From Nasdaq: 2025-06-09 03:55:00

AMD (NASDAQ: AMD) is down nearly 50% from its peak last year, but its data center business is thriving, with revenue in the AI-focused segment jumping 57% to $3.7 billion. The company is making strategic acquisitions to enhance its AI capabilities and challenge Nvidia in the AI chip market.

AMD is aggressively pursuing its AI strategy, with recent acquisitions like Brium enhancing its software capabilities. Despite the lack of impact on the stock price, these moves show AMD’s commitment to expanding its AI ecosystem and competing with Nvidia’s CUDA programming ecosystem.

With a forward P/E of less than 30 and strong revenue growth in the first quarter, AMD looks like an attractive investment. The company’s success in AI will be crucial, and its current valuation suggests significant potential in the expanding AI market.

The Motley Fool Stock Advisor analyst team has identified AMD as a strong buy, citing the company’s history of success under CEO Lisa Su and its strategic acquisitions to improve its position in the AI market. AMD’s affordable valuation and growth potential make it a compelling investment opportunity.



Read more at Nasdaq: AMD’s Shopping Spree Continues. Is the AI Stock a Buy?