Advanced Micro Devices stock fell 18.1% in 2024 despite meeting revenue and earnings expectations

From Nasdaq: 2025-01-14 09:30:00

In 2024, Advanced Micro Devices’ stock fell 18.1%, despite meeting revenue and earnings expectations. The drop may be due to high expectations following a 127.6% rally in 2023. AMD’s strong data center growth couldn’t offset high valuations. Other segments struggled, raising concerns about competition and market share.

Investors may view AMD’s 2024 decline as a buying opportunity, given its past performance. With rivals and customers entering the AI chip market, AMD must execute well to stay competitive. Trading at 103 times trailing earnings, AMD still faces challenges despite a more reasonable 23 times 2025 estimates.

Analysts recommend AMD as one of the 10 best stocks to buy right now, highlighting its potential. While the stock’s decline in 2024 presents a buying opportunity, AMD must navigate a competitive landscape and execute effectively to maintain its position.



Read more at Nasdaq: Why Advanced Micro Devices Fell 18.1% in 2024