AMD Jumped Today — Is the Artificial Intelligence (AI) Stock a Buy?

From Nasdaq: 2025-04-23 18:16:00

Advanced Micro Devices (NASDAQ: AMD) stock saw a 4.9% increase, closing higher amid a bullish market. The company’s shares rose as much as 8.7% during the day’s trading. Despite recent gains, AMD stock remains down 25% in 2025 and 57% from its high.

AMD stock surged today on optimism surrounding potential de-escalation in the U.S.-China trade war. However, the company faces challenges, including a 25% decline in 2025 and a 57% drop from its high. Investors are cautious about AMD’s growth outlook in the AI market amidst trade tensions and product inventory issues.

Investors are questioning whether now is the right time to invest in AMD stock. With the company trading at 20 times the average analyst target for this year’s earnings, uncertainties remain due to trade and tariff issues. Despite upcoming product launches, AMD faces stiff competition in the AI processor market.

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