From Nasdaq: 2025-03-21 06:02:00

Advanced Micro Devices (NASDAQ: AMD) has seen a significant drop of around 50% from its peak in March 2024 due to the AI sell-off trend. Despite this, Wall Street analysts have high price targets for AMD, with the highest at $225, suggesting a 125% upside potential.

While AMD’s data center revenue grew by 69% in Q4, Nvidia continues to outperform in this market, with a 93% increase in revenue. AMD’s struggles in gaming, embedded processors, and market share against Nvidia have contributed to its stock decline.

Although AMD’s Q4 results were mixed, with revenue growing by 24% and profits by 42%, the stock has not performed well due to its failure to gain ground on Nvidia. However, with a forward P/E ratio of 21.5 times earnings and revenue growth expectations, AMD could be a value play.

While a 125% rise in AMD stock may be unlikely, market-beating returns are possible from the current price. Investors holding onto the stock for three to five years may outperform the market. The Motley Fool Stock Advisor team has identified 10 stocks with potential for significant returns, but AMD is not among them.



Read more at Nasdaq: This Analyst Thinks AMD Stock Could Soar Over 120%. Should Investors Buy This Beaten-Down AI Stock?