AMD (NASDAQ: AMD) stock has been in rally mode again. It has less to do with the Q3 2023 earnings update and more to do with AMD management palling around with other high-tech executives touting the merits of the upcoming MI300X chip system for AI. AMD stock has now more than doubled in value in 2023 in an AI-fueled rally, and it's homing back in on all-time highs after the MI300X event in early December.

But like all semiconductor stocks laying the groundwork for the AI movement, AMD trades for a high premium. Is it still a buy for 2024?

The current hype surrounding generative AI infrastructure really got ignited by Nvidia and its explosive data center revenue earlier this year. At this point, the market for AI training -- where a company's data is used to customize an algorithm that can create new digital content on command -- is dominated by Nvidia. At the AI event on Dec. 6, AMD CEO Lisa Su claimed the MI300X has reached performance parity with comparable Nvidia systems in AI training.

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Source Fool.com