Though multiple semiconductor stocks have been the superstars of 2024, and despite Advanced Micro Devices (NASDAQ: AMD) offering a strong performance in the initial months of the year, it has fallen deep into the red in more recent trading.
AMD stock is a no-brainer buy for long-term value investors for 2025, despite weak technical indicators and recent Wall Street downgrades. AMD's data center revenue is expected to drive significant growth, mirroring Nvidia's trajectory from 1.5 years ago, with margins set to rise due to high OPM in data centers. Recent Wall Street downgrade looks to be a reaction to share price decline rather than fundamentals. Market share concern is less critical given rapid growing AI demand.
In the latest trading session, Advanced Micro Devices (AMD) closed at $125.02, marking a -1.32% move from the previous day.
AMD Inc. (AMD) slipped near its 52-week low after Wolfe Research said the company could face problems heading into its January quarter. Caroline Woods points to projected A.I.
AMD (AMD -2.15%) is poised to benefit from a rebound in personal computer sales over the next three years.
AMD (AMD -0.17%) was once considered a struggling underdog chipmaker that trailed behind Intel and Nvidia in the x86 CPU (central processing unit) and discrete graphics processing unit (GPU) markets, respectively. But over the past ten years, its stock soared about 5,110% as it gained ground against Intel and kept pace with Nvidia.
Despite expectations for AI growth, Advanced Micro Devices, Inc.'s stock is near a 52-week low, underperforming the S&P 500 by nearly 20% since late October. Analysts have mixed views, with concerns about AMD's competitive position against Nvidia and more custom-based chipmakers. AMD's average EPS estimate has been cut, yet price targets have only slightly declined, and the valuation has improved quite a bit recently.
Nvidia (NVDA -1.88%) outperformed AMD (AMD -0.57%) in 2024, but 2025 remains to be seen.
AMD's recent underperformance is due to competition and market skepticism, but I believe it remains undervalued and poised for growth in 2025. AMD's competitive AI Accelerator GPU roadmap and market share gains against Intel in CPUs highlight its strong fundamentals and growth potential. Financials show robust data center revenue growth and improving operating leverage, suggesting AMD's margins will improve significantly in 2025.
It might seem intimidating to buy stocks as the S&P 500 and Nasdaq Composite hover near their all-time highs. After all, Warren Buffett told investors to be "fearful when others are greedy" -- and plenty of high-growth stocks are trading at greedy valuations.
Even though 2024 is drawing to a close and a new year full of surprises is upon us, artificial intelligence (AI) will surely remain a top priority for investors next year.
Advanced Micro Devices (AMD -2.83%) and Marvell Technology (MRVL 10.79%) have enjoyed contrasting fortunes on the stock market in 2024, with one of these names delivering stellar gains while the other one is in the red.