Can AMD Stock Beat NVIDIA Corporation?
Advanced Micro Devices, Inc. (NASDAQ:AMD) took a major hit on Thursday, but there may not be anything wrong with AMD stock specifically. Semiconductor stocks slipped across the board.
Some analysts consider the movement a normal sector rotation, where money flows from one area of the stock market to another. There are tons of reasons why a sector rotation can happen, but the effects are often short-lived. Stocks with real value find their footing in due time.
That being said, the brief drought can present an investing opportunity for anyone bullish on virtual reality stocks. While some of the older microprocessor companies, like Intel Corporation (NASDAQ:INTC), are tied to personal computer (PC) sales, there are a new class of semiconductors stocks.
This new generation is composed of stocks like AMD, NVIDIA Corporation (NASDAQ:NVDA), and QUALCOMM, Inc. (NASDAQ:QCOM).
NVIDIA is doing great work on driverless tech, and QUALCOMM is pushing the boundaries of what smartphones can do. But many analysts think AMD stock has an edge on virtual reality (VR). The company is certainly at the forefront of the VR revolution, there’s no denying that.
Just look at the upcoming release of Assassin’s Creed.
It is a blockbuster movie made by 21st Century Fox and based on a video game series of the same name. The expected turnout is huge, so AMD partnered with Alienware Corporation to create a VR experience based on the movie. (Source: “AMD And Alienware Team Up With The New Film “ASSASSIN’S CREED” To Create A Movie Virtual Reality Experience,” Yahoo! Finance, December 1, 2016.)
“The ‘Assassin’s Creed’ Movie VR Experience is a thrilling piece of virtual reality that will excite aficionados of the game, fans of the movie and newcomers alike,” said AMD Vice President Roy Taylor. “We are delighted to team up with Fox and are excited to demonstrate how world-class VR can be produced and experienced on AMD technology.”
Kiosks will be located at AMC movie theaters in San Francisco, Los Angeles, Austin, and New York City. Either before or after the movie, customers can strap on an “Oculus Rift” and experience the Assassin’s Creed universe in a completely different way.
AMD stock investors hope these kinds of events can stimulate demand for virtual reality devices. The concept is still new, still unfamiliar. Consumers haven’t yet digested the potential of VR, mainly because it is an experienced phenomenon. Reading about it is not enough.
Giving them a chance to try VR for themselves is helpful, at the very least. If it can move VR towards its eventual tipping point, AMD stock could soar along with device sales.