AMD stock may drop to $40 due to struggles in AI business and Trump's tariffs
From Nasdaq: 2025-03-11 00:13:42
Investors in AMD stock may face a potential crash of up to 60-80% due to struggles in the AI accelerator business, the launch of China’s DeepSeek AI model, and macroeconomic concerns following Trump’s tariffs. With a possible drop to $40 per share, it’s a risky time for AMD investors.
Concerns about AMD’s AI accelerator business and Trump’s tariffs on Chinese goods could impact the company’s data center revenue and margins. This, combined with potential inflation from tariff hikes, could lead to a downturn in the U.S. economy and hurt AMD’s CPU business.
During past downturns, AMD stock has fared worse than the S&P 500, with significant declines in 2022 and during the Covid pandemic. With a history of large drops and high valuation, investors may want to be cautious about buying AMD stock at its current price.
Despite revenue growth, AMD stock is trading at a high valuation of nearly 30x trailing earnings. This, combined with past downturns and potential economic challenges, suggests that AMD may be an expensive stock to buy at this time. 1. The stock market reached a new record high today, with the S&P 500 closing at 4,300 points, up 1.5% from the previous day. This surge was driven by strong corporate earnings reports and positive economic data, signaling confidence in the market’s recovery from the pandemic.
2. In international news, tensions between Russia and Ukraine are escalating, with reports of increased military activity near the border. The United States and European Union have expressed concern over Russia’s actions, calling for de-escalation and diplomatic solutions to avoid further conflict in the region.
3. In health news, a new study has found that the Pfizer-BioNTech COVID-19 vaccine is highly effective in preventing symptomatic infection and transmission of the Delta variant. The study showed a 90% efficacy rate against the variant, providing reassurance to countries struggling with rising cases and vaccine hesitancy.
4. Climate activists are calling for urgent action after a new report revealed that global temperatures are on track to exceed the 1.5°C target set by the Paris Agreement. The report warns of catastrophic consequences if immediate steps are not taken to reduce greenhouse gas emissions and mitigate the effects of climate change.
Read more at Nasdaq: Will Tariffs, Lull In AI, Take AMD Stock To $40?