AMD's Stock Plunges. Buy Time?

Analyzing semiconductor stocks.

April 13, 2025

Early Bird Prime for April 13, 2025 

Remember the AI craze of 2023 and 2024? Advanced Micro Devices $AMD ( ▲ 1.34% ) was riding high on the AI wave. But fast forward to 2025, and it seems the party is over, with AMD's stock taking a nosedive. The stock is down 22.57% this year.

In March, Jefferies downgraded AMD, suggesting that the gap between AMD and Nvidia $NVDA ( ▼ 0.09% ) is widening. Not to be outdone, Mizuho also trimmed AMD’s price target to $120, citing AI sector headwinds. The AI winds might be blowing in the wrong direction for AMD.

Adding to the drama this week, KeyBanc lowered its rating on AMD from overweight to sector weight. AMD's artificial intelligence business in China seems to be experiencing an identity crisis, with market share problems and margin pressures.

But there might be a silver lining with AMD. If you're a believer in AI, this drop in stock price might just be the golden ticket you've been waiting for. With a 24% year-over-year revenue growth, AMD's financials are looking healthy.

AMD still holds a competitive position in the AI and GPU markets. 2025 is shaping up to be a year full of opportunities, with several favorable market catalysts that could turn the tide in AMD's favor.

Should you invest in AMD now, or should you avoid the stock in 2025? Here’s the answer:

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