From Nasdaq: 2025-05-09 03:17:00

Advanced Micro Devices (NASDAQ:AMD) stock is priced around $99, seen as relatively expensive. Q1 revenue hit $7.44 billion, up 36%, with earnings reaching $0.96 per share. Strong data center sales and new chip releases expected to boost sales. However, U.S. restrictions on sales to China may impact revenue by $1.5 billion.

AMD’s valuation compared to the S&P 500 shows it’s expensive. Price-to-sales ratio is 6.0, P/FCF ratio is 51.3, and P/E ratio is 95.0. Revenues have grown at a rate of 17.8% over the last 3 years. Profit margins are weaker than most companies in Trefis coverage. Financial stability remains strong.

During market downturns, AMD stock has performed worse than the S&P 500. Inflation shock in 2022 saw a 65.4% decline, fully recovering by January 2024. COVID pandemic in 2020 led to a 34.3% decline, fully recovering by July 2020. Global financial crisis in 2008 saw a 91.2% decline, taking until August 2018 to fully recover.

Overall, AMD’s growth is strong, profitability weak, financial stability strong, and downturn resilience weak. With the stock’s high valuation, it may limit upside potential in the near-to-mid term, making it relatively expensive to buy. Consider alternative investment options for lower volatility. 1. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average dropping by 500 points. Investors are concerned about rising inflation and interest rates impacting the economy.

2. A new study has found that over 50% of Americans are not saving enough for retirement. The average retirement savings for people aged 55-64 is only $120,000, far below the recommended amount for a comfortable retirement.

3. The United Nations reported that global carbon dioxide emissions reached a record high in 2021, despite efforts to reduce emissions. The increase was driven by a rebound in economic activity following the COVID-19 pandemic.

4. Researchers have discovered a new species of dinosaur in Argentina, named “Llukalkan aliocranianus.” The carnivorous dinosaur had a unique skull structure and is believed to have lived during the Late Cretaceous period.

5. The World Health Organization has declared the Ebola outbreak in Guinea officially over after no new cases were reported for 42 days. The outbreak began in February and resulted in 16 confirmed cases and 12 deaths.

6. Tesla announced plans to invest $1 billion in a new electric vehicle manufacturing plant in Texas. The factory will produce the new Tesla Cybertruck and create thousands of jobs in the region.

7. The European Union has approved a new law banning single-use plastics such as straws, cutlery, and plates starting in 2023. The move is aimed at reducing plastic pollution and promoting sustainable alternatives.



Read more at Nasdaq: Do China Headwinds Make AMD Stock A Sell?