From Nasdaq: 2025-05-11 07:00:00

Advanced Micro Devices (AMD) showed signs of recovery in its first quarter of 2025 earnings report, with revenue growth up 36% year-over-year. Net income also soared to $709 million. However, the stock remains down over 30% from a year ago. Investors are torn between the positive and negative aspects of AMD’s performance.

AMD’s financials present a mixed picture, with some segments showing revenue declines while others, like AI accelerators and CPUs, are thriving. The data center segment, contributing half of AMD’s revenue, saw growth slow slightly to 57% annually. Despite some challenges, AMD’s client business, including PC chips, posted strong revenue growth, offering hope for investors.

With a forward P/E ratio of 26, AMD is considered a value stock, presenting a buying opportunity. While there are concerns about the company’s embedded and gaming segments, overall revenue growth is encouraging. The stock has the potential for growth, but investors must weigh the risks and rewards before making a decision.

The Motley Fool’s Stock Advisor team did not include AMD in their list of top 10 stocks to buy now, emphasizing the importance of diversifying investments. Past recommendations like Netflix and Nvidia have generated significant returns, highlighting the potential for growth in the stock market. Consider all options before investing in AMD or any other stock.



Read more at Nasdaq: Is It Time to Turn Bullish on AMD Stock?