AMD stock is down 49% due to weak AI contract wins, but may be undervalued.

From Nasdaq: 2025-04-14 04:19:00

The stock market took a hit, with AMD (NASDAQ: AMD) down 49% since July 10, 2024. Despite AI’s market boom, AMD’s stock price dropped, leading to questions about whether it’s a good buy. Analysts point to weak contract wins in AI. However, AMD’s stock seems undervalued, trading at 15 times forward earnings estimates and 5.9 times training sales. The company’s AI momentum is strong, as CEO Lisa Su highlighted its performance in the top 500 supercomputer list. AMD’s stock could be a good pick for a price-sensitive AI portfolio, but market instability may affect its future performance. The Motley Fool Stock Advisor team didn’t include AMD in their top 10 stocks list, citing potential for monster returns with other picks. Consider a dollar-cost averaging plan or buying in thirds strategy to balance out market volatility when investing in AMD.



Read more at Nasdaq: This Artificial Intelligence Challenger Is Down 49%. Is It Time to Buy the Dip on the Stock?