Rising to the Challenge: Watch This Aspiring "Magnificent Seven" Stock in 2024

For over a year, the "Magnificent Seven" equities have defined market-defining growth plays. These seven megacaps have gained 85% in 52 weeks, led by Nvidia (NASDAQ: NVDA), a chipmaker that accelerates AI processing.

The "Magnificent Seven" stock grouping can alter at any time. Some members aren't contributing and may be replaced. Tesla plunged 11% as Apple rose 10%. Additionally, a few equities are rising from below. Advanced Micro Devices (NASDAQ: AMD) may soon join the "Magnificent Seven" with Apple or Tesla. Why AMD should be in the 2024 "Magnificent Seven" conversation.

Changes in AI supremacy Nvidia may be the AI-chip market leader, but that's not assured. Some of the world's largest and most powerful supercomputers are teaching the next generation of cutting-edge AI. Five of the 10 most powerful supercomputers use Nvidia's A100 or H100 accelerators.

AMD's Instinct MI250X accelerator chips power two top-10 systems, including the leader. Thus, system builders seeking exceptional performance don't have to use Nvidia.

Both businesses are releasing new AI accelerator lines, so their names should appear in the upcoming top supercomputer rankings. So yet, only Nvidia and AMD have tested the H200 and Instinct MI300X accelerators, and they blame each other for handpicking favorable benchmarks or specifications. Nothing new, right?

AMD has equivalent raw performance, which might be a huge benefit if its price is lower. Each solution's power needs must be considered. AI-building users of these muscular systems may choose hardware based on predicted utility expenses, cooling systems, and other real-world practicalities. Anyone may win performance comparisons by throwing more technology at the task. AMD has fought hard on such conditions before. I'm excited to see Nvidia's H200 and AMD's MI300X accelerator power.

AMD's determined AI accelerator leadership bid So AMD isn't passively letting Nvidia win every AI-training system deal. AMD has more and faster memory, while Nvidia's solutions are better at number crunching, but both have valid use cases. Again, I'm excited for 2024's AI accelerator enhancements to find end-market consumers

AMD is several steps behind right now. The company sold about $400 million in data center GPUs in Q4 2023. Nvidia's data center revenues quintupled to $18.4 billion in the same reporting period, although AI accelerator sales are not reported.

AMD is behind Nvidia, although it has a powerful AI accelerator design and uses the same third-party manufacturing solutions. If AMD overtakes Nvidia this year, perhaps the "Magnificent Seven" will include the runner-up AI chip expert instead of Tesla.

AMD's daring challenge is why I'm not purchasing Nvidia shares. I recently cashed in Nvidia earnings and bought in a cheap growth stock. Although AMD's price is too high for me, the business is a real AI competitor to Nvidia.

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