AMD

Don’t Give Up! AMD Stock Could Surge to $250 in 2025.

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Shares in Advanced Micro Devices (NASDAQ:AMD) may no longer be falling, but Advanced Micro Devices stock will remain stagnant in the near-term. Mixed earnings and market uncertainty have made investors wary of buying AMD. Shares may face renewed pressure. It depends on any upcoming negative impact on the stock.

Yet while you shouldn’t give your hopes up about a fast rebound for AMD anytime soon, that’s not to say that now is the perfect time to take profit or stay away. Doing so could be a regretful move in hindsight.

Advanced Micro Devices Stock and the Possibility of Yet Another Sell Off

“Show me stock” is an apt descriptor for AMD today. Following the aforementioned quarterly earnings release, investors have come to terms with the fact that sales of the company’s AI accelerator chips will not hit some of the loftier forecasts presented by analysts in recent months.

Investors have become more motivated to take profit on semiconductor stocks, including those benefiting from the AI chips boom. Concerns are rising that top stocks in the sector could experience more near-term turbulence, as high expectations pave the way to big disappointment with results in the quarters ahead.

However, as hinted above, besides these negatives, there’s another possible negative that may wreak havoc on performing Advanced Micro Devices stock. That would be the potential for further China-related headwinds for the company. So far this year, AMD has already been affected by Chinese crackdowns on U.S. chip technology.

Now, with the Biden Administration imposing new tariffs on various Chinese-made products, including semiconductors, China could retaliate with some tariffs and/or restrictions of its own. Even if such retaliation doesn’t do long-term damage to AMD, on the onset such news could have an outsized impact on price performance.

Why There’s No Need to Stay Away

“AI mania” keeps waning. New risks for AMD are starting to loom. With this, why are we not suggesting that now is the time to take profit and/or stay away from Advanced Micro Devices stock? Mostly, because better times for this stock may be just around the corner. Here’s what we mean.

After mixed results for the preceding quarter, the market has dialed back its expectations. This leaves plenty of room for AMD to provide some positive surprises in its next few earnings releases.

For instance, the company could once again raise its 2024 MI300 AI accelerator chip sales forecasts. This may lead to a resurgence in confidence about this year’s AI-related growth.

AMD could also unveil more about its efforts to beat out competitors, and become a leading name in the AI-PC chip market. Outside of AI, improved chip demand in other end-user markets, like gaming, is something else that would likely help to boost sentiment for shares.

Put together, these positives will undoubtedly renew confidence that AMD will meet or beat analyst consensus for 2025. This suggests the strong potential for Advanced Micro Devices stock to really take off again over the next twelve months.

The Verdict: As Before, Don’t Let Go of AMD

Our view on Advanced Micro Devices remains the same. As we’ve put it previously, patience stands to pay off if you decide to buy or maintain a position in this stock.

The sell-side consensus calls for AMD to report earnings of $5.56 per share next year. Some forecasts call for earnings topping $8 per share. Even if the stock experiences some multiple compression, such results would likely send this stock to $200, $225, or perhaps even to $250 per share.

If you want to wait for more weakness before adding to/initiating a position, feel free to do so. Otherwise, don’t let go of any existing Advanced Micro Devices stock positions. Recent and potential near-term headwinds are no reason to stay away.

Advanced Micro Devices stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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The post Don’t Give Up! AMD Stock Could Surge to $250 in 2025. appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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