From Nasdaq: 2025-02-13 10:25:00

Advanced Micro Devices (AMD) partners with CEA to enhance AI computing, aiming for energy-efficient systems. AMD faces tough competition from NVIDIA in cloud-data center and AI chip markets. AMD’s expanding client base includes major players like Amazon, Google, and Microsoft. In 2024, AMD’s Data Center revenues surged to $3.9 billion.

Despite strong portfolio and partnerships, AMD faces competition from NVIDIA and market share concerns. AMD shares have declined by 37.8% in the past 12 months. NVIDIA shares, in contrast, have seen a nearly 80% increase. AMD aims to boost AI revenues with new products and partnerships in 2025.

AMD’s acquisitions, like ZT Systems and Silo AI, aim to strengthen its AI capabilities against NVIDIA. The company’s focus on large-scale deployment of data center accelerators is crucial for AI innovation. AMD’s 2025 earnings estimate indicates growth but has seen a slight downward trend.

AMD stock is currently overvalued with stretched valuation metrics. The stock is trading at a premium compared to the industry. AMD’s expanding portfolio and acquisitions are expected to drive growth, but near-term prospects are impacted by market competition and segment weaknesses.

AMD is trading below the 50-day and 200-day moving averages, signaling a bearish trend. Investors may consider waiting for a better entry point as AMD currently holds a Zacks Rank of #3 (Hold). AMD’s strategic acquisitions and expanding portfolio are expected to drive growth, but market competition remains a concern.



Read more at Nasdaq: AMD & CEA Team Up to Boost AI Computing: Buy or Hold AMD Stock?