AMD Stock: Is Advanced Micro Devices A Buy Right Now?
Advanced Micro Devices (AMD) stock has fallen this year amid sluggish sales of personal computers and traditional servers. It also hasn’t been able to dent Nvidia‘s (NVDA) lead in AI accelerators. Still, some investors might be wondering: Is AMD stock a buy right now?
AMD competes with Intel (INTC) in making central processing units, or CPUs, for PCs and servers. It also rivals Nvidia in the market for graphics processing units, or GPUs, for PCs, gaming consoles and artificial intelligence data centers.
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Analysts say AMD is benefiting from Intel’s woes. Intel stock has tanked on competitive and operational concerns.
In the fourth quarter, AMD took market share from Intel in CPUs for PCs as well as servers, according to Mercury Research.
AMD’s unit share of PC processor sales was 24.6% in the fourth quarter, up from 20.2% in the year-earlier period. Its unit share of the server CPU market rose to 25.1% in Q4 from 23.1% in the year-earlier period.
Chief Executive Lisa Su Making Changes
Founded in May 1969, AMD went public in September 1972. AMD shifted to a fabless semiconductor business in March 2009 by spinning off its factories as GlobalFoundries (GFS).
Chip foundry Taiwan Semiconductor Manufacturing (TSM) now produces AMD’s chips.
Current Chief Executive Lisa Su took the reins in October 2014. She shepherded the Santa Clara, Calif.-based company into a new era with its Ryzen PC processors and Epyc server chips in 2017.
Under her supervision, AMD jumped ahead of Intel in making CPUs at smaller node sizes, giving its products an edge in speed and performance. AMD is now developing chips at 3-nanometer scale. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter.
AMD also is focused on providing an alternative to Nvidia in AI accelerators with its Instinct product line.
Data Center-Related Acquisitions
Su also has overseen several big acquisitions. In February 2022, AMD completed its acquisition of Xilinx in an all-stock deal worth $49 billion. AMD has expanded its presence in the data center market with specialty chips from Xilinx.
In May 2022, AMD completed a $1.9 billion acquisition of distributed computing startup Pensando Systems. AMD said the deal would enhance its data center capabilities.
On Aug. 12, AMD completed its acquisition of Silo AI, the largest private artificial intelligence lab in Europe, for $665 million. Silo AI has developed tailored AI models, platforms and solutions for leading enterprises spanning cloud, embedded and endpoint computing markets.
On Aug. 19, AMD announced plans to buy computer hardware design firm ZT Systems for $4.9 billion in a move to better compete with AI systems leader Nvidia. AMD intends to sell ZT’s manufacturing business and keep its systems design business. AMD stock jumped 4.5% on the news.
Advanced Micro Devices News: AI Chips
On June 2 at the Computex trade show, Su announced that AMD is moving to an annual cadence for its Instinct AI accelerators.
Also at Computex, Su updated the company’s processor roadmap for notebook and desktop PCs. That includes the nascent category of high-end personal computers called AI PCs.
On Oct. 10, AMD held its latest “Advancing AI” event. The chipmaker discussed its AMD Instinct MI325X AI accelerators and next-generation networking solutions. It also launched its fifth-generation Epyc server central processing units and Ryzen AI Pro 300 Series PC processors.
At CES 2025, AMD revealed an expanded lineup of Ryzen processors for AI PCs for consumers and commercial users. It also announced that Dell Technologies (DELL) would be adding AMD Ryzen-powered PCs to its commercial PC portfolio for the first time.
AMD Stock Fundamental Analysis
On March 11, AMD stock dropped to 94.73, its lowest point since October 2023. The drop came a month after AMD reported weaker-than-expected sales of GPUs for AI data centers in the fourth quarter.
The fabless chipmaker beat estimates on the top and bottom lines in Q4 thanks to growth its mature PC and server businesses, likely at the expense of Intel.
AMD earned an adjusted $1.09 a share on sales of $7.66 billion in the fourth quarter. Analysts polled by FactSet had expected AMD earnings of $1.08 a share on sales of $7.53 billion. On a year-over-year basis, AMD earnings climbed 42% while revenue increased 24%.
For the current quarter, Advanced Micro Devices predicted sales of $7.1 billion, up 30% from the prior year. Wall Street was modeling $7 billion.
The next potential catalyst for AMD stock is the company’s first-quarter report, expected in late April.
AMD Stock Technical Analysis
Year to date through Tuesday’s close, AMD stock is down 5%. However, it has fallen 35% in the past 12 months.
Advanced Micro Devices shares ended the regular trading session Tuesday at 114.81.
AMD stock carries an IBD Composite Rating of 66 out of 99, according to IBD Stock Checkup. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
AMD stock has an IBD Relative Strength Rating of 15 out of 99. The Relative Strength Rating shows how a stock’s price performance stacks up against all other stocks over the last 52 weeks. The best growth stocks typically have RS Ratings of at least 80.
Further, AMD has an Accumulation/Distribution Rating of C, indicating lackluster interest by institutional investors.
Is AMD Stock A Buy Right Now?
No, AMD stock is not a buy right now.
AMD will need to form a new base in the right market conditions before setting a potential buy point. Check out IBD’s Big Picture column for the current market direction.
In a negative sign, AMD is trading below its 200-day moving average line, according to IBD MarketSurge charts. However, it recently climbed above its 50-day line.
The IBD Stock Checkup tool ranks AMD stock as No. 9 out of 39 stocks in IBD’s fabless semiconductor industry group. The fabless chipmaker group ranks No. 128 out of 197 industry groups that IBD tracks. IBD trading guidelines recommend focusing on top-rated stocks in leading industry groups.
To find the best stocks to buy or watch, check out IBD Stock Lists as well as IBD’s Leaderboard, MarketSurge and SwingTrader platforms.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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