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Valued at $183 billion by market cap, Advanced Micro Devices, Inc. (AMD) is a leading global semiconductor company known primarily for its innovative microprocessors, graphics processing units (GPUs), and related technologies. The California-based AMD designs and produces computing and graphics solutions that power a broad range of devices, from personal computers and gaming consoles to data centers and enterprise servers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and AMD perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the semiconductor industry.
AMD leverages its innovative Ryzen CPUs and Radeon GPUs, built on advanced technology, to deliver power-efficient, competitive solutions. With a strong presence in PCs, gaming consoles, and data centers, AMD offers cost-effective, high-quality products that effectively challenge industry giants.
Despite its notable strength, AMD slipped 39.7% from its 52-week high of $187.28, achieved on Oct. 11, 2024. Over the past three months, AMD stock soared 13.2%, outpacing the broader Dow Jones Industrial Average’s ($DOWI) 1.6% fall during the same time frame.
However, shares of AMD dipped 6.4% on a YTD basis and 34.1% over the past 52 weeks, significantly underperforming $DOWI’s YTD marginal fall and 8.7% returns over the last year.
To confirm the bearish trend, AMD has been trading below its 200-day moving average since October 2024, but has been hovering above its 50-day moving average since early May.
On May 6, AMD published its fiscal 2025 first-quarter results, and its shares popped more than 17% in the rest of the week. It reported a robust quarter, with revenue reaching $7.44 billion, a 36% year-over-year increase. Adjusted EPS stood at $0.96, surpassing analyst expectations. The data center segment was a significant contributor, with revenue up 57% to $3.7 billion, driven by strong sales of EPYC CPUs and Instinct GPUs.
Industry giant, NVIDIA Corporation (NVDA) has taken the lead over AMD, showing resilience with a 3.7% rise on a YTD basis and a 22.2% uptick over the past 52 weeks.
Wall Street analysts are moderately bullish on AMD’s prospects. The stock has a consensus “Moderate Buy” rating from the 42 analysts covering it, and the mean price target of $130 suggests an ambitious potential upside of 15% from current price levels.
