Advanced Micro Devices (NASDAQ: AMD) has become a favorite on Wall Street this year, with its stock up about 72% since Jan. 1. Investors have grown bullish over the company's prospects in artificial intelligence (AI). The market hit $137 billion in 2022 and is projected to expand at a compound annual growth rate of 37% through 2030. Meanwhile, AMD's position as a leading chipmaker suggests it could play a crucial role in that growth.
However, the AI market has attracted countless new tech companies striving to profit from its potential. For now, AMD's biggest competitor in AI chips is Nvidia, but Amazon and Intel have projects in the works that could make it challenging for the company to expand in the space.
As a result, before making a significant investment in AMD's stock, it's wise to understand the positives and negatives of the company's prospects.
Source Fool.com