AMD stock has dropped 40% in the past year despite strong revenue growth, but remains a buy.

From Nasdaq: 2025-03-24 21:15:00

Shares of Advanced Micro Devices (AMD) have dropped 40% in the past year, despite strong revenue growth from artificial intelligence (AI). The company is second in GPU market share, trailing Nvidia significantly. AMD’s CPUs have been successful, with data center revenue surging 69% year over year to $3.9 billion last quarter.

Investors are eyeing AMD for its potential growth, with a forward P/E ratio of 22.5 times analyst estimates for 2025. The company projects a 30% revenue increase in the first quarter, with analysts estimating a 23% sales growth for the year. AMD’s strong performance in data centers and CPUs make it an attractive buy.

While AMD may not surpass Nvidia in GPU market share, it remains a solid investment with growth potential. The stock’s valuation and market opportunities make it a buy at current levels. Don’t expect AMD to be the next Nvidia, but it’s a strong contender in the semiconductor market.



Read more at Nasdaq: Is Advanced Micro Devices Stock a Buy?