AMD stock is down 51% from its peak, but company has strong data center business.

From Nasdaq: 2025-03-12 04:58:00

The stock market is experiencing a sell-off, with AMD stock down 51% from its peak. AMD’s data center business had a record year, and the company is aiming to catch up to Nvidia in AI development with its latest GPUs. Nvidia continues to dominate the AI data center market with its new Blackwell-based GB200 GPU.

AMD is shipping samples of its MI350 GPU to customers soon, but Nvidia already has a head start with its GB200 GPUs. The MI350, based on a new CDNA 4 architecture, could potentially outperform Nvidia’s GB200, allowing for faster data processing and energy efficiency. Tech giants plan to spend over $300 billion on data center infrastructure in 2025.

AMD’s data center revenue nearly doubled in 2024, but it still lags behind Nvidia significantly. Despite growth in its client segment and expectations for gaming and embedded segments, AMD’s stock fell due to weaker performances in other areas. The recent release of the Radeon 9070 gaming GPU could boost AMD’s gaming business.

AMD stock is trading at an attractive level with a lower P/E ratio compared to Nvidia. Wall Street estimates suggest potential EPS growth for AMD, making it a good value investment. With a strong data center business and growth expectations in other segments, investing in AMD at its current valuation could be a wise decision.

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Read more at Nasdaq: Should You Buy Advanced Micro Devices (AMD) Stock After Its 51% Drop?