AMD is growing in AI computing but struggling against Nvidia, stock price fell over 6%.

From Nasdaq: 2025-02-10 07:00:00

Advanced Micro Devices (NASDAQ: AMD) has historically lagged behind competitors like Intel in the PC processor market but is now a strong contender. However, the real focus is on artificial intelligence computing, where AMD is falling behind Nvidia. Despite struggles in some divisions, AMD’s data center segment showed a 69% revenue growth to $3.9 billion in Q4.

AMD reported mixed Q4 results, with gaming and embedded processor divisions struggling while client revenue saw a 58% increase to $2.3 billion. The data center segment, crucial for AI computing, grew by 69% but missed analyst expectations. Despite exceeding its own sales forecast, AMD’s stock fell over 6%.

While AMD’s stock price has dropped, it remains expensive at 113 times trailing earnings. Analysts expect significant earnings growth in 2025, which could make the stock more attractive at 34 times forward earnings. However, with Nvidia priced at 28 times forward earnings, AMD may not be the best investment choice.

Investors are being presented with a second chance at potentially lucrative opportunities with “Double Down” stock recommendations. These recommendations have historically yielded significant returns for companies like Nvidia, Apple, and Netflix. Now may be the ideal time to invest in these companies before they experience significant growth.



Read more at Nasdaq: Will AMD Be the Best Artificial Intelligence (AI) Stock of 2025?