Monday's ETF Movers: SPXL, APIE
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2025
0mins
Should l Buy AMD?
Source: NASDAQ.COM
ETF Performance: The ActivePassive International Equity ETF is down approximately 1.5%, with notable declines in shares of James Hardie Industries (down 18.7%) and Jinkosolar Holding (down 5.6%).
Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 205.940
Low
200.00
Averages
284.10
High
377.00
Current: 205.940
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Data Center Revenue Accelerates Growth
- Data Center Revenue Growth: AMD's data center revenue increased by 39% year-over-year in Q4 2025, a significant acceleration from 22% in Q3, indicating the company's recovery potential in this area, although the overall growth rate remains below the management's target of 60%.
- Market Share and Competition: AMD's stock rose approximately 60% in 2025, but experienced a pullback after the Q4 earnings announcement, with the current P/E ratio dropping from nearly 40 to 31, reflecting a market reassessment of its valuation, especially compared to rival Nvidia, which trades at a P/E of 24.
- Chinese Market Recovery: With the Trump administration allowing exports to China, AMD's sales are starting to rebound, a trend expected to significantly boost revenue throughout 2026 and beyond, further driving growth in its data center business.
- Long-Term Growth Outlook: AMD's five-year guidance released in November projected a 60% CAGR for the data center division and a 35% overall CAGR for the company, and while Q4 slightly missed these projections, it still shows strong progress toward these goals, with analysts expecting revenue growth of 34% and 37% for 2026 and 2027, respectively.
See More
AMD Positioned for Growth Amid AI Infrastructure Spending Surge
- Optimistic Market Outlook: McKinsey estimates that global spending on data centers will reach $7 trillion by 2030, driving rapid development in AI infrastructure, positioning AMD as an emerging force in the AI chip market to capitalize on this trend.
- Earnings Beat Expectations: AMD's Q4 2025 earnings report revealed an adjusted EPS of $4.17, a 26% year-over-year increase, and despite a 17% drop in stock price post-release, the market remains optimistic about its future growth.
- Revenue Growth Forecast: AMD anticipates a 32% year-over-year revenue increase in the current quarter, and projects its addressable market opportunity in data centers to grow from $200 billion last year to $1 trillion by 2030, indicating strong market demand.
- Attractive Valuation: With a PEG ratio of 0.65, AMD's stock is considered undervalued, and analysts expect EPS to exceed $20 by 2030; combined with the Nasdaq-100's forward P/E ratio, AMD's stock could potentially surpass $500, making it a multibagger opportunity.
See More
Investment Opportunities During Market Dips
- Nvidia's Market Dominance: As of the end of 2025, Nvidia commands a 92% share of the graphics processing unit (GPU) market, with its latest earnings report showing a 62% year-over-year revenue growth to $57 billion and a 67% increase in diluted earnings per share (EPS), underscoring its strong competitive position and growth potential.
- Amazon's Growth Potential: Despite slightly missing earnings expectations in Q4 2025, Amazon's sales still increased by 14%, with AWS sales growing by 24%, and its operating income reaching $80 billion, indicating resilience and profitability amid market fluctuations.
- Alphabet's Strong Fundamentals: In 2025, Alphabet's consolidated revenues grew by 15% year-over-year, achieving a 32% operating margin and a 34% increase in diluted EPS, with its leadership in AI hardware and software making it an attractive option during market downturns.
- Investment Timing During Market Rebounds: As market volatility occurs, investors should focus on these fundamentally strong companies, particularly during downturns when their stocks may be undervalued, presenting excellent buying opportunities.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these firms.
- Market Focus: Analysts' views on TSM stock have garnered investor attention, indicating ongoing interest and potential investment opportunities within the semiconductor sector.
- Impact of Rating Changes: These rating adjustments may influence investor decisions, particularly in the current economic climate where analysts' opinions are considered vital market signals.
- Source of Information: A complete overview of analyst rating changes can be found on Benzinga's analyst ratings page, providing a comprehensive market perspective and data support.
See More
AMD's Fourth Quarter Performance Shows Significant Improvement
- Quality Score Surge: AMD's quality score jumped from 82.23 to 92.71, indicating a significant improvement in profitability and fundamental strength, enhancing its competitive position among peers, particularly driven by its AI strategy.
- Record Financial Performance: In Q4, AMD reported $10.3 billion in revenue, a 34% year-over-year increase, with net income rising 42% to $2.5 billion and free cash flow nearly doubling to $2.1 billion, showcasing exceptional financial execution.
- Data Center and AI Expansion: The data center segment achieved record revenue of $5.4 billion in Q4, with management projecting over 60% annual growth in the next three to five years, fueled by widespread adoption of EPYC server CPUs and Instinct MI350 GPUs.
- Stock Volatility and Market Performance: Despite a 7.84% decline in AMD's stock year-to-date, it has risen 11.67% over the past six months and 84.19% over the year, reflecting market confidence in its long-term growth potential.
See More
AMD's Data Center Sales Accelerate Growth
- Data Center Sales Growth: AMD's data center revenue accelerated to a 39% year-over-year growth in Q4 2025, up from 22% in Q3, indicating the company's potential in the AI sector, although still below the management's 60% CAGR target.
- Market Share Recovery: With the Trump administration allowing exports to China again, AMD's sales are starting to rebound, which is expected to provide strong growth momentum throughout 2026 and beyond, further solidifying its position in the global market.
- Stock Price Pullback Reasons: AMD's stock was trading at nearly 40 times forward earnings entering Q4, now down to about 31 times, which, despite being high compared to Nvidia's 24 times, reflects market concerns over its valuation.
- Future Growth Expectations: Wall Street analysts forecast AMD's revenue growth at 34% for 2026 and 37% for 2027, aligning with the management's overall 35% CAGR expectation, indicating a positive outlook on AMD's growth potential.
See More
AMD Data Center Revenue Accelerates Growth
- Data Center Revenue Growth: AMD's data center revenue increased by 39% year-over-year in Q4 2025, a significant acceleration from 22% in Q3, indicating the company's recovery potential in this area, although the overall growth rate remains below the management's target of 60%.
- Market Share and Competition: AMD's stock rose approximately 60% in 2025, but experienced a pullback after the Q4 earnings announcement, with the current P/E ratio dropping from nearly 40 to 31, reflecting a market reassessment of its valuation, especially compared to rival Nvidia, which trades at a P/E of 24.
- Chinese Market Recovery: With the Trump administration allowing exports to China, AMD's sales are starting to rebound, a trend expected to significantly boost revenue throughout 2026 and beyond, further driving growth in its data center business.
- Long-Term Growth Outlook: AMD's five-year guidance released in November projected a 60% CAGR for the data center division and a 35% overall CAGR for the company, and while Q4 slightly missed these projections, it still shows strong progress toward these goals, with analysts expecting revenue growth of 34% and 37% for 2026 and 2027, respectively.
See More
AMD Positioned for Growth Amid AI Infrastructure Spending Surge
- Optimistic Market Outlook: McKinsey estimates that global spending on data centers will reach $7 trillion by 2030, driving rapid development in AI infrastructure, positioning AMD as an emerging force in the AI chip market to capitalize on this trend.
- Earnings Beat Expectations: AMD's Q4 2025 earnings report revealed an adjusted EPS of $4.17, a 26% year-over-year increase, and despite a 17% drop in stock price post-release, the market remains optimistic about its future growth.
- Revenue Growth Forecast: AMD anticipates a 32% year-over-year revenue increase in the current quarter, and projects its addressable market opportunity in data centers to grow from $200 billion last year to $1 trillion by 2030, indicating strong market demand.
- Attractive Valuation: With a PEG ratio of 0.65, AMD's stock is considered undervalued, and analysts expect EPS to exceed $20 by 2030; combined with the Nasdaq-100's forward P/E ratio, AMD's stock could potentially surpass $500, making it a multibagger opportunity.
See More
Investment Opportunities During Market Dips
- Nvidia's Market Dominance: As of the end of 2025, Nvidia commands a 92% share of the graphics processing unit (GPU) market, with its latest earnings report showing a 62% year-over-year revenue growth to $57 billion and a 67% increase in diluted earnings per share (EPS), underscoring its strong competitive position and growth potential.
- Amazon's Growth Potential: Despite slightly missing earnings expectations in Q4 2025, Amazon's sales still increased by 14%, with AWS sales growing by 24%, and its operating income reaching $80 billion, indicating resilience and profitability amid market fluctuations.
- Alphabet's Strong Fundamentals: In 2025, Alphabet's consolidated revenues grew by 15% year-over-year, achieving a 32% operating margin and a 34% increase in diluted EPS, with its leadership in AI hardware and software making it an attractive option during market downturns.
- Investment Timing During Market Rebounds: As market volatility occurs, investors should focus on these fundamentally strong companies, particularly during downturns when their stocks may be undervalued, presenting excellent buying opportunities.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, including upgrades, downgrades, and initiations, reflecting varying market perspectives on these firms.
- Market Focus: Analysts' views on TSM stock have garnered investor attention, indicating ongoing interest and potential investment opportunities within the semiconductor sector.
- Impact of Rating Changes: These rating adjustments may influence investor decisions, particularly in the current economic climate where analysts' opinions are considered vital market signals.
- Source of Information: A complete overview of analyst rating changes can be found on Benzinga's analyst ratings page, providing a comprehensive market perspective and data support.
See More
AMD's Fourth Quarter Performance Shows Significant Improvement
- Quality Score Surge: AMD's quality score jumped from 82.23 to 92.71, indicating a significant improvement in profitability and fundamental strength, enhancing its competitive position among peers, particularly driven by its AI strategy.
- Record Financial Performance: In Q4, AMD reported $10.3 billion in revenue, a 34% year-over-year increase, with net income rising 42% to $2.5 billion and free cash flow nearly doubling to $2.1 billion, showcasing exceptional financial execution.
- Data Center and AI Expansion: The data center segment achieved record revenue of $5.4 billion in Q4, with management projecting over 60% annual growth in the next three to five years, fueled by widespread adoption of EPYC server CPUs and Instinct MI350 GPUs.
- Stock Volatility and Market Performance: Despite a 7.84% decline in AMD's stock year-to-date, it has risen 11.67% over the past six months and 84.19% over the year, reflecting market confidence in its long-term growth potential.
See More
AMD's Data Center Sales Accelerate Growth
- Data Center Sales Growth: AMD's data center revenue accelerated to a 39% year-over-year growth in Q4 2025, up from 22% in Q3, indicating the company's potential in the AI sector, although still below the management's 60% CAGR target.
- Market Share Recovery: With the Trump administration allowing exports to China again, AMD's sales are starting to rebound, which is expected to provide strong growth momentum throughout 2026 and beyond, further solidifying its position in the global market.
- Stock Price Pullback Reasons: AMD's stock was trading at nearly 40 times forward earnings entering Q4, now down to about 31 times, which, despite being high compared to Nvidia's 24 times, reflects market concerns over its valuation.
- Future Growth Expectations: Wall Street analysts forecast AMD's revenue growth at 34% for 2026 and 37% for 2027, aligning with the management's overall 35% CAGR expectation, indicating a positive outlook on AMD's growth potential.
See More
