Investing in semiconductor stocks has generally been a good move for investors of late. In the past three years, the VanEck Semiconductor ETF has risen by just around 80%, which is a far more impressive performance than the S&P 500 and its 38% gains over that time frame.
Investors may struggle to figure out what to make of the valuation of Advanced Micro Devices (AMD 0.35%). Though its market capitalization has fallen by about half since last March, based on its trailing P/E ratio of 109, the stock still appears expensive.
Since the start of the year, AMD stock (NASDAQ: AMD) has lost 17.40% in value and Advanced Micro Devices continues to struggle as February closes out its final trading session.
Nvidia (NVDA -8.48%) crafted an incredible business model over the past two decades. In 2006, the company unveiled its CUDA developer platform, which included a programming interface, compiler, driver, runtime environment, and toolkit.
Advanced Micro Devices' (AMD -4.99%) stock surged 3,240% over the past 10 years. The underdog chipmaker once struggled against Intel and Nvidia, respectively, in the x86 CPU and discrete GPU markets, but it turned around its business under Lisa Su, who took the helm as its CEO in 2014.
Advanced Micro Devices, Inc. stock has dropped significantly, but we see a mean reversion opportunity with a strong value and growth combination. Despite concerns, AMD's data center and client segments show robust growth, while gaming and embedded segments face cyclical challenges. Margins have improved, and the company maintains solid financial health with increasing net income and free cash flow.
Advanced Micro Devices Inc. AMD is taking a beating in 2025. The stock slid to a new 52-week low of $102.17 by 11 AM on Thursday.
The semiconductor sector is a great market for investors thanks to its strong growth opportunities. Computer chips are increasingly in demand in a wide range of industries, such as robotics, automotive, and artificial intelligence.
The AMD stock price has collapsed in the past few months as the semiconductor company goes through a substantial slowdown. It has retreated to a low of $104.75, its lowest level since November 1, and 55% below the highest point in 2024.
AMD's AI Gamble: Bullish Management Vs. Market Skepticism
Semiconductor stocks have been a source of massive gains in the early days of the artificial intelligence (AI) boom.
In this video, I will cover the recent updates about AMD (AMD -2.29%). Watch the short video to learn more, consider subscribing, and click the special offer link below.