AMD stock price fell 15% from recent high, revenue growth but concerns about valuation

From NASDAQ MarketSite: 2024-04-05 13:10:00

Advanced Micro Devices (AMD) stock price has fallen 15% from its recent high of $227 per share, making it more attractive to investors interested in AI stocks. Despite this pullback, the company’s revenue grew 10% in the fourth quarter of 2023, with particular strength in its data center segment.

While AMD has shown growth in specific segments, its overall revenue dropped 4% in 2023, impacting its operating income and net income. The stock’s high price-to-earnings ratio (P/E) of around 350 raises concerns about its valuation compared to competitors like Intel and Qualcomm, signaling potential future challenges for investors.

Despite some challenges, the growth prospects in the AI chip market make AMD a compelling investment opportunity. With a robust forecast for revenue growth in 2024 and 2025 and a potential increase in net income, the stock’s recent pullback could present a buying opportunity for investors looking to capitalize on the company’s future growth potential.



Read more at NASDAQ MarketSite: Should Investors Buy the Correction in AMD Stock?