Two Notable Growth Stocks Worth Purchasing Immediately with a $300 Budget
Looking to invest in AI's future? Here are two growth stocks that could pay off big time:
1. Advanced Micro Devices (AMD)
Advanced Micro Devices, or AMD, is a great bet for those seeking to profit from AI's expansion. This tech giant stands to benefit from the expansion of data centers, which are crucial for powering AI computations. AMD sees a massive opportunity worth $500 billion in its data center chip business, and right now, you can buy shares at an attractive value.
The stock has taken a hit, currently trading 45% off its high, despite a stellar 122% year-over-year increase in data center revenue during Q3. AMD's smaller business units, such as industrial devices and video game consoles, have faltered due to macroeconomic challenges. However, the demand for computing power will eventually recoup, providing an additional boost to the company's growth trajectory.
Advanced Micro Devices has a competitive edge in the data center GPU market, thanks to high memory capacity. This feature will be crucial as AI transitions into the inferencing phase, enabling real-time data processing and independent computing. Analysts expect AMD's earnings to skyrocket, yet its shares trade at a market-average forward price-to-earnings multiple of 25. A no-brainer buy, say they!
2. Lam Research (LRCX)
If you're searching for another stellar AI stock, Lam Research is worth considering. As a leading semiconductor equipment supplier, Lam Research is an integral part of the AI gold rush. Its expertise allows chip manufacturers to churn out faster, smaller processors, earning impressive profit margins.
Lam Research's earnings have grown by more than 20% annually over the last decade. The company's strong financials have weathered various market challenges, and with AI requiring more advanced chip manufacturing, Lam Research has a promising future.
The current valuation of Lam Research's shares is 23 times this year's earnings estimate. Given the company's anticipated 16% annualized earnings growth in the coming years, this valuation appears highly attractive.
Advanced Micro Devices and Lam Research insights learned from enrichment data:
Advanced Micro Devices (AMD)
AMD's ongoing success is grounded in its strong data center AI business, which is projected to generate billions in revenue annually in the coming years. The company is proudly pushing forward into the AI future, with notable launches like their MI350 series GPU accelerators. Analysts unanimously express their optimism, predicting robust revenue and earnings growth through 2025.
Lam Research (LRCX)
Lam Research matches AMD's growth prospects, driven by the booming demand for advanced semiconductors. Despite macroeconomic challenges and fears around the impact of new AI models on the semiconductor industry, analysts remain confident. Lam's robust financial health, including strong profit margins, will help it capitalize on the AI semiconductor demand in the coming years.
In the realm of finance, investing in Advanced Micro Devices (AMD) could be a lucrative decision for those interested in AI's growth. The company's significant opportunity in the data center chip business and attractive share value make it an appealing choice.
For those seeking another finance opportunity in the AI sector, Lam Research is a worthwhile consideration. As a semiconductor equipment supplier, Lam Research plays a crucial role in powering AI's advancements, with its profit margins growing impressively over the past decade.
