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1 day ago
AMD Stock Drops 44%, Is a Big Comeback Coming?
By: Barchart | March 21, 2025
Shares of Advanced Micro Devices (AMD) have witnessed a notable decline, trading approximately 44% lower than their 52-week high of $187.28. This downturn largely reflects AMD’s challenges in capturing a significant share of the rapidly expanding artificial intelligence (AI) market, where Nvidia (NVDA) holds a dominant position.
In addition to AI, macroeconomic and competitive headwinds in the CPU market added further pressure. The company’s full-year (2025) revenue forecast has also disappointed investors, exacerbating concerns and weighing on its stock performance.
Despite these setbacks, AMD has bright spots. The company anticipates robust growth in its data center AI segment, which could serve as a key driver for recovery. Looking ahead to 2025, AMD’s leadership is optimistic about improving demand across all business segments, particularly in data centers and client services, with moderate gains expected in gaming and embedded solutions.
Against this backdrop, let’s explore AMD’s prospects and opportunities that could spark a rebound in its stock price.
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AMD’s Data Center Boom: A Catalyst for Stock Growth
AMD’s data center business is growing rapidly, delivering record revenue. Moreover, the company is focused on offering a wide range of high-performance adaptive hardware and software solutions in the AI space to capture demand and accelerate its growth. Further, it is expanding its partnerships to accelerate the deployments of AMD-based AI solutions at a significant scale.
Demand for AMD's AI accelerators, particularly the AMD Instinct MI300X GPUs, is surging as large hyperscalers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) integrate them into their operations. AMD has unveiled an accelerated roadmap for its AI accelerators to maintain its competitive edge, committing to an annual release cycle of cutting-edge solutions. Furthermore, the launch of its 5th Gen AMD EPYC server processors is set to redefine performance benchmarks in data center workloads.
The company’s financial performance reflects its strong position in the market. AMD reported $12.6 billion in data center revenue for 2024, marking a staggering 94% increase from the previous year’s $6.5 billion. This surge was driven by the robust adoption of AMD Instinct GPUs and EPYC CPUs, solidifying its foothold in the AI and cloud computing sectors.
Further, to enhance its AI capabilities, AMD completed the acquisition of Silo AI, a leading AI lab in Finland. This acquisition strengthens AMD’s ability to develop and deploy advanced AI models on its hardware.
On the product front, AMD has ramped up volume production of the MI325X GPUs, which have been well-received. The company has secured several high-profile deals with customers deploying AMD Instinct solutions at scale for both inferencing and training AI models.
Looking ahead, AMD’s next-generation MI350 series is set to deliver significant improvement in AI compute performance over its predecessor. This could lead to solid demand, and the company plans to ramp up production by mid-year. Furthermore, the development of the MI400 series is well underway, promising even more significant advancements in AI and networking integration.
Besides hardware, AMD is also investing heavily in software capabilities and expanding its open ecosystem. It continues to enhance its ROCm software stack, optimizing AI workloads and simplifying the developer experience. As the company strengthens its leadership in AI and data center solutions, it is poised to deliver significant growth, which will drive its share price higher.
AMD’s Competitive Edge in CPUs
While AMD’s AI and data center business drives significant growth, its CPU segment will likely complement its growth. The company’s EPYC processors continue to gain momentum in the server market, helping AMD expand its market share. As businesses seek high-performance computing solutions, AMD’s combination of strong performance and cost efficiency gives it a distinct edge.
The PC market is also showing signs of recovery, with AMD projecting mid-single-digit growth in 2025. Additionally, as AI-powered PCs become more prevalent, AMD’s leadership in AI-enabled CPUs further solidifies its competitive position.
Is AMD Stock Set for a Comeback?
Wall Street analysts have a “Moderate Buy” consensus rating on AMD stock, suggesting that the stock is well-positioned for a rebound.
Overall, AMD is an attractive investment for investors seeking exposure to a stock with a reasonable valuation and strong growth potential led by AI-driven demand.
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1 week ago
AMD Advanced Micro Devices Weekly RSI Ensemble is now signaling oversold conditions across multiple RSI lengths, setting the stage for a potential shift in momentum...
By: TrendSpider | March 16, 2025
• AMD has erased its 2023 rally, trading down 55% from last March and another 16% YTD before finding support at the Point of Control from its 2021 highs. Despite trading at the same price, AMD's P/E has compressed from 45x to 30x, making it significantly cheaper on a ttm earnings basis. Weekly RSI Ensemble is now signaling oversold conditions across multiple RSI lengths, setting the stage for a potential shift in momentum.
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1 month ago
$AMD - Millions worth of bullish, short-dated tech prints just flooded the tape
By: Cheddar Flow | February 18, 2025
• Millions worth of bullish, short-dated tech prints just flooded the tape
$INTC, $AAPL, $AMZN, $GOOG
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Stock Guy777
1 month ago
Not quite where I wanted to be today, but it reacted similarly.
But now we got multiple up sessions on the way.
The Bulls
“AMD did not deliver a double beat, which would have been ideal, but it still delivered quite positive results,” wrote Seeking Alpha Investing Group Leader Jonathan Weber in “AMD: Use This Buying Opportunity As The Market Overreacts.” “From a growth-to-valuation perspective, AMD seems quite attractive to me right here, with shares now trading at a 52-week low despite ongoing operational success.”
“AMD's Q4 results show strong growth, with a 69% YoY increase in data center revenue and stable client segment performance,” added SA Investing Group Leader Oakoff Investments in “AMD: The Market Likely Got It Wrong.” “AMD has now got an even bigger upside after the Q4 print. My calculations point to a price of $148.5/share by the end of this year (+36%).”