AMD Stock: Can the PC Refresh Cycle Spark a Rally?

Core Viewpoint - Advanced Micro Devices (AMD) has faced significant challenges in the past year, with shares down 49% over the past 52 weeks, largely due to comparisons with NVIDIA, a leading competitor in the semiconductor industry [1] Business Segments - AMD's business is divided into several segments, with the data center segment being the largest and fastest-growing, while the client segment is the second-largest and second-fastest-growing [2] Market Opportunities - A potential PC refresh cycle in 2025 could significantly benefit AMD, allowing it to capture market share from Intel, especially as Microsoft ends support for Windows 10 [3][6] - IDC forecasts a 3.7% growth in total PC shipments in 2025, a notable increase from 1% growth in 2024, with commercial purchasers expected to drive this growth [7] Client Segment Performance - AMD's client segment focuses on CPUs for desktops and laptops, where it has increased its market share in desktop CPUs by over 7% to 27% and in laptops by over 3% to nearly 24% in 2024 [4][5] - AMD's latest processors are generally viewed as superior to Intel's, with performance gains of 7% to 22% compared to Intel's maximum gain of 9% [5] Revenue Contribution - The client segment generated $2.3 billion in revenue last quarter, accounting for approximately 30$155.83, representing a 57.15% upside potential, with expectations of a stronger performance in the client segment contingent on improvements in the data center segment [6][10]