AMD stock has underperformed but may have potential if it demonstrates stronger earnings in 2025.

From Nasdaq: 2025-01-16 06:00:00

Advanced Micro Devices (NASDAQ: AMD) has underperformed as a tech stock, declining by 18% in 2024 despite being a top AI chip maker. With a 140% gain over five years, investors wonder if 2025 will bring a bounce-back or more trouble for AMD.

AMD’s growth in AI has lagged behind Nvidia, impacting its stock valuation. To rally, AMD must prove its chips can compete and show significant growth improvement.

While AMD may seem like a bargain buy compared to Nvidia, the latter’s growth and margins make it the better value option. AMD needs to demonstrate stronger earnings to attract growth investors.

Investors considering AMD should weigh the risks. While Nvidia is a safer bet, AMD could offer significant gains if it delivers on stronger earnings. It’s a more contrarian pick, but potential for growth exists if its AI chips prove successful.

For investment advice, our analyst team recommends the 10 best stocks to buy right now, including AMD. With potential for significant gains, AMD is a stock to watch for its growth potential in the tech sector.



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