. AMD and Intel are the chip stocks I’m keeping a close eye on in 2024. Keep these insights in mind as you make your financial decisions. Remember, the tech industry is dynamic, and staying informed is important.

David Stryzewski

CEO, Sound Planning Group

The information contained herein is general in nature. It does not take into account your particular investment objectives, financial situation, or needs. It is provided for illustrative or informational purposes only, and should not be construed as advice. Our advisors can meet with you to discuss your retirement plan.