The past three years have been complicated for Advanced Micro Devices (NASDAQ: AMD) investors. Shares of the chipmaker have remained under pressure due to weakness in the personal computer (PC) market; at the same time, tough competition from rival Nvidia in the gaming and data center graphics cards segments has also dented investor confidence in the stock.

As it turns out, AMD shares have gained 44% over the past three years, underperforming the PHLX Semiconductor Sector index's 56% gains. However, it won't be surprising if the company's fortunes turn around over the next three years.

PC shipments fell almost 14% in 2023, according to IDC, following a 16.6% decline in 2022. However, the PC market has started to recover over the past few quarters. IDC reports that the PC market recorded 3% year-over-year growth in the second quarter, following a 1.5% jump in Q1. That recovery is likely to get stronger in the future thanks to the growing buzz around artificial intelligence (AI)-enabled PCs.

Continue reading

Source Fool.com