AMD introduces new AI PC processors at CES 2025, but stock is overvalued

From Nasdaq: 2025-01-08 08:17:00

Zacks.com highlighted AMD’s new AI PC processors at CES 2025, with Ryzen AI Max Series for thin laptops, AI 300 Series for advanced computing, and AI 200 Series for everyday use. AMD also introduced Ryzen PRO versions for business applications and new gaming products for desktop, mobile, and handheld gaming.

AMD stock has underperformed due to weakness in the Embedded segment and competition from NVIDIA. Acquisitions like ZT Systems and Silo AI aim to bolster AMD’s AI capabilities. AMD’s partner base includes Microsoft, Oracle, DELL, and others, with recent collaborations driving HPC and AI advancements.

2025 earnings estimates for AMD show a downward trend, with a Zacks Consensus Estimate of $4.88 per share, down by 0.61% over the past 30 days. Revenue estimates stand at $32.27 billion, indicating 25.77% year-over-year growth. AMD stock is currently overvalued, trading at a premium compared to the industry.

Investors are advised to consider AMD’s expanding portfolio and acquisitions for long-term growth potential. However, the stock’s overvaluation and bearish trend raise concerns. With a Zacks Rank #3 (Hold), investors may want to wait for a better entry point. Check out Zacks’ top stock picks for potential opportunities.

The Zacks Analyst Blog highlights AMD, Dell Technology, NVIDIA, and Hewlett Packard in the list of stocks to watch. Experts have identified 7 elite stocks with the potential for early price pops, offering investors valuable insights for the next 30 days. Download the free report for the latest recommendations from Zacks Investment Research.



Read more at Nasdaq: The Zacks Analyst Blog Highlights AMD, Dell Technology, NVIDIA and Hewlett Packard