Everyone drools over Nvidia, but AMD has just launched a chip exudes Blackwell. Yes, the same Blackwell that Nvidia turned into a $ 4 trillion beast.
And this is what people miss: AMD has 38% YTD growth, a 6x jump in the profit and a chip -comeback in China that can add billions of income.
The real question? Can AMD dethrone Nvidia … or is this just another AI -Kop fake?
You will discover it and I will show you exactly how I go through the risk, benefit and timing.
Let’s go in.
AMD’s overview
Advanced micro devices, or AMD, is a multinational semiconductor and is known for designing and developing affordable computer processors and graphic units. If you use a PC or laptop, take a minute to look under the hood. If it’s not on macOS, Intel or Nvidia chips, it probably uses AMD.
But AMD is not just a budget -friendly alternative. It has earned its place on the market by consistently delivering strong performance at a competitive price. And in the midst of all hype about Nvidia, 43 analysts assess the AMD shares a “moderate purchase”, a consistent consistent consistent in the past three months.
Why it is in the spotlight
So what does AMD keep a buy?
In June, AMD launched its newest MI350 series chips aimed at AI-forshloads. These processors perform better than Nvidia’s Blackwell GPU, the most advanced AI platform of the company. It is interesting that Nvidia is currently the go-t for data centers, cloud providers and laboratories.
Nvidia has long been the dominant power in AI hardware, but with AMD’s new chips and growing momentum, the question remains: is AMD a real threat to Nvidia?
Apart from that, the illumination of export restrictions will be favorable for AMD. Just like the H20 return from Nvidia to the Chinese market, AMD’s MI308 AI chips will also make a comeback.
Share price
Now, after an extensive Downtrend from October 2024 to April 2025, AMD shares get the much needed land back.
The share is currently being traded at $ 166, about 4.36% away from its 52 weeks high at $ 174.05. The recovery of AMD in recent months has convinced some investors that a new uprising can be formed, especially the as the demand from AI and data center continues to grow. AMD shares has risen by around 38%on an annual basis alone. That is nothing to sneeze.
Financial
However, it pays to check whether the excellent performance of the share has solid foundations. To do that, we have the financial data of the company viewed.
AMD reported an excellent Q1. And they will report Q2 on August 5, that’s why I am pretty enthusiastic.
In the first quarter we saw that the turnover of AMD was 35.9 percent on an annual basis and the net result increased by 476.4% to $ 709 million from the same quarter last year. It is EPS an increase of 450%, with $ 0.44.
For those who are not familiar with EPS or profit per share, it tells you how much profit a company makes for each share in its shares. Suppose a company has a net income of $ 1,000 and 1000 outstanding shares. That means it earned $ 1 for every share investors. Strong profit per share can indicate efficient activities and value for shareholders. So, AMD’s EPS jumps 6 times a strong improvement in profitability on an annual basis, powered by stronger activities and increasing demand.
Let’s talk about the stock now. AMD has performed historically well.
Let’s try to put it in perspective. An investment of $ 1,000 3 months ago would be worth $ 1,725 today. And the same $ 1000 that was invested 5 years ago would be worth $ 2,150.
Now some investors prefer dividend paying shares for regular income. But capital valuation, if all goes well, can be even more worthwhile, especially with a company like AMD. Instead of paying dividends, AMD reinvests the profit in innovation and growth. That is a big reason why the stock has risen so much over the years.
The only question that remains is: Can the share price of AMD continue to rise and retain its momentum?
Growth catalysts
Let’s look at the catalysts who can further propel AMD.
The largest that investors look at is the return of the MI308 chip in China.
In April, the MI308 chips from AMD were limited from exports in China as part of the US government export checks. As a result, the company has announced that the loss of income will reach an estimated $ 800 million
Fortunately for investors, AMD confirmed that the US Department of Trade has stated that the license for MI308 chips is “progressing for assessment” and that the company is planning to resume shipments once the licenses have been approved.
And that is a big problem for investors. The shares have passed since April 72%. As soon as it starts to sell in China and gets all missed sales, I see it rising further. But I think we will know more in Q2 next week.
Risks and red flags
Now it seems that I am very bullish on AMD, but, like other companies, it also has a good part of the risk.
The biggest threat to AMD is the ability to deliver according to expectations, and of course the competition from Nvidia and the wider market.
Nvidia became the first $ 4 trillion company thanks to the dominance in the technical industry. Because the world is increasingly dependent on artificial intelligence, Nvidia is at the forefront and encourages rapid growth. Blackwell, one of the most advanced AI chips in the company, is designed to meet the enormous computer needs of modern AI systems. It offers incredible speed and efficiency, making it an important part of everything, from data centers to advanced research.
That said, AMD cannot afford to mess around. The company builds Hype on its MI400 series Chips and has unveiled its goal to improve considerably in 2030. A significant delay in the expected product launch, or simply not to meet the expectations that the company stated, can cause a massive shift in investor and analysts sentiment.
This emphasizes the murderous competition in the industry. However, I think this pressure is a make-or-break situation for AMD. Whether it rises above the competition, whether it sinks and tries to find its way back.
Valuation breakdown
Now you may wonder, is it the right time to invest in AMD? Let’s look at the appreciation and compare it with his colleagues from the industry.
Let’s answer by looking at the price sales ratio or p/s. It is a metric that tells you how many investors pay for each dollar of the income of a company. For example, a p/s of 10 means that you pay $ 10 for every $ 1 that the company earns on sale.
AMD currently has a price sales ratio of 9.87, while Nvidia acts on a much higher 32.24. This suggests that AMD can offer better value, especially if the AI activities continue to grow. We can say that AMD is undervalued compared to Nvidia, which can suggest an upward potential.
Speaking of the top, the share costs $ 154.72 at the time of writing. It has a 52 -week high target of $ 200, which suggests a potential increase of 29.3%. In my experience, many shares can surpass their original high target as soon as they go on a bullish run. However, there are also cases where the opposite happens.
Who should buy this?
If you have watched my videos, you know that I am very conservative. I don’t go anywhere and I love companies with clear competitive benefits.
I think that investors can consider AMD because of their long -term technical growth. AMD remains very relevant and a real competitor from Nvidia. It is not just about promises, but they deliver advanced technology and make smart movements on a scale. Despite setbacks, AMD’s innovation and long -term vision show that it can be its own in the space of AI and data center.
I mean, if you had invested $ 1000 in AMD 10 years ago, it would be worth $ 8,500 today. That means it has doubled three times in 10 years, which is incredible. And I can see it happen again.
#AMD #Underdog #break