Core Viewpoint - AMD's stock has experienced a decline of approximately 10% since the emergence of a Chinese AI start-up, DeepSeek, which has raised concerns in the technology sector, particularly affecting chip stocks [2][3] Valuation Analysis - AMD's forward price-to-earnings (P/E) ratio is currently at 25.6, which is comparable to the levels seen in September 2023, while its market capitalization has increased by roughly $30 billion over the past 15 months [5][8] - The forward P/E ratio indicates that analysts are projecting a proportional rise in future earnings relative to the increase in AMD's share price, resulting in a flat forward P/E multiple [8][10] Performance Insights - AMD's data center business grew by 94% to $12.6 billion last year, showcasing significant operating leverage and widening profit margins, although sluggish growth in gaming and embedded units is impacting overall revenue [7][9] - The market appears to be valuing AMD's data center operating income at approximately 10x, suggesting that the company's valuation has increased by about $30 billion since September 2023 [10] Competitive Positioning - AMD's data center business is expected to become increasingly valuable, especially as it gains traction with major cloud hyperscalers like Microsoft and tech giants such as Meta Platforms, which are also Nvidia customers [11][12] - The current valuation of AMD is seen as significantly discounted compared to Nvidia, presenting a potential investment opportunity [12]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Advanced Micro Devices (AMD -2.36%) shares fell following its Q4 earnings report as its data center revenue soared but still came in below analysts' consensus expectations. The stock is now down more than 35% over the past year, as of this writing.Let's dive into the chipmaker's fourth-quarter results to see if this dip in price could be a buying opportunity.Data center growth in focusAMD's data center business was in focus when the company reported its Q4 results. The segment's revenue surged 69% year over ...

I bought up Advanced Micro Devices, Inc. (NASDAQ: AMD ) at around $88 in May 2023, and it turned out to be a great move. The company executed its growth strategy well and took advantage ofWe bring a rigorous research-driven approach to uncovering high-conviction stocks with compelling growth potential across dynamic sectors like big tech, semiconductors, AI, and healthcare. Leveraging comprehensive sector insights, We analyze both low-risk and selective high-risk plays that have the potential to outperform. ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.This year, I have started expansion of my coverage towards semiconductor companies. Earlier, I already covered Intel ( INTC ) and Nvidia ( NVDA ) and with this Q4 earnings report , I am adding AdvancedDhierin runs the investing group The Aerospace ...

Do two things to further your tech portfolio. First, click the 'Follow' button below next to my name. Second, if you want more of this two-fold analysis, step up to being a paid subscriber to my Investor Group Tech Cache with a two-week free trial and read more of this type of analysis on other tech stocks and assets.Coming into Advanced Micro Devices, Inc.'s (NASDAQ: AMD ) Q4 earnings report , I told my subscribers I was looking for a bottom to begin forming, potentially between $110 and $100. I said even ...

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Investment Rating - The report assigns a "Buy" rating for Advanced Micro Devices (AMD US) [5][11][16] Core Insights - The report indicates that while the data center business revenue fell short of expectations, the stock remains attractive. The target price has been adjusted down to $141, reflecting a potential upside of 25.9% from the current price of $112.01 [5][11][16] - The company reported 4Q24 revenue of $7.658 billion, exceeding both the report's and market's expectations of $7.5 billion. The adjusted EPS for 4Q24 was $1.09, aligning with expectations [5][6] - Management guidance for 1Q25 revenue is set at $7.1 billion, which is consistent with market expectations. The company anticipates strong double-digit growth for the full year of 2025 [5][6] Financial Overview - Revenue projections for AMD are as follows: - 2023: $22.68 billion - 2024: $25.785 billion - 2025E: $31.433 billion - 2026E: $38.368 billion - 2027E: $40.651 billion - Year-over-year growth rates are projected at -3.9% for 2023, 13.7% for 2024, and 21.9% for 2025 [4][13] - Net profit estimates are: - 2023: $4.302 billion - 2024: $5.420 billion - 2025E: $7.477 billion - 2026E: $9.975 billion - 2027E: $13.126 billion - The report highlights a decrease in the expected EPS for 2025 from $4.94 to $4.55, reflecting an adjustment of -8% [4][5][6] Market Performance - AMD's stock has seen a year-to-date change of -7.27% and has a market capitalization of approximately $181.77 billion [3][4] - The stock's 52-week high was $211.38, while the low was $112.01 [3][4] Product and Business Insights - The report notes that the data center revenue for 4Q24 was $3.9 billion, slightly below the expected $4.1 billion. However, management expects data center GPU revenue to exceed $5 billion for the full year of 2024 [5][6] - The MI325 product has been shipped to customers, and there is strong enthusiasm for the upcoming MI350 product, which is expected to launch earlier than initially planned [5][6] - The report emphasizes AMD's leadership in Chiplet technology, which may enhance product diversity and flexibility compared to competitors [5][6]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

After the bell on Tuesday, we received fourth quarter results from Advanced Micro Devices (NASDAQ: AMD ). The chipmaker has been one of the more disappointing stocks in the market over the past year, losing more than a thirdI am a market enthusiast and part-time trader. I started writing for Seeking Alpha in 2011, and it has been a tremendous opportunity and learning experience. I have been interested in the markets since elementary school, and hope to pursue a career in the investment management industry. ...