AMD(AMD) The Motley Fool·2025-04-23 08:45Core Viewpoint - The recent stock market sell-off, driven by tariffs, has significantly impacted AI stocks, with many losing over one-third of their value, but this decline may set the stage for a rebound in the second half of 2025, particularly for Advanced Micro Devices (AMD) and The Trade Desk [1]. Group 1: Advanced Micro Devices (AMD) - AMD has experienced a loss of over 60% in value over the past 13 months, primarily due to competition with Nvidia in the AI accelerator market and revenue declines in its gaming and embedded segments [2]. - Despite the challenges, AMD is expected to rebound in the latter half of the year, with advancements in AI accelerators, including the upcoming release of the MI350 and MI400 [3]. - The outlook for AMD's previously lagging sectors is improving, with signs of stabilization in the embedded segment and a forecasted 22% revenue growth rate for this year, following a 14% growth in 2024 [4]. - AMD's profitability is anticipated to improve due to rising revenue growth, with a forward P/E ratio of 19 suggesting it may be undervalued [5]. Group 2: The Trade Desk - The Trade Desk has seen a significant decline in stock value, losing around 65% since its peak in December, following a missed revenue estimate and a broader market sell-off [6][8]. - The company operates a buy-side digital advertising platform, allowing advertisers to manage campaigns effectively, which has historically provided a competitive advantage [7]. - The Trade Desk's P/E ratio has decreased from over 225 in December to 64, with a forward P/E ratio of 28 indicating potential value at current levels [9]. - Revenue for The Trade Desk rose by 26% in 2024, exceeding 575 million in revenue for Q1, suggesting a 17% growth rate if the prediction holds [10][11].