From Yahoo Finance: 2025-04-16 09:37:00

In a recent list of the 13 Best NASDAQ Stocks to Buy in 2025, Advanced Micro Devices Inc. (NASDAQ:AMD) is under the spotlight for its performance compared to other stocks. Wedbush analyst Dan Ives warned of a potential 15-20% demand reduction due to current tariffs, urging investors to focus on tariff negotiations and impacts.

Tech companies facing high tariff increases may pass costs to consumers, leading to margin erosion. Ives suggests investors consider companies with long-term potential for normalized earnings in 2025 and 2026. Even defense contractors face risks from tariffs due to significant foreign components in hardware.

Advanced Micro Devices Inc. (NASDAQ:AMD) operates in four segments, with the data center segment contributing 50% of total revenue in 2024. Despite stock rating downgrades, the company showed strong revenue growth, particularly in the data center AI business. The launch of MI400 series in 2026 indicates further growth potential.

According to Insider Monkey’s methodology, AMD ranks 13th on the list of best NASDAQ stocks for 2025. While acknowledging AMD’s growth potential, the focus remains on AI stocks for high returns in a shorter timeframe. Investors can explore undervalued AI stocks poised for gains, offering a promising alternative to AMD with low earnings multiples.

Read more: Is Advanced Micro Devices Inc. (NASDAQ:AMD) the Best NASDAQ Stock to Buy So Far in 2025?