🕷️ Crawler Inspector

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1. Shard Calculation

Query:

Response:

Calculated Shard: 57 (from laksa094)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa057.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://seekingalpha.com/article/4817885-amd-there-is-still-time-to-accumulate-shares\')), getAhrefsUnparsedNoserviceFromURL(\'https://seekingalpha.com/article/4817885-amd-there-is-still-time-to-accumulate-shares\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/seekingalpha.com\/article\/4817885-amd-there-is-still-time-to-accumulate-shares","crawl_time":1773730577,"first_indexed_time":1756479045,"http_code":200,"src_unparsed":"com,seekingalpha!\/article\/4817885-amd-there-is-still-time-to-accumulate-shares s443","src_root_hash":"11478393694123815657","history_drop_reason":null,"meta_title":"AMD: There Is Still Time To Accumulate Shares (NASDAQ:AMD) | Seeking Alpha","meta_descriptions":["Advanced Micro Devices, Inc. is a Strong Buy as its AI work, gaming rebound, and financials make it a good pick against Nvidia and Intel. Click for my AMD update."],"attrs_boilerpipe_text":"Vertigo3d\/E+ via Getty Images\nAs I mentioned in\nmy previous article\non\nAdvanced Micro Devices, Inc.\n(\nAMD\n), the stock has never really been \"loved\" by the market in my 8 years of covering it. And at the beginning of\n2025, when I last covered the stock, AMD's valuation kept decreasing due to seemingly unfounded skepticism, which did not make sense to me.\nSeeking Alpha\nNow, since then, AMD stock has finally started to recover, and it seems to be on track to reach my price target of $223 by the end of the year, which I expressed in my previous article. While some investors may become cautious about buying AMD shares, since the price has almost doubled over the last four months, the local pullback we are currently seeing presents a solid chance to invest in the company for the medium to long term. Therefore, I reiterate my\nStrong Buy\nrating for AMD.\nThe market is finally recognizing AMD's potential in the AI market\nOf course, one of the primary reasons to be bullish about AMD is its potential in the AI semiconductor market. For some time, the market seemed to discount AMD's efforts in building AI-focused chips, and there was a somewhat strong sentiment that the company had \"lost the war\" to Nvidia (\nNVDA\n). This was clearly a wrong oversimplification of the AI hardware business dynamics, and now the market has finally started to recognize that a) AMD is a strong player in AI semiconductors, and b) being the \"\nsecond best\n\" might not even be as bad as some would suggest.\nAMD's Data Center revenue only\nincreased\n14% year-over-year in the latest quarter, but the main reason for that was the sale restrictions to China. For more details, there is a\nsolid roundup by James Foord\nhere on Seeking Alpha.\nIn general, I believe AMD is progressing well in its Instinct AI accelerators, with a solid launch of the MI350 series of products, which\noffer\ncomparable performance to Nvidia's Blackwell B200, and new\npartnerships\nlike the one with Oracle (\nORCL\n), which is building a 27,000-plus node AI cluster with AMD's MI accelerators and EPYC Turin CPUs.\nFrom a competitive standpoint, MI355 matches or exceeds B200 in critical training and inference workloads and delivers comparable performance to GB200 for key workloads at significantly lower cost and complexity. For upscale inferencing, MI355 delivers up to 40% more tokens per dollar, providing leadership performance and clear TCO advantages.\nAMD is also\nexpected\nto release MI400 accelerators next year, which should make the company even more competitive in the AI accelerator market. While AMD might not reach Nvidia's level of sales, I believe the company will still benefit immensely from the AI market since its chips provide great inference performance for less money. And because more AI functionality is being integrated into everyday tools used by a lot of people, (it seems like AI is now a part of every single software on the market) the need for powerful and cost-efficient inference chips will only increase over time. This is not to mention AMD is still a big player in the data center CPU market, where the only major competition is the struggling Intel (\nINTC\n). (more on that later)\nAs a result, AMD does not need to reach Nvidia's market share to still increase its data center sales significantly in the coming years. Since big tech is\nexpected\nto spend $364 billion on AI CapEx this year alone, even a single additional percentage point in market share could lead to a 10% revenue increase for AMD.\nThe company's client and data center businesses continue to benefit from Intel's struggles\nIn the CPU and desktop GPU segments, AMD still has solid room to grow as its primary competitor, Intel, continues to struggle and lose market share. In the desktop market, AMD has already\novertaken\nIntel for the first time since 2006. In Q2, AMD's Client segment surged by another 67% year-over-year, driven by Ryzen desktop CPUs.\nPassMark\nAMD's laptop market share continues to increase as well, and I expect this dynamic to accelerate in the near future. Here,\nmy thesis from 2019\n— that AMD has an impressive mobile offering which should help the company grow its sales significantly — still holds. AMD\nseems\nto be the processor of choice for many Copilot-powered laptops with local AI inferencing.\nPassMark\nThe market share expansion is nowhere more evident than in the server market. AMD's Turin EPYC processors are\nreported\nto outperform Intel's latest Xeon chips, so I expect more companies to choose the former in the coming quarters. During its peak in Q4 2021, Intel\ngenerated\n$7.3 billion in Data Center Group sales, so AMD can easily reach comparable levels of revenue in the medium term, unless Intel effects an unlikely quick turnaround. For context, AMD generated $3.2 billion from its data center segment. This also includes AI accelerators, which were clearly not offered by Intel in 2021.\nPassMark\nAMD's gaming business should recover soon\nWhen it comes to the gaming business, AMD has had a difficult couple of years, with this segment of revenue declining significantly. This was one of the biggest issues I saw after the Q4 results — AMD's gaming revenue in the quarter\ndropped\nby 59% year-over-year, and full-year 2024 gaming sales decreased by 58%. This was an alarming dynamic and it likely became the reason why the company started to combine the gaming and client revenue in its reports\nstarting\nwith Q1 this year.\nThere were several reasons for the gaming revenue decrease, such as general\nstagnation\nin the video games market, the current console generation starting to reach maturity, and intensified competition from Nvidia which offered a better software\/hardware integration for not much more money. However, AMD's gaming revenue has already started to recover in the latest quarter, and I expect the company's gaming business will be fine long term.\nIn more detail, in Q2 this year, AMD's gaming sales surged by 73%, from $648 million last year to $1,122 million now. The company names two major drivers of this growth — a \"large double-digit\" growth in the console semi-custom segment and strong sales of the new Radeon 9000 series graphics cards.\nOn the latter,\nthe review roundup\non AMD's new gaming GPUs is overwhelmingly positive, and major outlets state that \"Nvidia finally has some major competition.\" The company itself claims that the RX 9060 XT GPU offers the \"best performance-per-dollar\" and that the demand outpaced supply in Q2. From my quick glance at the\ngamers' sentiment\nabout the new GPUs on Reddit, it seems that AMD delivered exactly what everyone needed at a very affordable price. Therefore, it is likely the positive momentum will continue in the near future, especially with the holiday season coming up, and AMD's gaming GPU business should at least stabilize for the rest of 2025.\nWhat should also help AMD is the significant number of big video game titles releasing in the second half of 2025. The\nlist\nincludes such anticipated games as:\nTake-Two's (\nTTWO\n) new\nMafia\nand\nBorderlands\n: both are very big franchises with strong player counts;\nEA's (\nEA\n)\nBattlefield 6\n: the game\nhad\na record half a million concurrent players during the beta test and is likely to sell well thanks to positive reviews;\nMicrosoft's (\nMSFT\n) titles like\nThe Outer Worlds 2\nand the new\nCall of Duty\n.\nThese games are extremely popular, but more importantly, they are hardware-demanding as well, which is likely to prompt many players to upgrade their systems with new CPUs and GPUs. And since AMD has very solid offerings in terms of price-to-performance combination, gaming hardware revenue should see a bump in Q3 and Q4.\nAdditionally, in the console business, AMD has recently\nsigned\nanother multi-year partnership with Microsoft to develop chips for the next generation of consoles, handheld devices, PCs, and cloud. This collaboration is huge for AMD as it covers a wide range of devices, and cloud gaming is especially interesting here. AMD is also\nexpected\nto power Sony's (\nSONY\n) PlayStation 6, as it reportedly\nwon\na contract in 2022 over Intel.\nXbox and PlayStation together\naccount\nfor about a 70% share of the console market, which is expected to reach $25.3 billion next year and $26.7 billion by 2029. Since SoCs are\nresponsible\nfor about 20-22% of console costs, AMD should make $3.5-4 billion on average from consoles alone each year in the next five years, with additional revenue coming from gaming PCs and cloud sales. This should provide a nice boost of additional revenue to the company that is already doing well in other segments.\nAMD's financial performance is solid with little financial risks\nRegarding AMD's financials, the company appears to be in decent shape, from my point of view. So far this year, AMD's revenue increased by 36% in Q1 and 32% in Q2, and it is\nexpected\nto grow by an average of about 22% in the next three years. The company's earnings are estimated to increase even faster than revenue, with a 3-year average growth of about 32%. AMD also reiterated in its latest earnings call that the margins are expected to improve significantly once there is a sufficient ramp-up in its AI MI-series accelerators and once its China-aimed MI308 GPU inventory is released.\nAMD's current ratio (current assets\/current liabilities) was at a healthy level of 2.5 in the latest quarter. AMD's free cash flows were also at a decent level of $1 billion in Q2, so there is very little financial risk here, especially with $5.8 billion in cash and equivalents and just $3.2 billion in long-term debt, which the company raised recently mostly just to cover the acquisition of ZT Systems.\nAdditionally here, the company continues to increase its R&D costs in a healthy way, with a 20% growth in Q2. AMD's SG&A expenses did surprisingly surge by 55% in the quarter, but it seems to have been related to $83 million in transaction costs related to the ZT Systems acquisition again and the \"go-to-market activities in the Client and Gaming segment.\" This dynamic needs to be monitored in the future, but I expect it to stabilize in the next quarters.\nGenerally, although AMD does need to improve its margins in the future, the company appears financially healthy and should be able to continue investing in its technology without the need to borrow money in the short to medium term.\nThe stock's valuation remains low despite the recent surge\nEven though AMD's stock has increased in price significantly in the last months, the company's valuation still remains low and offers some margin of safety. AMD's 2-year forward P\/E is\nlower\nthan that of most competitors, including Nvidia, Intel, and Arm Holding (\nARM\n). Its EV\/EBITDA ratio is relatively high, but it should improve quickly due to the aforementioned improvements in margins expected in the coming quarters.\nSeeking Alpha\nWith an estimated 3-year average earnings growth of about 32% and a PEG ratio of 1.5, AMD can trade at a P\/E ratio of 48 without being considered overvalued. This would lead to a stock price of $288, based on a 2026 EPS of $6. While this price might be a stretch in the short term, my previous 2025 price target of $223, estimated using a DCF analysis, still holds.\nRisks and key takeaways\nAcknowledging some risks and negatives, AMD continues to face significant competition from Nvidia, which recently\nreported\nanother stellar quarter with $46.74 billion in sales and a growth of 55.6%. Clearly, Nvidia continues to lead the AI hardware market, so AMD needs to keep innovating to remain competitive, which means more R&D expenses. Additionally, there is a chance Intel might start its slow resurgence with the latest\n$5.7 billion grant\nfrom the U.S. government.\nAMD's AI growth also depends on whether any new restrictions related to China will come into effect. In the latest quarter, the company's data center revenue and margins\ndeteriorated\nsignificantly due to export restrictions, which \"effectively eliminated MI308 sales\" to China. Even though AMD does not include China sales in its guidance, the company clearly needs this source of revenue to improve its growth, not to mention better clarity to better manage its inventory.\nAMD Q2 presentation\nStill, despite all the risks and intense competition, AMD remains attractive for investment. With impressive strength in the Client segment, solid Data Center performance, especially with its EPYC CPUs, and a promising future in the Gaming business, AMD should be able to continue growing substantially in the next years. Even though the stock has already doubled from its April lows, AMD still has some margin of safety, with a fair price of about $223, which I estimated previously. Therefore, AMD remains a\nStrong Buy.\n3.54K Followers\nAnalyst’s Disclosure:\nI\/we have a beneficial long position in the shares of AMD, NVDA, MSFT, EA either through stock ownership, options, or other derivatives.\nI wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\nSeeking Alpha's Disclosure:\nPast performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.","attrs_markdown":"[Skip to content](https:\/\/seekingalpha.com\/article\/4817885-amd-there-is-still-time-to-accumulate-shares#content)\n\n[Home page Seeking Alpha - Power to Investors](https:\/\/seekingalpha.com\/#source=source%3Asite_navigation)\n\n- Create Free Account\n- [About Premium](https:\/\/seekingalpha.com\/subscriptions\/premium#source=why_premium%3Aexpanded%3Anavbar_left)\n- [Explore Alpha Picks](https:\/\/subscriptions.seekingalpha.com\/lp_alpha-picks_sub\/#source=explore_alpha_picks%3Aexpanded%3Anavbar_left)\n- [NEW Virtual Analyst Report](https:\/\/seekingalpha.com\/subscriptions\/premium-virtual-analyst-report#source=virtual_analyst_report%3Aexpanded%3Anavbar_left)\n- [FREE Newsletters](https:\/\/seekingalpha.com\/free-investing-newsletters#source=free_newsletters%3Aexpanded%3Anavbar_left)\n\n- [Home](https:\/\/seekingalpha.com\/#source=home%3Aexpanded%3Anavbar_left)\n- [Stock Analysis](https:\/\/seekingalpha.com\/latest-articles#source=analysis%3Aexpanded%3Anavbar_left)\n  \n  ## Stock Analysis\n  - 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[Home](https:\/\/seekingalpha.com\/#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n2. [Stock Ideas](https:\/\/seekingalpha.com\/stock-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n3. [Long Ideas](https:\/\/seekingalpha.com\/stock-ideas\/long-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n4. [Tech](https:\/\/seekingalpha.com\/stock-ideas\/technology#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs)\n# AMD: There Is Still Time To Accumulate Shares\nAug. 29, 2025 10:49 AM ET[Advanced Micro Devices, Inc. (AMD) Stock](https:\/\/seekingalpha.com\/symbol\/AMD#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AAMD), [AMD:CA Stock](https:\/\/seekingalpha.com\/symbol\/AMD:CA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AAMD%3ACA)[NVDA](https:\/\/seekingalpha.com\/symbol\/NVDA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3ANVDA), [NVDA:CA](https:\/\/seekingalpha.com\/symbol\/NVDA:CA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3ANVDA%3ACA), [INTC](https:\/\/seekingalpha.com\/symbol\/INTC#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AINTC), [INTC:CA](https:\/\/seekingalpha.com\/symbol\/INTC:CA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AINTC%3ACA)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/042\/686\/696\/big_pic.png?io=w36)\n\n[Roman Luzgin](https:\/\/seekingalpha.com\/author\/roman-luzgin#source=url_first_level%3Aarticle%7Csection%3Aauthor_brief%3Aroman-luzgin%7Csection_asset%3Aauthor_brief%7Cauthor_name)\n\n3\\.54K Followers\n\nFollow\n\n- 5\n  \n  Share\n- Save\n- Play(15min)\n- [Comments (7)](https:\/\/seekingalpha.com\/article\/4817885-amd-there-is-still-time-to-accumulate-shares#scroll_comments)\n\n## Summary\n- I reiterate my Strong Buy rating for Advanced Micro Devices, Inc., as the market is finally recognizing its AI potential and undervalued stock price.\n- AMD's AI accelerators and EPYC CPUs are gaining traction, with strong partnerships and competitive performance versus Nvidia and Intel.\n- The gaming segment is rebounding, driven by new GPU launches, console partnerships, and upcoming major game releases, supporting long-term growth.\n- AMD's financials are robust, with healthy cash flow, manageable debt, and attractive valuation, offering margin of safety despite recent price gains.\n\n![Digital abstract CPU . AI - Artificial Intelligence concept. Neural network. Machine Learning Concepts. Innovations and technology](https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/2187761440\/image_2187761440.jpg?io=getty-c-w750)\n\nVertigo3d\/E+ via Getty Images\n\nAs I mentioned in [my previous article](https:\/\/seekingalpha.com\/article\/4757364-amd-low-valuation-makes-no-sense#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) on **Advanced Micro Devices, Inc.** ([AMD](https:\/\/seekingalpha.com\/symbol\/AMD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), the stock has never really been \"loved\" by the market in my 8 years of covering it. And at the beginning of 2025, when I last covered the stock, AMD's valuation kept decreasing due to seemingly unfounded skepticism, which did not make sense to me.\n\n[![Roman Luzgin's ratings for AMD](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/22\/42686696-17558687879629757_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/22\/42686696-17558687879629757_origin.png)\n\nSeeking Alpha\n\nNow, since then, AMD stock has finally started to recover, and it seems to be on track to reach my price target of \\$223 by the end of the year, which I expressed in my previous article. While some investors may become cautious about buying AMD shares, since the price has almost doubled over the last four months, the local pullback we are currently seeing presents a solid chance to invest in the company for the medium to long term. Therefore, I reiterate my **Strong Buy** rating for AMD.\n\n## The market is finally recognizing AMD's potential in the AI market\nOf course, one of the primary reasons to be bullish about AMD is its potential in the AI semiconductor market. For some time, the market seemed to discount AMD's efforts in building AI-focused chips, and there was a somewhat strong sentiment that the company had \"lost the war\" to Nvidia ([NVDA](https:\/\/seekingalpha.com\/symbol\/NVDA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). This was clearly a wrong oversimplification of the AI hardware business dynamics, and now the market has finally started to recognize that a) AMD is a strong player in AI semiconductors, and b) being the \"[second best](https:\/\/seekingalpha.com\/article\/4806361-amd-being-second-best-is-plenty-good#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)\" might not even be as bad as some would suggest.\n\nAMD's Data Center revenue only [increased](https:\/\/seekingalpha.com\/filing\/10271237#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) 14% year-over-year in the latest quarter, but the main reason for that was the sale restrictions to China. For more details, there is a [solid roundup by James Foord](https:\/\/seekingalpha.com\/article\/4816881-amd-tech-gap-closing-market-share-will-follow-then-valuation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) here on Seeking Alpha.\n\nIn general, I believe AMD is progressing well in its Instinct AI accelerators, with a solid launch of the MI350 series of products, which [offer](https:\/\/zoomax.com\/low-vision-information\/amd-mi350-vs-nvidia-blackwell-a-comparative-analysis-of-next-generation-chips\/) comparable performance to Nvidia's Blackwell B200, and new [partnerships](https:\/\/seekingalpha.com\/article\/4809195-advanced-micro-devices-inc-amd-q2-2025-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) like the one with Oracle ([ORCL](https:\/\/seekingalpha.com\/symbol\/ORCL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which is building a 27,000-plus node AI cluster with AMD's MI accelerators and EPYC Turin CPUs.\n\n> From a competitive standpoint, MI355 matches or exceeds B200 in critical training and inference workloads and delivers comparable performance to GB200 for key workloads at significantly lower cost and complexity. For upscale inferencing, MI355 delivers up to 40% more tokens per dollar, providing leadership performance and clear TCO advantages.\n\nAMD is also [expected](https:\/\/seekingalpha.com\/article\/4810938-amd-inference-is-the-future-of-ai#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to release MI400 accelerators next year, which should make the company even more competitive in the AI accelerator market. While AMD might not reach Nvidia's level of sales, I believe the company will still benefit immensely from the AI market since its chips provide great inference performance for less money. And because more AI functionality is being integrated into everyday tools used by a lot of people, (it seems like AI is now a part of every single software on the market) the need for powerful and cost-efficient inference chips will only increase over time. This is not to mention AMD is still a big player in the data center CPU market, where the only major competition is the struggling Intel ([INTC](https:\/\/seekingalpha.com\/symbol\/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). (more on that later)\n\nAs a result, AMD does not need to reach Nvidia's market share to still increase its data center sales significantly in the coming years. Since big tech is [expected](https:\/\/finance.yahoo.com\/news\/big-techs-ai-investments-set-to-spike-to-364-billion-in-2025-as-bubble-fears-ease-143203885.html) to spend \\$364 billion on AI CapEx this year alone, even a single additional percentage point in market share could lead to a 10% revenue increase for AMD.\n\n## The company's client and data center businesses continue to benefit from Intel's struggles\nIn the CPU and desktop GPU segments, AMD still has solid room to grow as its primary competitor, Intel, continues to struggle and lose market share. In the desktop market, AMD has already [overtaken](https:\/\/www.cpubenchmark.net\/market_share.html) Intel for the first time since 2006. In Q2, AMD's Client segment surged by another 67% year-over-year, driven by Ryzen desktop CPUs.\n\n[![Desktop market share of AMD vs Intel](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255186492524_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255186492524_origin.png)\n\nPassMark\n\nAMD's laptop market share continues to increase as well, and I expect this dynamic to accelerate in the near future. Here, [my thesis from 2019](https:\/\/seekingalpha.com\/article\/4233705-amd-ces-2019-marks-another-great-but-difficult-year-ahead#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) — that AMD has an impressive mobile offering which should help the company grow its sales significantly — still holds. AMD [seems](https:\/\/seekingalpha.com\/article\/4702926-amd-yet-another-buying-opportunity-rating-upgrade#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to be the processor of choice for many Copilot-powered laptops with local AI inferencing.\n\n[![Laptop market share of AMD vs Intel](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255561906095_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255561906095_origin.png)\n\nPassMark\n\nThe market share expansion is nowhere more evident than in the server market. AMD's Turin EPYC processors are [reported](https:\/\/www.bacloud.com\/en\/blog\/185\/server-cpu-showdown-amd-epyc-turin-vs-intel-xeon-granite-rapids-and-sierra-forest.html) to outperform Intel's latest Xeon chips, so I expect more companies to choose the former in the coming quarters. During its peak in Q4 2021, Intel [generated](https:\/\/seekingalpha.com\/article\/4481877-intel-corporation-2021-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) \\$7.3 billion in Data Center Group sales, so AMD can easily reach comparable levels of revenue in the medium term, unless Intel effects an unlikely quick turnaround. For context, AMD generated \\$3.2 billion from its data center segment. This also includes AI accelerators, which were clearly not offered by Intel in 2021.\n\n[![Server market share of AMD vs Intel](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255743829079_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255743829079_origin.png)\n\nPassMark\n## AMD's gaming business should recover soon\nWhen it comes to the gaming business, AMD has had a difficult couple of years, with this segment of revenue declining significantly. This was one of the biggest issues I saw after the Q4 results — AMD's gaming revenue in the quarter [dropped](https:\/\/seekingalpha.com\/article\/4754845-advanced-micro-devices-inc-2024-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) by 59% year-over-year, and full-year 2024 gaming sales decreased by 58%. This was an alarming dynamic and it likely became the reason why the company started to combine the gaming and client revenue in its reports [starting](https:\/\/seekingalpha.com\/article\/4782558-advanced-micro-devices-inc-2025-q1-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) with Q1 this year.\n\nThere were several reasons for the gaming revenue decrease, such as general [stagnation](https:\/\/best-of-gaming.be\/wp-content\/uploads\/2024\/09\/2024_Newzoo_Global_Games_Market_Report.pdf) in the video games market, the current console generation starting to reach maturity, and intensified competition from Nvidia which offered a better software\/hardware integration for not much more money. However, AMD's gaming revenue has already started to recover in the latest quarter, and I expect the company's gaming business will be fine long term.\n\nIn more detail, in Q2 this year, AMD's gaming sales surged by 73%, from \\$648 million last year to \\$1,122 million now. The company names two major drivers of this growth — a \"large double-digit\" growth in the console semi-custom segment and strong sales of the new Radeon 9000 series graphics cards.\n\nOn the latter, [the review roundup](https:\/\/www.windowscentral.com\/hardware\/cpu-gpu-components\/amd-rdna-4-review-roundup) on AMD's new gaming GPUs is overwhelmingly positive, and major outlets state that \"Nvidia finally has some major competition.\" The company itself claims that the RX 9060 XT GPU offers the \"best performance-per-dollar\" and that the demand outpaced supply in Q2. From my quick glance at the [gamers' sentiment](https:\/\/www.reddit.com\/r\/Amd\/comments\/1j06utb\/all_you_need_for_gaming_amd_rdna_4_and_rx_9000\/) about the new GPUs on Reddit, it seems that AMD delivered exactly what everyone needed at a very affordable price. Therefore, it is likely the positive momentum will continue in the near future, especially with the holiday season coming up, and AMD's gaming GPU business should at least stabilize for the rest of 2025.\n\nWhat should also help AMD is the significant number of big video game titles releasing in the second half of 2025. The [list](https:\/\/www.gamespot.com\/articles\/2025-upcoming-games-release-schedule\/1100-6526471\/) includes such anticipated games as:\n\n- Take-Two's ([TTWO](https:\/\/seekingalpha.com\/symbol\/TTWO#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) new *Mafia* and *Borderlands*: both are very big franchises with strong player counts;\n- EA's ([EA](https:\/\/seekingalpha.com\/symbol\/EA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) *Battlefield 6*: the game [had](https:\/\/www.tomshardware.com\/video-games\/pc-gaming\/battlefield-6-reaches-all-time-record-half-a-million-concurrent-players-on-steam-520k-open-beta-surpasses-every-call-of-duty-ever-made-in-player-count) a record half a million concurrent players during the beta test and is likely to sell well thanks to positive reviews;\n- Microsoft's ([MSFT](https:\/\/seekingalpha.com\/symbol\/MSFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) titles like *The Outer Worlds 2* and the new *Call of Duty*.\n\nThese games are extremely popular, but more importantly, they are hardware-demanding as well, which is likely to prompt many players to upgrade their systems with new CPUs and GPUs. And since AMD has very solid offerings in terms of price-to-performance combination, gaming hardware revenue should see a bump in Q3 and Q4.\n\nAdditionally, in the console business, AMD has recently [signed](https:\/\/news.xbox.com\/en-us\/2025\/06\/19\/xbox-amd-next-generation-xbox\/) another multi-year partnership with Microsoft to develop chips for the next generation of consoles, handheld devices, PCs, and cloud. This collaboration is huge for AMD as it covers a wide range of devices, and cloud gaming is especially interesting here. AMD is also [expected](https:\/\/www.tweaktown.com\/news\/106625\/playstation-6-specs-leak-update-amd-robin-apu-teased-with-powerful-rdna-5-gpu-zen-cpu\/index.html) to power Sony's ([SONY](https:\/\/seekingalpha.com\/symbol\/SONY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) PlayStation 6, as it reportedly [won](https:\/\/www.ign.com\/articles\/sonys-playstation-6-chip-contract-reportedly-in-the-hands-of-amd) a contract in 2022 over Intel.\n\nXbox and PlayStation together [account](https:\/\/www.news.market.us\/gaming-console-statistics\/) for about a 70% share of the console market, which is expected to reach \\$25.3 billion next year and \\$26.7 billion by 2029. Since SoCs are [responsible](https:\/\/www.engadget.com\/2013-11-26-teardown-suggests-xbox-one-manufacturing-cost-of-471.html) for about 20-22% of console costs, AMD should make \\$3.5-4 billion on average from consoles alone each year in the next five years, with additional revenue coming from gaming PCs and cloud sales. This should provide a nice boost of additional revenue to the company that is already doing well in other segments.\n\n## AMD's financial performance is solid with little financial risks\nRegarding AMD's financials, the company appears to be in decent shape, from my point of view. So far this year, AMD's revenue increased by 36% in Q1 and 32% in Q2, and it is [expected](https:\/\/seekingalpha.com\/symbol\/AMD\/earnings\/estimates#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to grow by an average of about 22% in the next three years. The company's earnings are estimated to increase even faster than revenue, with a 3-year average growth of about 32%. AMD also reiterated in its latest earnings call that the margins are expected to improve significantly once there is a sufficient ramp-up in its AI MI-series accelerators and once its China-aimed MI308 GPU inventory is released.\n\nAMD's current ratio (current assets\/current liabilities) was at a healthy level of 2.5 in the latest quarter. AMD's free cash flows were also at a decent level of \\$1 billion in Q2, so there is very little financial risk here, especially with \\$5.8 billion in cash and equivalents and just \\$3.2 billion in long-term debt, which the company raised recently mostly just to cover the acquisition of ZT Systems.\n\nAdditionally here, the company continues to increase its R\\&D costs in a healthy way, with a 20% growth in Q2. AMD's SG\\&A expenses did surprisingly surge by 55% in the quarter, but it seems to have been related to \\$83 million in transaction costs related to the ZT Systems acquisition again and the \"go-to-market activities in the Client and Gaming segment.\" This dynamic needs to be monitored in the future, but I expect it to stabilize in the next quarters.\n\nGenerally, although AMD does need to improve its margins in the future, the company appears financially healthy and should be able to continue investing in its technology without the need to borrow money in the short to medium term.\n\n## The stock's valuation remains low despite the recent surge\nEven though AMD's stock has increased in price significantly in the last months, the company's valuation still remains low and offers some margin of safety. AMD's 2-year forward P\/E is [lower](https:\/\/seekingalpha.com\/comparison\/new\/MCUyQ2FtZCUyQ252ZGElMkNpbnRjJTJDcWNvbSUyQ2FybQ==#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) than that of most competitors, including Nvidia, Intel, and Arm Holding ([ARM](https:\/\/seekingalpha.com\/symbol\/ARM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). Its EV\/EBITDA ratio is relatively high, but it should improve quickly due to the aforementioned improvements in margins expected in the coming quarters.\n\n[![Valuation comparison between AMD and peers](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-17564232183525448_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-17564232183525448_origin.png)\n\nSeeking Alpha\n\nWith an estimated 3-year average earnings growth of about 32% and a PEG ratio of 1.5, AMD can trade at a P\/E ratio of 48 without being considered overvalued. This would lead to a stock price of \\$288, based on a 2026 EPS of \\$6. While this price might be a stretch in the short term, my previous 2025 price target of \\$223, estimated using a DCF analysis, still holds.\n\n## Risks and key takeaways\nAcknowledging some risks and negatives, AMD continues to face significant competition from Nvidia, which recently [reported](https:\/\/seekingalpha.com\/news\/4489760-nvidia-non-gaap-eps-of-1_05-beats-by-0_04-revenue-of-46_74b-beats-by-610m#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) another stellar quarter with \\$46.74 billion in sales and a growth of 55.6%. Clearly, Nvidia continues to lead the AI hardware market, so AMD needs to keep innovating to remain competitive, which means more R\\&D expenses. Additionally, there is a chance Intel might start its slow resurgence with the latest [\\$5.7 billion grant](https:\/\/seekingalpha.com\/news\/4490161-intel-receives-57b-of-us-stake-from-chips-grants-cfo#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) from the U.S. government.\n\nAMD's AI growth also depends on whether any new restrictions related to China will come into effect. In the latest quarter, the company's data center revenue and margins [deteriorated](https:\/\/seekingalpha.com\/article\/4809196-advanced-micro-devices-inc-2025-q2-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) significantly due to export restrictions, which \"effectively eliminated MI308 sales\" to China. Even though AMD does not include China sales in its guidance, the company clearly needs this source of revenue to improve its growth, not to mention better clarity to better manage its inventory.\n\n[![AMD's data center revenue in Q2 2025](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-1756424549626482_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-1756424549626482_origin.png)\n\nAMD Q2 presentation\n\nStill, despite all the risks and intense competition, AMD remains attractive for investment. With impressive strength in the Client segment, solid Data Center performance, especially with its EPYC CPUs, and a promising future in the Gaming business, AMD should be able to continue growing substantially in the next years. Even though the stock has already doubled from its April lows, AMD still has some margin of safety, with a fair price of about \\$223, which I estimated previously. Therefore, AMD remains a **Strong Buy.**\n\nThis article was written by\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/042\/686\/696\/big_pic.png?io=w36)\n\n[Roman Luzgin](https:\/\/seekingalpha.com\/author\/roman-luzgin#source=url_first_level%3Aarticle%7Csection%3Aauthor_root%3Aroman-luzgin%7Csection_asset%3Aauthor_root%7Cauthor_name)\n\n3\\.54K Followers\n\nFollow\n\nI write about growth opportunities in different sectors related to technology, providing analyses of fundamentals that are driven by current and future trends. Senior Data Analyst by day, I am building and managing my own portfolio of tech-related securities, which to date has consistently beaten the market.\n\nShow more\n\nShow more\n\n**Analyst’s Disclosure:** I\/we have a beneficial long position in the shares of AMD, NVDA, MSFT, EA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\n\n**Seeking Alpha's Disclosure:** Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.\n\n- Like\n- Share\n- Print\n- [Comments (7)](https:\/\/seekingalpha.com\/article\/4817885-amd-there-is-still-time-to-accumulate-shares#scroll_comments)\n\n### Recommended For You\n![](https:\/\/seekingalpha.com\/images\/users_profile\/062\/467\/668\/big_pic.png?io=w36)\n\n### [AMD: The Trojan Horse In The Server Room](https:\/\/seekingalpha.com\/article\/4882644-amd-the-trojan-horse-in-the-server-room#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A1)\nJoseph Montezuma\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/049\/853\/134\/big_pic.png?io=w36)\n\n### [AMD's Next AI Catalyst: MI450](https:\/\/seekingalpha.com\/article\/4882460-amds-next-ai-catalyst-mi450#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A2)\nYiannis Zourmpanos\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/051\/630\/113\/big_pic.png?io=w36)\n\n### [Arista Networks: All Ready To Storm To New Highs (Upgrade)](https:\/\/seekingalpha.com\/article\/4882278-arista-networks-all-ready-to-storm-to-new-highs-upgrade#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A3)\nJR Research\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/054\/998\/043\/big_pic.png?io=w36)\n\n### [CoreWeave's High-Growth Cadence Proven - Strong Buy For Contrarians](https:\/\/seekingalpha.com\/article\/4882844-coreweaves-high-growth-cadence-proven-strong-buy-for-contrarians#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A4)\nJuxtaposed Ideas\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/063\/243\/649\/big_pic.png?io=w36)\n\n### [Sandisk May Not Be Peaking Yet - Buy](https:\/\/seekingalpha.com\/article\/4882152-sandisk-may-not-be-peaking-yet-buy#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A5)\nNova Capital\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/063\/126\/192\/big_pic.png?io=w36)\n\n### [Synaptics: A Better Business, But Still Waiting For The AI Ramp](https:\/\/seekingalpha.com\/article\/4882572-synaptics-a-better-business-but-still-waiting-for-the-ai-ramp#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A6)\nTranzoro Investments\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/592\/531\/big_pic.png?io=w36)\n\n### [Microsoft: Be Greedy When Others Are Fearful](https:\/\/seekingalpha.com\/article\/4882156-microsoft-be-greedy-when-others-are-fearful#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A7)\nRI Research\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/061\/437\/108\/big_pic.png?io=w36)\n\n### [Sanmina: ZT Systems Doubles Revenue, Margins Hold, And The Selloff Is Unjustified](https:\/\/seekingalpha.com\/article\/4882433-sanmina-zt-systems-doubles-revenue-margins-hold-and-the-selloff-is-unjustified#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A8)\nEmmanuel Onwusah\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/062\/060\/938\/big_pic.png?io=w36)\n\n### [Adobe Q1: The Most Absurd Valuation In Software I'm Buying](https:\/\/seekingalpha.com\/article\/4882682-adobe-q1-the-most-absurd-valuation-in-software-im-buying#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A9)\nJulia Ostian\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/051\/760\/760\/big_pic.png?io=w36)\n\n### [Nebius: Demand Is There, But CapEx Is The Key Variable](https:\/\/seekingalpha.com\/article\/4882650-nebius-demand-is-there-and-capex-is-to-watch#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A10)\nTech Stock Pros\n\n### Comments (7)\nNewest\n\nIf you type a company or ETF ticker symbol in capital letters we will automatically link to the symbol page. You can remove the link by deleting the \\$ in the comment.\n\nPublish\n\ns\n\n[stocks for profit](https:\/\/seekingalpha.com\/user\/15842082)\n\n31 Aug. 2025, 4:19 AM\n\nPremium\n\n[Comments (7.41K)](https:\/\/seekingalpha.com\/user\/15842082)\n\n\\|\n\n\\+ Follow\n\nTitle - \"AMD: There is Still Time To Accumulate Shares\"\n\nIndeed. AMD is a long term buy and hold.\n\nLook at the progress AMD has made in recent years. Going from zilch to 30% market share against massive incumbent INTC. Compare the stock price of AMD versus INTC over that period.\n\nAMD is much stronger and setting its sight on NVDA. Same thing could happen again. AMD has much to gain and NVDA has much to lose. Growing AMD's market share from 5% to 15% is a triple. Another triple occurs going from 15% to 45%. Demand for AI is insatiable so it's open field running for AMD not trench warfare. There's lots of room for both companies. Industry wants choice so this will help AMD. Expect a more evenly split AI market in two years. Huge growth ahead for AMD.\n\nBest time to plant a tree was years ago. Next best time is now.\n\nReply\n\nLike\n\n(6)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/048\/220\/745\/small_pic.png?t=38c8d1a38a)\n\n[Zeusy Zeus](https:\/\/seekingalpha.com\/user\/48220745)\n\n03 Sep. 2025, 2:44 AM\n\n[Comments (2.31K)](https:\/\/seekingalpha.com\/user\/48220745)\n\n\\|\n\n\\+ Follow\n\n@stocks for profit , I mostly agree. While no one can truly compete with Nvidia and the premium products and services they offer users, companies will be looking for ways to get these at a discount, and that’s what AMD will be able to provide. I believe the performance will always fall short of Nvidia’s, but that’s baked into the discount companies will get. Not all of them need the latest and greatest throughput performance.\n\nReply\n\nLike\n\ns\n\n[stocks for profit](https:\/\/seekingalpha.com\/user\/15842082)\n\n03 Sep. 2025, 5:23 AM\n\nPremium\n\n[Comments (7.41K)](https:\/\/seekingalpha.com\/user\/15842082)\n\n\\|\n\n\\+ Follow\n\n[@Zeusy Zeus](https:\/\/seekingalpha.com\/user\/48220745#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4817885%7Ccomment_id%3A101009781) - \"... performance will always fall short of Nvidia’s...\"\n\nDon't be so sure. AMD's roadmap is driven by a relentless chiplet design cadence. NVDA will face a tsunami of ever better MI series products just like INTC was overwhelmed by Zen.\n\nFolks look at MI300 and misjudge what's coming next. MI300 series suffers from its HPC design optimized for exascale super El Capitan. Lots of transistors in MI300 are dedicated to FP64 and FP32. It's certain MI400 will dedicate many more transistors to FP16 and lower precision compute. But AMD is not stopping there. Another avenue for improving performance is compact core design for GPU similar to Zen 4c for CPU in Bergamo. Such dense compute is more easily done with chiplets because of better yield. Also GPU cache can be moved vertically off chip much like what happened with Genoa-X for CPU. This will allow significantly more space on the GPU dedicated for compute.\n\nAbout a year from now MI400 will be released. Advanced chiplet design and support for datacenter-scale network connectivity at the silicon level will make MI400 at least as powerful as NVDA's upcoming Rubin. Software for AMD will be better and contributions by engineers from the ZT Systems acquisition will make MI400 a compelling value proposition for industry players looking for choice.\n\nAt AMD's Advancing AI event in June Lisa said the MI400 series has a 10x performance gain over MI355X. OpenAI CEO Sam Altman is amazed with MI450 specs, values AMD partnership, and hugged Lisa. It was also mentioned by Lisa there's more stuff coming with MI500 and growing a collaborative AI ecosystem. Considering low-key Lisa all that is pretty provocative.\n\nAI beast MI400 will level the playing field. It's likely that MI500 will totally wreck NVDA's dream of AI domination.\n\nReply\n\nLike\n\n(4)\n\nLiked By Analyst\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/012\/947\/631\/small_pic.png?t=cb21c1aa47)\n\n[tufttugger](https:\/\/seekingalpha.com\/user\/12947631)\n\n03 Sep. 2025, 12:03 PM\n\nPremium\n\n[Comments (10.11K)](https:\/\/seekingalpha.com\/user\/12947631)\n\n\\|\n\n\\+ Follow\n\n[@stocks for profit](https:\/\/seekingalpha.com\/user\/15842082#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4817885%7Ccomment_id%3A101012408) AMD is doing amazing things with memory. They know it’s a bottleneck and have worked on IP to reduce that bottleneck for years. Whether it’s the invention of HBM memory or infinity cache, to laddered cache and memory compression, or 3D cache (all combined), they are adamant on keeping that edge and feeding their cores.\n\nReply\n\nLike\n\n(1)\n\nS\n\n[Siskiyougold](https:\/\/seekingalpha.com\/user\/44452676)\n\n29 Aug. 2025, 12:40 PM\n\nPremium\n\n[Investing Group](https:\/\/seekingalpha.com\/checkout\/mp_1026#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group)\n\n[Comments (1.45K)](https:\/\/seekingalpha.com\/user\/44452676)\n\n\\|\n\n\\+ Follow\n\nI would mostly agree with the analysis, I don't see AMD hitting \\$223 this year. But probably early next year I could see it pushing past \\$223. IF they are able to ramp up MI355 and also release the MI400 early next year.  \nI find the AMD \/ IBM partnership to be a VERY promising development \\!\n\nReply\n\nLike\n\n(8)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/040\/207\/546\/small_pic.png?t=97339935ab)\n\n[siola.68](https:\/\/seekingalpha.com\/user\/40207546)\n\n29 Aug. 2025, 10:53 AM\n\nPremium\n\n[Comments (783)](https:\/\/seekingalpha.com\/user\/40207546)\n\n\\|\n\n\\+ Follow\n\nAMD, hold,sell\n\nReply\n\nLike\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/048\/220\/745\/small_pic.png?t=38c8d1a38a)\n\n[Zeusy Zeus](https:\/\/seekingalpha.com\/user\/48220745)\n\n03 Sep. 2025, 2:41 AM\n\n[Comments (2.31K)](https:\/\/seekingalpha.com\/user\/48220745)\n\n\\|\n\n\\+ Follow\n\n[@siola.68](https:\/\/seekingalpha.com\/user\/40207546#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4817885%7Ccomment_id%3A101009580) What is it a hold or a sell? Couldn’t make up your mind so you wrote both?\n\nReply\n\nLike\n\n(1)\n\nAdd A Comment\n\nDisagree with this article? [Submit your own](https:\/\/about.seekingalpha.com\/become-an-analyst).\n\nTo report a factual error in this article,\n\nclick here\n\n.\n\nYour feedback matters to us\\!\n\n### About AMD Stock\n| Symbol | Last Price | % Chg |\n|---|---|---|\n| [AMD](https:\/\/seekingalpha.com\/symbol\/AMD#source=first_level_url%3Aarticle%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3AAMD) Advanced Micro Devices, Inc. | 196\\.58 | 1\\.65% |\n| Post | 196\\.88 | 0\\.15% |\n\n- 1D\n- 5D\n- 1M\n- 6M\n- 1Y\n- 5Y\n- 10Y\n\n###### Chart\nCombination chart with 2 data series.\n\nView as data table, Chart\n\nThe chart has 1 X axis displaying Time. Data ranges from 2025-03-17 00:00:00 to 2026-03-16 00:00:00.\n\nThe chart has 1 Y axis displaying values. Data ranges from 78.21 to 264.33.\n\nCreated with Highcharts 12.5.0\n\nMay '25\n\nAug '25\n\nOct '25\n\nFeb '26\n\n0\n\n200\n\n400\n\nEnd of interactive chart.\n\nMarket Cap\n\n\\$315.31B\n\nPE (FWD)\n\n29\\.13\n\nYield\n\n\\-\n\nRev Growth (YoY)\n\n34\\.34%\n\nShort Interest\n\n2\\.12%\n\nPrev. Close\n\n\\$193.39\n\n[amd Summary](https:\/\/seekingalpha.com\/symbol\/AMD\/virtual_analyst_report)\n\nCompare to Peers\n\n### More on AMD\n### [AMD, Celestica team up to bring Helios rack-scale AI platform to market](https:\/\/seekingalpha.com\/news\/4564749-amd-celestica-team-up-to-bring-helios-rack-scale-ai-platform-to-market#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined)\n![](https:\/\/seekingalpha.com\/images\/users_profile\/062\/467\/668\/big_pic.png?io=w36)\n\n### [AMD: The Trojan Horse In The Server Room](https:\/\/seekingalpha.com\/article\/4882644-amd-the-trojan-horse-in-the-server-room#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined)\n[Joseph Montezuma](https:\/\/seekingalpha.com\/author\/joseph-montezuma#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined)\n\n![](https:\/\/seekingalpha.com\/images\/users_profile\/049\/853\/134\/big_pic.png?io=w36)\n\n### [AMD's Next AI Catalyst: MI450](https:\/\/seekingalpha.com\/article\/4882460-amds-next-ai-catalyst-mi450#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined)\n[Yiannis Zourmpanos](https:\/\/seekingalpha.com\/author\/yiannis-zourmpanos#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined)\n### [AMD ownership increases, Synopsys sees a decrease as fund managers alter portfolios](https:\/\/seekingalpha.com\/news\/4564454-amd-ownership-increases-synopsys-sees-a-decrease-as-fund-managers-alter-portfolios#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined)\n\n### Related Stocks\n| Symbol | Last Price | % Chg |\n|---|---|---|\n| [AMD](https:\/\/seekingalpha.com\/symbol\/AMD#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3Aamd) AMD | 196\\.58 | 1\\.65% |\n| Post: | 196\\.88 | 0\\.15% |\n| [AMD:CA](https:\/\/seekingalpha.com\/symbol\/AMD:CA#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A2%7Csymbol%3Aamd%3Aca) AMD:CA | 35\\.98 | 1\\.67% |\n\n- 1D\n- 5D\n- 1M\n- 6M\n- 1Y\n- 5Y\n- 10Y\n\n###### Chart\nLine chart with 2 lines.\n\nView as data table, Chart\n\nThe chart has 1 X axis displaying Time. Data ranges from 2026-03-11 09:30:00 to 2026-03-16 16:00:00.\n\nThe chart has 1 Y axis displaying values. Data ranges from -7.2 to 0.\n\nCreated with Highcharts 12.5.0\n\nMar 11\n\nMar 12\n\nMar 13\n\nMar 16\n\n\\-10%\n\n\\-5%\n\n0%\n\nEnd of interactive chart.\n\nCompare\n\n### Trending Analysis\n- ![Lakshya Singh profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/062\/778\/052\/big_pic.png?io=w36&t=da7849fb35)\n  \n  ### [Micron: Memory Downcycle Sooner Than Expected](https:\/\/seekingalpha.com\/article\/4882771-micron-memory-downcycle-sooner-than-expected#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A1)\n- ![Summit Research profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/053\/884\/093\/big_pic.png?io=w36&t=74faf93cec)\n  \n  ### [Sandisk: This Nvidia GTC 2026 Announcement Could Be A Game Changer](https:\/\/seekingalpha.com\/article\/4882807-sandisk-this-nvidia-gtc-2026-announcement-could-be-a-gamechanger#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A2)\n- ![Gen Alpha profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/049\/839\/830\/big_pic.png?io=w36&t=46954424f5)\n  \n  ### [I'm Buying Dividend Aristocrats At Bargain Basement Prices](https:\/\/seekingalpha.com\/article\/4882694-medtronic-kimberly-clark-stock-buying-dividend-aristocrats-bargain-basement-prices#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A3)\n- ![Samuel Smith profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/047\/771\/937\/big_pic.png?io=w36&t=3fd8abfe9a)\n  \n  ### [14% Yielding And Growing Lenders To Buy For Big Upside Potential](https:\/\/seekingalpha.com\/article\/4882841-14-percent-yielding-and-growing-lenders-buy-for-upside-potential#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A4)\n- ![Daniel Jones profile picture](https:\/\/seekingalpha.com\/images\/users_profile\/009\/866\/571\/big_pic.png?io=w36&t=079d726f21)\n  \n  ### [Recession Inbound? The Warning Signs Are Everywhere](https:\/\/seekingalpha.com\/article\/4882638-recession-inbound-the-warning-signs-are-everywhere#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cline%3A5)\n\n[See All Analysis »](https:\/\/seekingalpha.com\/latest-articles#source=first_level_url%3Aarticle%7Csection%3Atrending_articles%7Cbutton%3Amore)\n\n### Trending News\n- 1\n  \n  ### [Huang says OpenClaw to transform every SaaS into agentic company: GTC](https:\/\/seekingalpha.com\/news\/4564980-huang-says-openclaw-to-transform-every-saas-into-agentic-company-gtc#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A1)\n- 2\n  \n  ### [Volkswagen turns to Chinese chipmakers, sidelines Nvidia in bid to catch up in China EV race: report](https:\/\/seekingalpha.com\/news\/4565035-volkswagen-turns-to-chinese-chipmakers-sidelines-nvidia-in-bid-to-catch-up-in-china-ev-race-report#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A2)\n- 3\n  \n  ### [Google explores liquid cooling equipment deals with Envicool, other Chinese firms: report](https:\/\/seekingalpha.com\/news\/4565057-google-explores-liquid-cooling-equipment-deals-with-envicool-other-chinese-firms-report#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A3)\n- 4\n  \n  ### [Big tech carbon credit buys soar as AI race heats up, led by Microsoft](https:\/\/seekingalpha.com\/news\/4565050-big-tech-carbon-credit-buys-soar-as-ai-race-heats-up-led-by-microsoft#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A4)\n- 5\n  \n  ### [India’s economy may be 22% smaller than reported, paper says](https:\/\/seekingalpha.com\/news\/4564807-indias-economy-may-be-22-smaller-than-reported-paper-says#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cline%3A5)\n\n[See All News »](https:\/\/seekingalpha.com\/market-news#source=first_level_url%3Aarticle%7Csection%3Atrending_news%7Cbutton%3Amore)\n\nTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.\n\nIs this happening to you frequently? Please [report it on our feedback forum.](https:\/\/help.seekingalpha.com\/kb-tickets\/new)\n\nIf you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.\n\n![](https:\/\/seekingalpha.com\/_sa_track\/samw\/noscript?noscript[disabled]=true)\n\n![](https:\/\/www.facebook.com\/tr?id=228550053985270&ev=PageView&noscript=1)","attrs_readable_markdown":"![Digital abstract CPU . AI - Artificial Intelligence concept. Neural network. Machine Learning Concepts. Innovations and technology](https:\/\/static.seekingalpha.com\/cdn\/s3\/uploads\/getty_images\/2187761440\/image_2187761440.jpg?io=getty-c-w750)\n\nVertigo3d\/E+ via Getty Images\n\nAs I mentioned in [my previous article](https:\/\/seekingalpha.com\/article\/4757364-amd-low-valuation-makes-no-sense#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) on **Advanced Micro Devices, Inc.** ([AMD](https:\/\/seekingalpha.com\/symbol\/AMD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), the stock has never really been \"loved\" by the market in my 8 years of covering it. And at the beginning of 2025, when I last covered the stock, AMD's valuation kept decreasing due to seemingly unfounded skepticism, which did not make sense to me.\n\n[![Roman Luzgin's ratings for AMD](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/22\/42686696-17558687879629757_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/22\/42686696-17558687879629757_origin.png)\n\nSeeking Alpha\n\nNow, since then, AMD stock has finally started to recover, and it seems to be on track to reach my price target of \\$223 by the end of the year, which I expressed in my previous article. While some investors may become cautious about buying AMD shares, since the price has almost doubled over the last four months, the local pullback we are currently seeing presents a solid chance to invest in the company for the medium to long term. Therefore, I reiterate my **Strong Buy** rating for AMD.\n\n## The market is finally recognizing AMD's potential in the AI market\nOf course, one of the primary reasons to be bullish about AMD is its potential in the AI semiconductor market. For some time, the market seemed to discount AMD's efforts in building AI-focused chips, and there was a somewhat strong sentiment that the company had \"lost the war\" to Nvidia ([NVDA](https:\/\/seekingalpha.com\/symbol\/NVDA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). This was clearly a wrong oversimplification of the AI hardware business dynamics, and now the market has finally started to recognize that a) AMD is a strong player in AI semiconductors, and b) being the \"[second best](https:\/\/seekingalpha.com\/article\/4806361-amd-being-second-best-is-plenty-good#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)\" might not even be as bad as some would suggest.\n\nAMD's Data Center revenue only [increased](https:\/\/seekingalpha.com\/filing\/10271237#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) 14% year-over-year in the latest quarter, but the main reason for that was the sale restrictions to China. For more details, there is a [solid roundup by James Foord](https:\/\/seekingalpha.com\/article\/4816881-amd-tech-gap-closing-market-share-will-follow-then-valuation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) here on Seeking Alpha.\n\nIn general, I believe AMD is progressing well in its Instinct AI accelerators, with a solid launch of the MI350 series of products, which [offer](https:\/\/zoomax.com\/low-vision-information\/amd-mi350-vs-nvidia-blackwell-a-comparative-analysis-of-next-generation-chips\/) comparable performance to Nvidia's Blackwell B200, and new [partnerships](https:\/\/seekingalpha.com\/article\/4809195-advanced-micro-devices-inc-amd-q2-2025-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) like the one with Oracle ([ORCL](https:\/\/seekingalpha.com\/symbol\/ORCL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which is building a 27,000-plus node AI cluster with AMD's MI accelerators and EPYC Turin CPUs.\n\n> From a competitive standpoint, MI355 matches or exceeds B200 in critical training and inference workloads and delivers comparable performance to GB200 for key workloads at significantly lower cost and complexity. For upscale inferencing, MI355 delivers up to 40% more tokens per dollar, providing leadership performance and clear TCO advantages.\n\nAMD is also [expected](https:\/\/seekingalpha.com\/article\/4810938-amd-inference-is-the-future-of-ai#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to release MI400 accelerators next year, which should make the company even more competitive in the AI accelerator market. While AMD might not reach Nvidia's level of sales, I believe the company will still benefit immensely from the AI market since its chips provide great inference performance for less money. And because more AI functionality is being integrated into everyday tools used by a lot of people, (it seems like AI is now a part of every single software on the market) the need for powerful and cost-efficient inference chips will only increase over time. This is not to mention AMD is still a big player in the data center CPU market, where the only major competition is the struggling Intel ([INTC](https:\/\/seekingalpha.com\/symbol\/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). (more on that later)\n\nAs a result, AMD does not need to reach Nvidia's market share to still increase its data center sales significantly in the coming years. Since big tech is [expected](https:\/\/finance.yahoo.com\/news\/big-techs-ai-investments-set-to-spike-to-364-billion-in-2025-as-bubble-fears-ease-143203885.html) to spend \\$364 billion on AI CapEx this year alone, even a single additional percentage point in market share could lead to a 10% revenue increase for AMD.\n\n## The company's client and data center businesses continue to benefit from Intel's struggles\nIn the CPU and desktop GPU segments, AMD still has solid room to grow as its primary competitor, Intel, continues to struggle and lose market share. In the desktop market, AMD has already [overtaken](https:\/\/www.cpubenchmark.net\/market_share.html) Intel for the first time since 2006. In Q2, AMD's Client segment surged by another 67% year-over-year, driven by Ryzen desktop CPUs.\n\n[![Desktop market share of AMD vs Intel](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255186492524_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255186492524_origin.png)\n\nPassMark\n\nAMD's laptop market share continues to increase as well, and I expect this dynamic to accelerate in the near future. Here, [my thesis from 2019](https:\/\/seekingalpha.com\/article\/4233705-amd-ces-2019-marks-another-great-but-difficult-year-ahead#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) — that AMD has an impressive mobile offering which should help the company grow its sales significantly — still holds. AMD [seems](https:\/\/seekingalpha.com\/article\/4702926-amd-yet-another-buying-opportunity-rating-upgrade#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to be the processor of choice for many Copilot-powered laptops with local AI inferencing.\n\n[![Laptop market share of AMD vs Intel](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255561906095_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255561906095_origin.png)\n\nPassMark\n\nThe market share expansion is nowhere more evident than in the server market. AMD's Turin EPYC processors are [reported](https:\/\/www.bacloud.com\/en\/blog\/185\/server-cpu-showdown-amd-epyc-turin-vs-intel-xeon-granite-rapids-and-sierra-forest.html) to outperform Intel's latest Xeon chips, so I expect more companies to choose the former in the coming quarters. During its peak in Q4 2021, Intel [generated](https:\/\/seekingalpha.com\/article\/4481877-intel-corporation-2021-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) \\$7.3 billion in Data Center Group sales, so AMD can easily reach comparable levels of revenue in the medium term, unless Intel effects an unlikely quick turnaround. For context, AMD generated \\$3.2 billion from its data center segment. This also includes AI accelerators, which were clearly not offered by Intel in 2021.\n\n[![Server market share of AMD vs Intel](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255743829079_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/25\/42686696-17561255743829079_origin.png)\n\nPassMark\n## AMD's gaming business should recover soon\nWhen it comes to the gaming business, AMD has had a difficult couple of years, with this segment of revenue declining significantly. This was one of the biggest issues I saw after the Q4 results — AMD's gaming revenue in the quarter [dropped](https:\/\/seekingalpha.com\/article\/4754845-advanced-micro-devices-inc-2024-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) by 59% year-over-year, and full-year 2024 gaming sales decreased by 58%. This was an alarming dynamic and it likely became the reason why the company started to combine the gaming and client revenue in its reports [starting](https:\/\/seekingalpha.com\/article\/4782558-advanced-micro-devices-inc-2025-q1-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) with Q1 this year.\n\nThere were several reasons for the gaming revenue decrease, such as general [stagnation](https:\/\/best-of-gaming.be\/wp-content\/uploads\/2024\/09\/2024_Newzoo_Global_Games_Market_Report.pdf) in the video games market, the current console generation starting to reach maturity, and intensified competition from Nvidia which offered a better software\/hardware integration for not much more money. However, AMD's gaming revenue has already started to recover in the latest quarter, and I expect the company's gaming business will be fine long term.\n\nIn more detail, in Q2 this year, AMD's gaming sales surged by 73%, from \\$648 million last year to \\$1,122 million now. The company names two major drivers of this growth — a \"large double-digit\" growth in the console semi-custom segment and strong sales of the new Radeon 9000 series graphics cards.\n\nOn the latter, [the review roundup](https:\/\/www.windowscentral.com\/hardware\/cpu-gpu-components\/amd-rdna-4-review-roundup) on AMD's new gaming GPUs is overwhelmingly positive, and major outlets state that \"Nvidia finally has some major competition.\" The company itself claims that the RX 9060 XT GPU offers the \"best performance-per-dollar\" and that the demand outpaced supply in Q2. From my quick glance at the [gamers' sentiment](https:\/\/www.reddit.com\/r\/Amd\/comments\/1j06utb\/all_you_need_for_gaming_amd_rdna_4_and_rx_9000\/) about the new GPUs on Reddit, it seems that AMD delivered exactly what everyone needed at a very affordable price. Therefore, it is likely the positive momentum will continue in the near future, especially with the holiday season coming up, and AMD's gaming GPU business should at least stabilize for the rest of 2025.\n\nWhat should also help AMD is the significant number of big video game titles releasing in the second half of 2025. The [list](https:\/\/www.gamespot.com\/articles\/2025-upcoming-games-release-schedule\/1100-6526471\/) includes such anticipated games as:\n\n- Take-Two's ([TTWO](https:\/\/seekingalpha.com\/symbol\/TTWO#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) new *Mafia* and *Borderlands*: both are very big franchises with strong player counts;\n- EA's ([EA](https:\/\/seekingalpha.com\/symbol\/EA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) *Battlefield 6*: the game [had](https:\/\/www.tomshardware.com\/video-games\/pc-gaming\/battlefield-6-reaches-all-time-record-half-a-million-concurrent-players-on-steam-520k-open-beta-surpasses-every-call-of-duty-ever-made-in-player-count) a record half a million concurrent players during the beta test and is likely to sell well thanks to positive reviews;\n- Microsoft's ([MSFT](https:\/\/seekingalpha.com\/symbol\/MSFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) titles like *The Outer Worlds 2* and the new *Call of Duty*.\n\nThese games are extremely popular, but more importantly, they are hardware-demanding as well, which is likely to prompt many players to upgrade their systems with new CPUs and GPUs. And since AMD has very solid offerings in terms of price-to-performance combination, gaming hardware revenue should see a bump in Q3 and Q4.\n\nAdditionally, in the console business, AMD has recently [signed](https:\/\/news.xbox.com\/en-us\/2025\/06\/19\/xbox-amd-next-generation-xbox\/) another multi-year partnership with Microsoft to develop chips for the next generation of consoles, handheld devices, PCs, and cloud. This collaboration is huge for AMD as it covers a wide range of devices, and cloud gaming is especially interesting here. AMD is also [expected](https:\/\/www.tweaktown.com\/news\/106625\/playstation-6-specs-leak-update-amd-robin-apu-teased-with-powerful-rdna-5-gpu-zen-cpu\/index.html) to power Sony's ([SONY](https:\/\/seekingalpha.com\/symbol\/SONY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) PlayStation 6, as it reportedly [won](https:\/\/www.ign.com\/articles\/sonys-playstation-6-chip-contract-reportedly-in-the-hands-of-amd) a contract in 2022 over Intel.\n\nXbox and PlayStation together [account](https:\/\/www.news.market.us\/gaming-console-statistics\/) for about a 70% share of the console market, which is expected to reach \\$25.3 billion next year and \\$26.7 billion by 2029. Since SoCs are [responsible](https:\/\/www.engadget.com\/2013-11-26-teardown-suggests-xbox-one-manufacturing-cost-of-471.html) for about 20-22% of console costs, AMD should make \\$3.5-4 billion on average from consoles alone each year in the next five years, with additional revenue coming from gaming PCs and cloud sales. This should provide a nice boost of additional revenue to the company that is already doing well in other segments.\n\n## AMD's financial performance is solid with little financial risks\nRegarding AMD's financials, the company appears to be in decent shape, from my point of view. So far this year, AMD's revenue increased by 36% in Q1 and 32% in Q2, and it is [expected](https:\/\/seekingalpha.com\/symbol\/AMD\/earnings\/estimates#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to grow by an average of about 22% in the next three years. The company's earnings are estimated to increase even faster than revenue, with a 3-year average growth of about 32%. AMD also reiterated in its latest earnings call that the margins are expected to improve significantly once there is a sufficient ramp-up in its AI MI-series accelerators and once its China-aimed MI308 GPU inventory is released.\n\nAMD's current ratio (current assets\/current liabilities) was at a healthy level of 2.5 in the latest quarter. AMD's free cash flows were also at a decent level of \\$1 billion in Q2, so there is very little financial risk here, especially with \\$5.8 billion in cash and equivalents and just \\$3.2 billion in long-term debt, which the company raised recently mostly just to cover the acquisition of ZT Systems.\n\nAdditionally here, the company continues to increase its R\\&D costs in a healthy way, with a 20% growth in Q2. AMD's SG\\&A expenses did surprisingly surge by 55% in the quarter, but it seems to have been related to \\$83 million in transaction costs related to the ZT Systems acquisition again and the \"go-to-market activities in the Client and Gaming segment.\" This dynamic needs to be monitored in the future, but I expect it to stabilize in the next quarters.\n\nGenerally, although AMD does need to improve its margins in the future, the company appears financially healthy and should be able to continue investing in its technology without the need to borrow money in the short to medium term.\n\n## The stock's valuation remains low despite the recent surge\nEven though AMD's stock has increased in price significantly in the last months, the company's valuation still remains low and offers some margin of safety. AMD's 2-year forward P\/E is [lower](https:\/\/seekingalpha.com\/comparison\/new\/MCUyQ2FtZCUyQ252ZGElMkNpbnRjJTJDcWNvbSUyQ2FybQ==#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) than that of most competitors, including Nvidia, Intel, and Arm Holding ([ARM](https:\/\/seekingalpha.com\/symbol\/ARM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). Its EV\/EBITDA ratio is relatively high, but it should improve quickly due to the aforementioned improvements in margins expected in the coming quarters.\n\n[![Valuation comparison between AMD and peers](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-17564232183525448_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-17564232183525448_origin.png)\n\nSeeking Alpha\n\nWith an estimated 3-year average earnings growth of about 32% and a PEG ratio of 1.5, AMD can trade at a P\/E ratio of 48 without being considered overvalued. This would lead to a stock price of \\$288, based on a 2026 EPS of \\$6. While this price might be a stretch in the short term, my previous 2025 price target of \\$223, estimated using a DCF analysis, still holds.\n\n## Risks and key takeaways\nAcknowledging some risks and negatives, AMD continues to face significant competition from Nvidia, which recently [reported](https:\/\/seekingalpha.com\/news\/4489760-nvidia-non-gaap-eps-of-1_05-beats-by-0_04-revenue-of-46_74b-beats-by-610m#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) another stellar quarter with \\$46.74 billion in sales and a growth of 55.6%. Clearly, Nvidia continues to lead the AI hardware market, so AMD needs to keep innovating to remain competitive, which means more R\\&D expenses. Additionally, there is a chance Intel might start its slow resurgence with the latest [\\$5.7 billion grant](https:\/\/seekingalpha.com\/news\/4490161-intel-receives-57b-of-us-stake-from-chips-grants-cfo#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) from the U.S. government.\n\nAMD's AI growth also depends on whether any new restrictions related to China will come into effect. In the latest quarter, the company's data center revenue and margins [deteriorated](https:\/\/seekingalpha.com\/article\/4809196-advanced-micro-devices-inc-2025-q2-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) significantly due to export restrictions, which \"effectively eliminated MI308 sales\" to China. Even though AMD does not include China sales in its guidance, the company clearly needs this source of revenue to improve its growth, not to mention better clarity to better manage its inventory.\n\n[![AMD's data center revenue in Q2 2025](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-1756424549626482_origin.png?io=w640)](https:\/\/static.seekingalpha.com\/uploads\/2025\/8\/28\/42686696-1756424549626482_origin.png)\n\nAMD Q2 presentation\n\nStill, despite all the risks and intense competition, AMD remains attractive for investment. With impressive strength in the Client segment, solid Data Center performance, especially with its EPYC CPUs, and a promising future in the Gaming business, AMD should be able to continue growing substantially in the next years. Even though the stock has already doubled from its April lows, AMD still has some margin of safety, with a fair price of about \\$223, which I estimated previously. Therefore, AMD remains a **Strong Buy.**\n\n3\\.54K Followers\n\n**Analyst’s Disclosure:** I\/we have a beneficial long position in the shares of AMD, NVDA, MSFT, EA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.\n\n**Seeking Alpha's Disclosure:** Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.","meta_canonical":null}

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Boilerpipe Text	Vertigo3d/E+ via Getty Images As I mentioned in my previous article on Advanced Micro Devices, Inc. ( AMD ), the stock has never really been "loved" by the market in my 8 years of covering it. And at the beginning of 2025, when I last covered the stock, AMD's valuation kept decreasing due to seemingly unfounded skepticism, which did not make sense to me. Seeking Alpha Now, since then, AMD stock has finally started to recover, and it seems to be on track to reach my price target of $223 by the end of the year, which I expressed in my previous article. While some investors may become cautious about buying AMD shares, since the price has almost doubled over the last four months, the local pullback we are currently seeing presents a solid chance to invest in the company for the medium to long term. Therefore, I reiterate my Strong Buy rating for AMD. The market is finally recognizing AMD's potential in the AI market Of course, one of the primary reasons to be bullish about AMD is its potential in the AI semiconductor market. For some time, the market seemed to discount AMD's efforts in building AI-focused chips, and there was a somewhat strong sentiment that the company had "lost the war" to Nvidia ( NVDA ). This was clearly a wrong oversimplification of the AI hardware business dynamics, and now the market has finally started to recognize that a) AMD is a strong player in AI semiconductors, and b) being the " second best " might not even be as bad as some would suggest. AMD's Data Center revenue only increased 14% year-over-year in the latest quarter, but the main reason for that was the sale restrictions to China. For more details, there is a solid roundup by James Foord here on Seeking Alpha. In general, I believe AMD is progressing well in its Instinct AI accelerators, with a solid launch of the MI350 series of products, which offer comparable performance to Nvidia's Blackwell B200, and new partnerships like the one with Oracle ( ORCL ), which is building a 27,000-plus node AI cluster with AMD's MI accelerators and EPYC Turin CPUs. From a competitive standpoint, MI355 matches or exceeds B200 in critical training and inference workloads and delivers comparable performance to GB200 for key workloads at significantly lower cost and complexity. For upscale inferencing, MI355 delivers up to 40% more tokens per dollar, providing leadership performance and clear TCO advantages. AMD is also expected to release MI400 accelerators next year, which should make the company even more competitive in the AI accelerator market. While AMD might not reach Nvidia's level of sales, I believe the company will still benefit immensely from the AI market since its chips provide great inference performance for less money. And because more AI functionality is being integrated into everyday tools used by a lot of people, (it seems like AI is now a part of every single software on the market) the need for powerful and cost-efficient inference chips will only increase over time. This is not to mention AMD is still a big player in the data center CPU market, where the only major competition is the struggling Intel ( INTC ). (more on that later) As a result, AMD does not need to reach Nvidia's market share to still increase its data center sales significantly in the coming years. Since big tech is expected to spend $364 billion on AI CapEx this year alone, even a single additional percentage point in market share could lead to a 10% revenue increase for AMD. The company's client and data center businesses continue to benefit from Intel's struggles In the CPU and desktop GPU segments, AMD still has solid room to grow as its primary competitor, Intel, continues to struggle and lose market share. In the desktop market, AMD has already overtaken Intel for the first time since 2006. In Q2, AMD's Client segment surged by another 67% year-over-year, driven by Ryzen desktop CPUs. PassMark AMD's laptop market share continues to increase as well, and I expect this dynamic to accelerate in the near future. Here, my thesis from 2019 — that AMD has an impressive mobile offering which should help the company grow its sales significantly — still holds. AMD seems to be the processor of choice for many Copilot-powered laptops with local AI inferencing. PassMark The market share expansion is nowhere more evident than in the server market. AMD's Turin EPYC processors are reported to outperform Intel's latest Xeon chips, so I expect more companies to choose the former in the coming quarters. During its peak in Q4 2021, Intel generated $7.3 billion in Data Center Group sales, so AMD can easily reach comparable levels of revenue in the medium term, unless Intel effects an unlikely quick turnaround. For context, AMD generated $3.2 billion from its data center segment. This also includes AI accelerators, which were clearly not offered by Intel in 2021. PassMark AMD's gaming business should recover soon When it comes to the gaming business, AMD has had a difficult couple of years, with this segment of revenue declining significantly. This was one of the biggest issues I saw after the Q4 results — AMD's gaming revenue in the quarter dropped by 59% year-over-year, and full-year 2024 gaming sales decreased by 58%. This was an alarming dynamic and it likely became the reason why the company started to combine the gaming and client revenue in its reports starting with Q1 this year. There were several reasons for the gaming revenue decrease, such as general stagnation in the video games market, the current console generation starting to reach maturity, and intensified competition from Nvidia which offered a better software/hardware integration for not much more money. However, AMD's gaming revenue has already started to recover in the latest quarter, and I expect the company's gaming business will be fine long term. In more detail, in Q2 this year, AMD's gaming sales surged by 73%, from $648 million last year to $1,122 million now. The company names two major drivers of this growth — a "large double-digit" growth in the console semi-custom segment and strong sales of the new Radeon 9000 series graphics cards. On the latter, the review roundup on AMD's new gaming GPUs is overwhelmingly positive, and major outlets state that "Nvidia finally has some major competition." The company itself claims that the RX 9060 XT GPU offers the "best performance-per-dollar" and that the demand outpaced supply in Q2. From my quick glance at the gamers' sentiment about the new GPUs on Reddit, it seems that AMD delivered exactly what everyone needed at a very affordable price. Therefore, it is likely the positive momentum will continue in the near future, especially with the holiday season coming up, and AMD's gaming GPU business should at least stabilize for the rest of 2025. What should also help AMD is the significant number of big video game titles releasing in the second half of 2025. The list includes such anticipated games as: Take-Two's ( TTWO ) new Mafia and Borderlands : both are very big franchises with strong player counts; EA's ( EA ) Battlefield 6 : the game had a record half a million concurrent players during the beta test and is likely to sell well thanks to positive reviews; Microsoft's ( MSFT ) titles like The Outer Worlds 2 and the new Call of Duty . These games are extremely popular, but more importantly, they are hardware-demanding as well, which is likely to prompt many players to upgrade their systems with new CPUs and GPUs. And since AMD has very solid offerings in terms of price-to-performance combination, gaming hardware revenue should see a bump in Q3 and Q4. Additionally, in the console business, AMD has recently signed another multi-year partnership with Microsoft to develop chips for the next generation of consoles, handheld devices, PCs, and cloud. This collaboration is huge for AMD as it covers a wide range of devices, and cloud gaming is especially interesting here. AMD is also expected to power Sony's ( SONY ) PlayStation 6, as it reportedly won a contract in 2022 over Intel. Xbox and PlayStation together account for about a 70% share of the console market, which is expected to reach $25.3 billion next year and $26.7 billion by 2029. Since SoCs are responsible for about 20-22% of console costs, AMD should make $3.5-4 billion on average from consoles alone each year in the next five years, with additional revenue coming from gaming PCs and cloud sales. This should provide a nice boost of additional revenue to the company that is already doing well in other segments. AMD's financial performance is solid with little financial risks Regarding AMD's financials, the company appears to be in decent shape, from my point of view. So far this year, AMD's revenue increased by 36% in Q1 and 32% in Q2, and it is expected to grow by an average of about 22% in the next three years. The company's earnings are estimated to increase even faster than revenue, with a 3-year average growth of about 32%. AMD also reiterated in its latest earnings call that the margins are expected to improve significantly once there is a sufficient ramp-up in its AI MI-series accelerators and once its China-aimed MI308 GPU inventory is released. AMD's current ratio (current assets/current liabilities) was at a healthy level of 2.5 in the latest quarter. AMD's free cash flows were also at a decent level of $1 billion in Q2, so there is very little financial risk here, especially with $5.8 billion in cash and equivalents and just $3.2 billion in long-term debt, which the company raised recently mostly just to cover the acquisition of ZT Systems. Additionally here, the company continues to increase its R&D costs in a healthy way, with a 20% growth in Q2. AMD's SG&A expenses did surprisingly surge by 55% in the quarter, but it seems to have been related to $83 million in transaction costs related to the ZT Systems acquisition again and the "go-to-market activities in the Client and Gaming segment." This dynamic needs to be monitored in the future, but I expect it to stabilize in the next quarters. Generally, although AMD does need to improve its margins in the future, the company appears financially healthy and should be able to continue investing in its technology without the need to borrow money in the short to medium term. The stock's valuation remains low despite the recent surge Even though AMD's stock has increased in price significantly in the last months, the company's valuation still remains low and offers some margin of safety. AMD's 2-year forward P/E is lower than that of most competitors, including Nvidia, Intel, and Arm Holding ( ARM ). Its EV/EBITDA ratio is relatively high, but it should improve quickly due to the aforementioned improvements in margins expected in the coming quarters. Seeking Alpha With an estimated 3-year average earnings growth of about 32% and a PEG ratio of 1.5, AMD can trade at a P/E ratio of 48 without being considered overvalued. This would lead to a stock price of $288, based on a 2026 EPS of $6. While this price might be a stretch in the short term, my previous 2025 price target of $223, estimated using a DCF analysis, still holds. Risks and key takeaways Acknowledging some risks and negatives, AMD continues to face significant competition from Nvidia, which recently reported another stellar quarter with $46.74 billion in sales and a growth of 55.6%. Clearly, Nvidia continues to lead the AI hardware market, so AMD needs to keep innovating to remain competitive, which means more R&D expenses. Additionally, there is a chance Intel might start its slow resurgence with the latest $5.7 billion grant from the U.S. government. AMD's AI growth also depends on whether any new restrictions related to China will come into effect. In the latest quarter, the company's data center revenue and margins deteriorated significantly due to export restrictions, which "effectively eliminated MI308 sales" to China. Even though AMD does not include China sales in its guidance, the company clearly needs this source of revenue to improve its growth, not to mention better clarity to better manage its inventory. AMD Q2 presentation Still, despite all the risks and intense competition, AMD remains attractive for investment. With impressive strength in the Client segment, solid Data Center performance, especially with its EPYC CPUs, and a promising future in the Gaming business, AMD should be able to continue growing substantially in the next years. Even though the stock has already doubled from its April lows, AMD still has some margin of safety, with a fair price of about $223, which I estimated previously. Therefore, AMD remains a Strong Buy. 3.54K Followers Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, MSFT, EA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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[Home](https://seekingalpha.com/#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) 2. [Stock Ideas](https://seekingalpha.com/stock-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) 3. [Long Ideas](https://seekingalpha.com/stock-ideas/long-ideas#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) 4. [Tech](https://seekingalpha.com/stock-ideas/technology#source=first_level_url%3Aarticle%7Ccontent_type%3Aall%7Csection%3Apage_breadcrumbs) # AMD: There Is Still Time To Accumulate Shares Aug. 29, 2025 10:49 AM ET[Advanced Micro Devices, Inc. (AMD) Stock](https://seekingalpha.com/symbol/AMD#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AAMD), [AMD:CA Stock](https://seekingalpha.com/symbol/AMD:CA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AAMD%3ACA)[NVDA](https://seekingalpha.com/symbol/NVDA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3ANVDA), [NVDA:CA](https://seekingalpha.com/symbol/NVDA:CA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3ANVDA%3ACA), [INTC](https://seekingalpha.com/symbol/INTC#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AINTC), [INTC:CA](https://seekingalpha.com/symbol/INTC:CA#source=section%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Aarticle%7Csymbol%3AINTC%3ACA) ![](https://seekingalpha.com/images/users_profile/042/686/696/big_pic.png?io=w36) [Roman Luzgin](https://seekingalpha.com/author/roman-luzgin#source=url_first_level%3Aarticle%7Csection%3Aauthor_brief%3Aroman-luzgin%7Csection_asset%3Aauthor_brief%7Cauthor_name) 3\.54K Followers Follow - 5 Share - Save - Play(15min) - [Comments (7)](https://seekingalpha.com/article/4817885-amd-there-is-still-time-to-accumulate-shares#scroll_comments) ## Summary - I reiterate my Strong Buy rating for Advanced Micro Devices, Inc., as the market is finally recognizing its AI potential and undervalued stock price. - AMD's AI accelerators and EPYC CPUs are gaining traction, with strong partnerships and competitive performance versus Nvidia and Intel. - The gaming segment is rebounding, driven by new GPU launches, console partnerships, and upcoming major game releases, supporting long-term growth. - AMD's financials are robust, with healthy cash flow, manageable debt, and attractive valuation, offering margin of safety despite recent price gains. ![Digital abstract CPU . AI - Artificial Intelligence concept. Neural network. Machine Learning Concepts. Innovations and technology](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/2187761440/image_2187761440.jpg?io=getty-c-w750) Vertigo3d/E+ via Getty Images As I mentioned in [my previous article](https://seekingalpha.com/article/4757364-amd-low-valuation-makes-no-sense#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) on Advanced Micro Devices, Inc. ([AMD](https://seekingalpha.com/symbol/AMD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), the stock has never really been "loved" by the market in my 8 years of covering it. And at the beginning of 2025, when I last covered the stock, AMD's valuation kept decreasing due to seemingly unfounded skepticism, which did not make sense to me. [![Roman Luzgin's ratings for AMD](https://static.seekingalpha.com/uploads/2025/8/22/42686696-17558687879629757_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/22/42686696-17558687879629757_origin.png) Seeking Alpha Now, since then, AMD stock has finally started to recover, and it seems to be on track to reach my price target of \$223 by the end of the year, which I expressed in my previous article. While some investors may become cautious about buying AMD shares, since the price has almost doubled over the last four months, the local pullback we are currently seeing presents a solid chance to invest in the company for the medium to long term. Therefore, I reiterate my Strong Buy rating for AMD. ## The market is finally recognizing AMD's potential in the AI market Of course, one of the primary reasons to be bullish about AMD is its potential in the AI semiconductor market. For some time, the market seemed to discount AMD's efforts in building AI-focused chips, and there was a somewhat strong sentiment that the company had "lost the war" to Nvidia ([NVDA](https://seekingalpha.com/symbol/NVDA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). This was clearly a wrong oversimplification of the AI hardware business dynamics, and now the market has finally started to recognize that a) AMD is a strong player in AI semiconductors, and b) being the "[second best](https://seekingalpha.com/article/4806361-amd-being-second-best-is-plenty-good#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)" might not even be as bad as some would suggest. AMD's Data Center revenue only [increased](https://seekingalpha.com/filing/10271237#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) 14% year-over-year in the latest quarter, but the main reason for that was the sale restrictions to China. For more details, there is a [solid roundup by James Foord](https://seekingalpha.com/article/4816881-amd-tech-gap-closing-market-share-will-follow-then-valuation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) here on Seeking Alpha. In general, I believe AMD is progressing well in its Instinct AI accelerators, with a solid launch of the MI350 series of products, which [offer](https://zoomax.com/low-vision-information/amd-mi350-vs-nvidia-blackwell-a-comparative-analysis-of-next-generation-chips/) comparable performance to Nvidia's Blackwell B200, and new [partnerships](https://seekingalpha.com/article/4809195-advanced-micro-devices-inc-amd-q2-2025-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) like the one with Oracle ([ORCL](https://seekingalpha.com/symbol/ORCL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which is building a 27,000-plus node AI cluster with AMD's MI accelerators and EPYC Turin CPUs. > From a competitive standpoint, MI355 matches or exceeds B200 in critical training and inference workloads and delivers comparable performance to GB200 for key workloads at significantly lower cost and complexity. For upscale inferencing, MI355 delivers up to 40% more tokens per dollar, providing leadership performance and clear TCO advantages. AMD is also [expected](https://seekingalpha.com/article/4810938-amd-inference-is-the-future-of-ai#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to release MI400 accelerators next year, which should make the company even more competitive in the AI accelerator market. While AMD might not reach Nvidia's level of sales, I believe the company will still benefit immensely from the AI market since its chips provide great inference performance for less money. And because more AI functionality is being integrated into everyday tools used by a lot of people, (it seems like AI is now a part of every single software on the market) the need for powerful and cost-efficient inference chips will only increase over time. This is not to mention AMD is still a big player in the data center CPU market, where the only major competition is the struggling Intel ([INTC](https://seekingalpha.com/symbol/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). (more on that later) As a result, AMD does not need to reach Nvidia's market share to still increase its data center sales significantly in the coming years. Since big tech is [expected](https://finance.yahoo.com/news/big-techs-ai-investments-set-to-spike-to-364-billion-in-2025-as-bubble-fears-ease-143203885.html) to spend \$364 billion on AI CapEx this year alone, even a single additional percentage point in market share could lead to a 10% revenue increase for AMD. ## The company's client and data center businesses continue to benefit from Intel's struggles In the CPU and desktop GPU segments, AMD still has solid room to grow as its primary competitor, Intel, continues to struggle and lose market share. In the desktop market, AMD has already [overtaken](https://www.cpubenchmark.net/market_share.html) Intel for the first time since 2006. In Q2, AMD's Client segment surged by another 67% year-over-year, driven by Ryzen desktop CPUs. [![Desktop market share of AMD vs Intel](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255186492524_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255186492524_origin.png) PassMark AMD's laptop market share continues to increase as well, and I expect this dynamic to accelerate in the near future. Here, [my thesis from 2019](https://seekingalpha.com/article/4233705-amd-ces-2019-marks-another-great-but-difficult-year-ahead#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) — that AMD has an impressive mobile offering which should help the company grow its sales significantly — still holds. AMD [seems](https://seekingalpha.com/article/4702926-amd-yet-another-buying-opportunity-rating-upgrade#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to be the processor of choice for many Copilot-powered laptops with local AI inferencing. [![Laptop market share of AMD vs Intel](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255561906095_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255561906095_origin.png) PassMark The market share expansion is nowhere more evident than in the server market. AMD's Turin EPYC processors are [reported](https://www.bacloud.com/en/blog/185/server-cpu-showdown-amd-epyc-turin-vs-intel-xeon-granite-rapids-and-sierra-forest.html) to outperform Intel's latest Xeon chips, so I expect more companies to choose the former in the coming quarters. During its peak in Q4 2021, Intel [generated](https://seekingalpha.com/article/4481877-intel-corporation-2021-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) \$7.3 billion in Data Center Group sales, so AMD can easily reach comparable levels of revenue in the medium term, unless Intel effects an unlikely quick turnaround. For context, AMD generated \$3.2 billion from its data center segment. This also includes AI accelerators, which were clearly not offered by Intel in 2021. [![Server market share of AMD vs Intel](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255743829079_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255743829079_origin.png) PassMark ## AMD's gaming business should recover soon When it comes to the gaming business, AMD has had a difficult couple of years, with this segment of revenue declining significantly. This was one of the biggest issues I saw after the Q4 results — AMD's gaming revenue in the quarter [dropped](https://seekingalpha.com/article/4754845-advanced-micro-devices-inc-2024-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) by 59% year-over-year, and full-year 2024 gaming sales decreased by 58%. This was an alarming dynamic and it likely became the reason why the company started to combine the gaming and client revenue in its reports [starting](https://seekingalpha.com/article/4782558-advanced-micro-devices-inc-2025-q1-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) with Q1 this year. There were several reasons for the gaming revenue decrease, such as general [stagnation](https://best-of-gaming.be/wp-content/uploads/2024/09/2024_Newzoo_Global_Games_Market_Report.pdf) in the video games market, the current console generation starting to reach maturity, and intensified competition from Nvidia which offered a better software/hardware integration for not much more money. However, AMD's gaming revenue has already started to recover in the latest quarter, and I expect the company's gaming business will be fine long term. In more detail, in Q2 this year, AMD's gaming sales surged by 73%, from \$648 million last year to \$1,122 million now. The company names two major drivers of this growth — a "large double-digit" growth in the console semi-custom segment and strong sales of the new Radeon 9000 series graphics cards. On the latter, [the review roundup](https://www.windowscentral.com/hardware/cpu-gpu-components/amd-rdna-4-review-roundup) on AMD's new gaming GPUs is overwhelmingly positive, and major outlets state that "Nvidia finally has some major competition." The company itself claims that the RX 9060 XT GPU offers the "best performance-per-dollar" and that the demand outpaced supply in Q2. From my quick glance at the [gamers' sentiment](https://www.reddit.com/r/Amd/comments/1j06utb/all_you_need_for_gaming_amd_rdna_4_and_rx_9000/) about the new GPUs on Reddit, it seems that AMD delivered exactly what everyone needed at a very affordable price. Therefore, it is likely the positive momentum will continue in the near future, especially with the holiday season coming up, and AMD's gaming GPU business should at least stabilize for the rest of 2025. What should also help AMD is the significant number of big video game titles releasing in the second half of 2025. The [list](https://www.gamespot.com/articles/2025-upcoming-games-release-schedule/1100-6526471/) includes such anticipated games as: - Take-Two's ([TTWO](https://seekingalpha.com/symbol/TTWO#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) new Mafia and Borderlands: both are very big franchises with strong player counts; - EA's ([EA](https://seekingalpha.com/symbol/EA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) Battlefield 6: the game [had](https://www.tomshardware.com/video-games/pc-gaming/battlefield-6-reaches-all-time-record-half-a-million-concurrent-players-on-steam-520k-open-beta-surpasses-every-call-of-duty-ever-made-in-player-count) a record half a million concurrent players during the beta test and is likely to sell well thanks to positive reviews; - Microsoft's ([MSFT](https://seekingalpha.com/symbol/MSFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) titles like The Outer Worlds 2 and the new Call of Duty. These games are extremely popular, but more importantly, they are hardware-demanding as well, which is likely to prompt many players to upgrade their systems with new CPUs and GPUs. And since AMD has very solid offerings in terms of price-to-performance combination, gaming hardware revenue should see a bump in Q3 and Q4. Additionally, in the console business, AMD has recently [signed](https://news.xbox.com/en-us/2025/06/19/xbox-amd-next-generation-xbox/) another multi-year partnership with Microsoft to develop chips for the next generation of consoles, handheld devices, PCs, and cloud. This collaboration is huge for AMD as it covers a wide range of devices, and cloud gaming is especially interesting here. AMD is also [expected](https://www.tweaktown.com/news/106625/playstation-6-specs-leak-update-amd-robin-apu-teased-with-powerful-rdna-5-gpu-zen-cpu/index.html) to power Sony's ([SONY](https://seekingalpha.com/symbol/SONY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) PlayStation 6, as it reportedly [won](https://www.ign.com/articles/sonys-playstation-6-chip-contract-reportedly-in-the-hands-of-amd) a contract in 2022 over Intel. Xbox and PlayStation together [account](https://www.news.market.us/gaming-console-statistics/) for about a 70% share of the console market, which is expected to reach \$25.3 billion next year and \$26.7 billion by 2029. Since SoCs are [responsible](https://www.engadget.com/2013-11-26-teardown-suggests-xbox-one-manufacturing-cost-of-471.html) for about 20-22% of console costs, AMD should make \$3.5-4 billion on average from consoles alone each year in the next five years, with additional revenue coming from gaming PCs and cloud sales. This should provide a nice boost of additional revenue to the company that is already doing well in other segments. ## AMD's financial performance is solid with little financial risks Regarding AMD's financials, the company appears to be in decent shape, from my point of view. So far this year, AMD's revenue increased by 36% in Q1 and 32% in Q2, and it is [expected](https://seekingalpha.com/symbol/AMD/earnings/estimates#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to grow by an average of about 22% in the next three years. The company's earnings are estimated to increase even faster than revenue, with a 3-year average growth of about 32%. AMD also reiterated in its latest earnings call that the margins are expected to improve significantly once there is a sufficient ramp-up in its AI MI-series accelerators and once its China-aimed MI308 GPU inventory is released. AMD's current ratio (current assets/current liabilities) was at a healthy level of 2.5 in the latest quarter. AMD's free cash flows were also at a decent level of \$1 billion in Q2, so there is very little financial risk here, especially with \$5.8 billion in cash and equivalents and just \$3.2 billion in long-term debt, which the company raised recently mostly just to cover the acquisition of ZT Systems. Additionally here, the company continues to increase its R\&D costs in a healthy way, with a 20% growth in Q2. AMD's SG\&A expenses did surprisingly surge by 55% in the quarter, but it seems to have been related to \$83 million in transaction costs related to the ZT Systems acquisition again and the "go-to-market activities in the Client and Gaming segment." This dynamic needs to be monitored in the future, but I expect it to stabilize in the next quarters. Generally, although AMD does need to improve its margins in the future, the company appears financially healthy and should be able to continue investing in its technology without the need to borrow money in the short to medium term. ## The stock's valuation remains low despite the recent surge Even though AMD's stock has increased in price significantly in the last months, the company's valuation still remains low and offers some margin of safety. AMD's 2-year forward P/E is [lower](https://seekingalpha.com/comparison/new/MCUyQ2FtZCUyQ252ZGElMkNpbnRjJTJDcWNvbSUyQ2FybQ==#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) than that of most competitors, including Nvidia, Intel, and Arm Holding ([ARM](https://seekingalpha.com/symbol/ARM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). Its EV/EBITDA ratio is relatively high, but it should improve quickly due to the aforementioned improvements in margins expected in the coming quarters. [![Valuation comparison between AMD and peers](https://static.seekingalpha.com/uploads/2025/8/28/42686696-17564232183525448_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/28/42686696-17564232183525448_origin.png) Seeking Alpha With an estimated 3-year average earnings growth of about 32% and a PEG ratio of 1.5, AMD can trade at a P/E ratio of 48 without being considered overvalued. This would lead to a stock price of \$288, based on a 2026 EPS of \$6. While this price might be a stretch in the short term, my previous 2025 price target of \$223, estimated using a DCF analysis, still holds. ## Risks and key takeaways Acknowledging some risks and negatives, AMD continues to face significant competition from Nvidia, which recently [reported](https://seekingalpha.com/news/4489760-nvidia-non-gaap-eps-of-1_05-beats-by-0_04-revenue-of-46_74b-beats-by-610m#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) another stellar quarter with \$46.74 billion in sales and a growth of 55.6%. Clearly, Nvidia continues to lead the AI hardware market, so AMD needs to keep innovating to remain competitive, which means more R\&D expenses. Additionally, there is a chance Intel might start its slow resurgence with the latest [\$5.7 billion grant](https://seekingalpha.com/news/4490161-intel-receives-57b-of-us-stake-from-chips-grants-cfo#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) from the U.S. government. AMD's AI growth also depends on whether any new restrictions related to China will come into effect. In the latest quarter, the company's data center revenue and margins [deteriorated](https://seekingalpha.com/article/4809196-advanced-micro-devices-inc-2025-q2-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) significantly due to export restrictions, which "effectively eliminated MI308 sales" to China. Even though AMD does not include China sales in its guidance, the company clearly needs this source of revenue to improve its growth, not to mention better clarity to better manage its inventory. [![AMD's data center revenue in Q2 2025](https://static.seekingalpha.com/uploads/2025/8/28/42686696-1756424549626482_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/28/42686696-1756424549626482_origin.png) AMD Q2 presentation Still, despite all the risks and intense competition, AMD remains attractive for investment. With impressive strength in the Client segment, solid Data Center performance, especially with its EPYC CPUs, and a promising future in the Gaming business, AMD should be able to continue growing substantially in the next years. Even though the stock has already doubled from its April lows, AMD still has some margin of safety, with a fair price of about \$223, which I estimated previously. Therefore, AMD remains a Strong Buy. This article was written by ![](https://seekingalpha.com/images/users_profile/042/686/696/big_pic.png?io=w36) [Roman Luzgin](https://seekingalpha.com/author/roman-luzgin#source=url_first_level%3Aarticle%7Csection%3Aauthor_root%3Aroman-luzgin%7Csection_asset%3Aauthor_root%7Cauthor_name) 3\.54K Followers Follow I write about growth opportunities in different sectors related to technology, providing analyses of fundamentals that are driven by current and future trends. Senior Data Analyst by day, I am building and managing my own portfolio of tech-related securities, which to date has consistently beaten the market. Show more Show more Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, MSFT, EA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. - Like - Share - Print - [Comments (7)](https://seekingalpha.com/article/4817885-amd-there-is-still-time-to-accumulate-shares#scroll_comments) ### Recommended For You ![](https://seekingalpha.com/images/users_profile/062/467/668/big_pic.png?io=w36) ### [AMD: The Trojan Horse In The Server Room](https://seekingalpha.com/article/4882644-amd-the-trojan-horse-in-the-server-room#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A1) Joseph Montezuma ![](https://seekingalpha.com/images/users_profile/049/853/134/big_pic.png?io=w36) ### [AMD's Next AI Catalyst: MI450](https://seekingalpha.com/article/4882460-amds-next-ai-catalyst-mi450#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A2) Yiannis Zourmpanos ![](https://seekingalpha.com/images/users_profile/051/630/113/big_pic.png?io=w36) ### [Arista Networks: All Ready To Storm To New Highs (Upgrade)](https://seekingalpha.com/article/4882278-arista-networks-all-ready-to-storm-to-new-highs-upgrade#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A3) JR Research ![](https://seekingalpha.com/images/users_profile/054/998/043/big_pic.png?io=w36) ### [CoreWeave's High-Growth Cadence Proven - Strong Buy For Contrarians](https://seekingalpha.com/article/4882844-coreweaves-high-growth-cadence-proven-strong-buy-for-contrarians#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A4) Juxtaposed Ideas ![](https://seekingalpha.com/images/users_profile/063/243/649/big_pic.png?io=w36) ### [Sandisk May Not Be Peaking Yet - Buy](https://seekingalpha.com/article/4882152-sandisk-may-not-be-peaking-yet-buy#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A5) Nova Capital ![](https://seekingalpha.com/images/users_profile/063/126/192/big_pic.png?io=w36) ### [Synaptics: A Better Business, But Still Waiting For The AI Ramp](https://seekingalpha.com/article/4882572-synaptics-a-better-business-but-still-waiting-for-the-ai-ramp#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A6) Tranzoro Investments ![](https://seekingalpha.com/images/users_profile/061/592/531/big_pic.png?io=w36) ### [Microsoft: Be Greedy When Others Are Fearful](https://seekingalpha.com/article/4882156-microsoft-be-greedy-when-others-are-fearful#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A7) RI Research ![](https://seekingalpha.com/images/users_profile/061/437/108/big_pic.png?io=w36) ### [Sanmina: ZT Systems Doubles Revenue, Margins Hold, And The Selloff Is Unjustified](https://seekingalpha.com/article/4882433-sanmina-zt-systems-doubles-revenue-margins-hold-and-the-selloff-is-unjustified#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A8) Emmanuel Onwusah ![](https://seekingalpha.com/images/users_profile/062/060/938/big_pic.png?io=w36) ### [Adobe Q1: The Most Absurd Valuation In Software I'm Buying](https://seekingalpha.com/article/4882682-adobe-q1-the-most-absurd-valuation-in-software-im-buying#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A9) Julia Ostian ![](https://seekingalpha.com/images/users_profile/051/760/760/big_pic.png?io=w36) ### [Nebius: Demand Is There, But CapEx Is The Key Variable](https://seekingalpha.com/article/4882650-nebius-demand-is-there-and-capex-is-to-watch#source=section%3Arecommended_for_you%7Csection_asset%3Aintegrated%7Cfirst_level_url%3Aarticle%7Cvariation_group%3Avariation_a%7Cline%3A10) Tech Stock Pros ### Comments (7) Newest If you type a company or ETF ticker symbol in capital letters we will automatically link to the symbol page. You can remove the link by deleting the \$ in the comment. Publish s [stocks for profit](https://seekingalpha.com/user/15842082) 31 Aug. 2025, 4:19 AM Premium [Comments (7.41K)](https://seekingalpha.com/user/15842082) \\| \+ Follow Title - "AMD: There is Still Time To Accumulate Shares" Indeed. AMD is a long term buy and hold. Look at the progress AMD has made in recent years. Going from zilch to 30% market share against massive incumbent INTC. Compare the stock price of AMD versus INTC over that period. AMD is much stronger and setting its sight on NVDA. Same thing could happen again. AMD has much to gain and NVDA has much to lose. Growing AMD's market share from 5% to 15% is a triple. Another triple occurs going from 15% to 45%. Demand for AI is insatiable so it's open field running for AMD not trench warfare. There's lots of room for both companies. Industry wants choice so this will help AMD. Expect a more evenly split AI market in two years. Huge growth ahead for AMD. Best time to plant a tree was years ago. Next best time is now. Reply Like (6) ![](https://seekingalpha.com/images/users_profile/048/220/745/small_pic.png?t=38c8d1a38a) [Zeusy Zeus](https://seekingalpha.com/user/48220745) 03 Sep. 2025, 2:44 AM [Comments (2.31K)](https://seekingalpha.com/user/48220745) \\| \+ Follow @stocks for profit , I mostly agree. While no one can truly compete with Nvidia and the premium products and services they offer users, companies will be looking for ways to get these at a discount, and that’s what AMD will be able to provide. I believe the performance will always fall short of Nvidia’s, but that’s baked into the discount companies will get. Not all of them need the latest and greatest throughput performance. Reply Like s [stocks for profit](https://seekingalpha.com/user/15842082) 03 Sep. 2025, 5:23 AM Premium [Comments (7.41K)](https://seekingalpha.com/user/15842082) \\| \+ Follow [@Zeusy Zeus](https://seekingalpha.com/user/48220745#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4817885%7Ccomment_id%3A101009781) - "... performance will always fall short of Nvidia’s..." Don't be so sure. AMD's roadmap is driven by a relentless chiplet design cadence. NVDA will face a tsunami of ever better MI series products just like INTC was overwhelmed by Zen. Folks look at MI300 and misjudge what's coming next. MI300 series suffers from its HPC design optimized for exascale super El Capitan. Lots of transistors in MI300 are dedicated to FP64 and FP32. It's certain MI400 will dedicate many more transistors to FP16 and lower precision compute. But AMD is not stopping there. Another avenue for improving performance is compact core design for GPU similar to Zen 4c for CPU in Bergamo. Such dense compute is more easily done with chiplets because of better yield. Also GPU cache can be moved vertically off chip much like what happened with Genoa-X for CPU. This will allow significantly more space on the GPU dedicated for compute. About a year from now MI400 will be released. Advanced chiplet design and support for datacenter-scale network connectivity at the silicon level will make MI400 at least as powerful as NVDA's upcoming Rubin. Software for AMD will be better and contributions by engineers from the ZT Systems acquisition will make MI400 a compelling value proposition for industry players looking for choice. At AMD's Advancing AI event in June Lisa said the MI400 series has a 10x performance gain over MI355X. OpenAI CEO Sam Altman is amazed with MI450 specs, values AMD partnership, and hugged Lisa. It was also mentioned by Lisa there's more stuff coming with MI500 and growing a collaborative AI ecosystem. Considering low-key Lisa all that is pretty provocative. AI beast MI400 will level the playing field. It's likely that MI500 will totally wreck NVDA's dream of AI domination. Reply Like (4) Liked By Analyst ![](https://seekingalpha.com/images/users_profile/012/947/631/small_pic.png?t=cb21c1aa47) [tufttugger](https://seekingalpha.com/user/12947631) 03 Sep. 2025, 12:03 PM Premium [Comments (10.11K)](https://seekingalpha.com/user/12947631) \\| \+ Follow [@stocks for profit](https://seekingalpha.com/user/15842082#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4817885%7Ccomment_id%3A101012408) AMD is doing amazing things with memory. They know it’s a bottleneck and have worked on IP to reduce that bottleneck for years. Whether it’s the invention of HBM memory or infinity cache, to laddered cache and memory compression, or 3D cache (all combined), they are adamant on keeping that edge and feeding their cores. Reply Like (1) S [Siskiyougold](https://seekingalpha.com/user/44452676) 29 Aug. 2025, 12:40 PM Premium [Investing Group](https://seekingalpha.com/checkout/mp_1026#source=first_level_url%3Anews%7Csection%3Acomments%7Csection_asset%3Abadge%7Cbutton%3AInvesting%20Group) [Comments (1.45K)](https://seekingalpha.com/user/44452676) \\| \+ Follow I would mostly agree with the analysis, I don't see AMD hitting \$223 this year. But probably early next year I could see it pushing past \$223. IF they are able to ramp up MI355 and also release the MI400 early next year. I find the AMD / IBM partnership to be a VERY promising development \! Reply Like (8) ![](https://seekingalpha.com/images/users_profile/040/207/546/small_pic.png?t=97339935ab) [siola.68](https://seekingalpha.com/user/40207546) 29 Aug. 2025, 10:53 AM Premium [Comments (783)](https://seekingalpha.com/user/40207546) \\| \+ Follow AMD, hold,sell Reply Like ![](https://seekingalpha.com/images/users_profile/048/220/745/small_pic.png?t=38c8d1a38a) [Zeusy Zeus](https://seekingalpha.com/user/48220745) 03 Sep. 2025, 2:41 AM [Comments (2.31K)](https://seekingalpha.com/user/48220745) \\| \+ Follow [@siola.68](https://seekingalpha.com/user/40207546#source=section%3Acomment%7Csection_asset%3Acomment%7Cfirst_level_url%3Aarticle%7Ccontent_id%3A4817885%7Ccomment_id%3A101009580) What is it a hold or a sell? Couldn’t make up your mind so you wrote both? Reply Like (1) Add A Comment Disagree with this article? [Submit your own](https://about.seekingalpha.com/become-an-analyst). To report a factual error in this article, click here . Your feedback matters to us\! ### About AMD Stock \| Symbol \| Last Price \| % Chg \| \|---\|---\|---\| \| [AMD](https://seekingalpha.com/symbol/AMD#source=first_level_url%3Aarticle%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3AAMD) Advanced Micro Devices, Inc. \| 196\.58 \| 1\.65% \| \| Post \| 196\.88 \| 0\.15% \| - 1D - 5D - 1M - 6M - 1Y - 5Y - 10Y ###### Chart Combination chart with 2 data series. View as data table, Chart The chart has 1 X axis displaying Time. Data ranges from 2025-03-17 00:00:00 to 2026-03-16 00:00:00. The chart has 1 Y axis displaying values. Data ranges from 78.21 to 264.33. Created with Highcharts 12.5.0 May '25 Aug '25 Oct '25 Feb '26 0 200 400 End of interactive chart. Market Cap \$315.31B PE (FWD) 29\.13 Yield \- Rev Growth (YoY) 34\.34% Short Interest 2\.12% Prev. Close \$193.39 [amd Summary](https://seekingalpha.com/symbol/AMD/virtual_analyst_report) Compare to Peers ### More on AMD ### [AMD, Celestica team up to bring Helios rack-scale AI platform to market](https://seekingalpha.com/news/4564749-amd-celestica-team-up-to-bring-helios-rack-scale-ai-platform-to-market#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined) ![](https://seekingalpha.com/images/users_profile/062/467/668/big_pic.png?io=w36) ### [AMD: The Trojan Horse In The Server Room](https://seekingalpha.com/article/4882644-amd-the-trojan-horse-in-the-server-room#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined) [Joseph Montezuma](https://seekingalpha.com/author/joseph-montezuma#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A2%7Cpos%3Aundefined) ![](https://seekingalpha.com/images/users_profile/049/853/134/big_pic.png?io=w36) ### [AMD's Next AI Catalyst: MI450](https://seekingalpha.com/article/4882460-amds-next-ai-catalyst-mi450#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined) [Yiannis Zourmpanos](https://seekingalpha.com/author/yiannis-zourmpanos#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A3%7Cpos%3Aundefined) ### [AMD ownership increases, Synopsys sees a decrease as fund managers alter portfolios](https://seekingalpha.com/news/4564454-amd-ownership-increases-synopsys-sees-a-decrease-as-fund-managers-alter-portfolios#source=section_asset%3Amore-on%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A4%7Cpos%3Aundefined) ### Related Stocks \| Symbol \| Last Price \| % Chg \| \|---\|---\|---\| \| [AMD](https://seekingalpha.com/symbol/AMD#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A1%7Csymbol%3Aamd) AMD \| 196\.58 \| 1\.65% \| \| Post: \| 196\.88 \| 0\.15% \| \| [AMD:CA](https://seekingalpha.com/symbol/AMD:CA#source=first_level_url%3Anews%7Csection%3Aright_rail%7Csection_asset%3Aabout%7Cline%3A2%7Csymbol%3Aamd%3Aca) AMD:CA \| 35\.98 \| 1\.67% \| - 1D - 5D - 1M - 6M - 1Y - 5Y - 10Y ###### Chart Line chart with 2 lines. View as data table, Chart The chart has 1 X axis displaying Time. Data ranges from 2026-03-11 09:30:00 to 2026-03-16 16:00:00. The chart has 1 Y axis displaying values. Data ranges from -7.2 to 0. Created with Highcharts 12.5.0 Mar 11 Mar 12 Mar 13 Mar 16 \-10% \-5% 0% End of interactive chart. 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Readable Markdown	![Digital abstract CPU . AI - Artificial Intelligence concept. Neural network. Machine Learning Concepts. Innovations and technology](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/2187761440/image_2187761440.jpg?io=getty-c-w750) Vertigo3d/E+ via Getty Images As I mentioned in [my previous article](https://seekingalpha.com/article/4757364-amd-low-valuation-makes-no-sense#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) on Advanced Micro Devices, Inc. ([AMD](https://seekingalpha.com/symbol/AMD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), the stock has never really been "loved" by the market in my 8 years of covering it. And at the beginning of 2025, when I last covered the stock, AMD's valuation kept decreasing due to seemingly unfounded skepticism, which did not make sense to me. [![Roman Luzgin's ratings for AMD](https://static.seekingalpha.com/uploads/2025/8/22/42686696-17558687879629757_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/22/42686696-17558687879629757_origin.png) Seeking Alpha Now, since then, AMD stock has finally started to recover, and it seems to be on track to reach my price target of \$223 by the end of the year, which I expressed in my previous article. While some investors may become cautious about buying AMD shares, since the price has almost doubled over the last four months, the local pullback we are currently seeing presents a solid chance to invest in the company for the medium to long term. Therefore, I reiterate my Strong Buy rating for AMD. ## The market is finally recognizing AMD's potential in the AI market Of course, one of the primary reasons to be bullish about AMD is its potential in the AI semiconductor market. For some time, the market seemed to discount AMD's efforts in building AI-focused chips, and there was a somewhat strong sentiment that the company had "lost the war" to Nvidia ([NVDA](https://seekingalpha.com/symbol/NVDA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). This was clearly a wrong oversimplification of the AI hardware business dynamics, and now the market has finally started to recognize that a) AMD is a strong player in AI semiconductors, and b) being the "[second best](https://seekingalpha.com/article/4806361-amd-being-second-best-is-plenty-good#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)" might not even be as bad as some would suggest. AMD's Data Center revenue only [increased](https://seekingalpha.com/filing/10271237#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) 14% year-over-year in the latest quarter, but the main reason for that was the sale restrictions to China. For more details, there is a [solid roundup by James Foord](https://seekingalpha.com/article/4816881-amd-tech-gap-closing-market-share-will-follow-then-valuation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) here on Seeking Alpha. In general, I believe AMD is progressing well in its Instinct AI accelerators, with a solid launch of the MI350 series of products, which [offer](https://zoomax.com/low-vision-information/amd-mi350-vs-nvidia-blackwell-a-comparative-analysis-of-next-generation-chips/) comparable performance to Nvidia's Blackwell B200, and new [partnerships](https://seekingalpha.com/article/4809195-advanced-micro-devices-inc-amd-q2-2025-earnings-call-transcript#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) like the one with Oracle ([ORCL](https://seekingalpha.com/symbol/ORCL#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)), which is building a 27,000-plus node AI cluster with AMD's MI accelerators and EPYC Turin CPUs. > From a competitive standpoint, MI355 matches or exceeds B200 in critical training and inference workloads and delivers comparable performance to GB200 for key workloads at significantly lower cost and complexity. For upscale inferencing, MI355 delivers up to 40% more tokens per dollar, providing leadership performance and clear TCO advantages. AMD is also [expected](https://seekingalpha.com/article/4810938-amd-inference-is-the-future-of-ai#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to release MI400 accelerators next year, which should make the company even more competitive in the AI accelerator market. While AMD might not reach Nvidia's level of sales, I believe the company will still benefit immensely from the AI market since its chips provide great inference performance for less money. And because more AI functionality is being integrated into everyday tools used by a lot of people, (it seems like AI is now a part of every single software on the market) the need for powerful and cost-efficient inference chips will only increase over time. This is not to mention AMD is still a big player in the data center CPU market, where the only major competition is the struggling Intel ([INTC](https://seekingalpha.com/symbol/INTC#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). (more on that later) As a result, AMD does not need to reach Nvidia's market share to still increase its data center sales significantly in the coming years. Since big tech is [expected](https://finance.yahoo.com/news/big-techs-ai-investments-set-to-spike-to-364-billion-in-2025-as-bubble-fears-ease-143203885.html) to spend \$364 billion on AI CapEx this year alone, even a single additional percentage point in market share could lead to a 10% revenue increase for AMD. ## The company's client and data center businesses continue to benefit from Intel's struggles In the CPU and desktop GPU segments, AMD still has solid room to grow as its primary competitor, Intel, continues to struggle and lose market share. In the desktop market, AMD has already [overtaken](https://www.cpubenchmark.net/market_share.html) Intel for the first time since 2006. In Q2, AMD's Client segment surged by another 67% year-over-year, driven by Ryzen desktop CPUs. [![Desktop market share of AMD vs Intel](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255186492524_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255186492524_origin.png) PassMark AMD's laptop market share continues to increase as well, and I expect this dynamic to accelerate in the near future. Here, [my thesis from 2019](https://seekingalpha.com/article/4233705-amd-ces-2019-marks-another-great-but-difficult-year-ahead#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) — that AMD has an impressive mobile offering which should help the company grow its sales significantly — still holds. AMD [seems](https://seekingalpha.com/article/4702926-amd-yet-another-buying-opportunity-rating-upgrade#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to be the processor of choice for many Copilot-powered laptops with local AI inferencing. [![Laptop market share of AMD vs Intel](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255561906095_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255561906095_origin.png) PassMark The market share expansion is nowhere more evident than in the server market. AMD's Turin EPYC processors are [reported](https://www.bacloud.com/en/blog/185/server-cpu-showdown-amd-epyc-turin-vs-intel-xeon-granite-rapids-and-sierra-forest.html) to outperform Intel's latest Xeon chips, so I expect more companies to choose the former in the coming quarters. During its peak in Q4 2021, Intel [generated](https://seekingalpha.com/article/4481877-intel-corporation-2021-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) \$7.3 billion in Data Center Group sales, so AMD can easily reach comparable levels of revenue in the medium term, unless Intel effects an unlikely quick turnaround. For context, AMD generated \$3.2 billion from its data center segment. This also includes AI accelerators, which were clearly not offered by Intel in 2021. [![Server market share of AMD vs Intel](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255743829079_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/25/42686696-17561255743829079_origin.png) PassMark ## AMD's gaming business should recover soon When it comes to the gaming business, AMD has had a difficult couple of years, with this segment of revenue declining significantly. This was one of the biggest issues I saw after the Q4 results — AMD's gaming revenue in the quarter [dropped](https://seekingalpha.com/article/4754845-advanced-micro-devices-inc-2024-q4-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) by 59% year-over-year, and full-year 2024 gaming sales decreased by 58%. This was an alarming dynamic and it likely became the reason why the company started to combine the gaming and client revenue in its reports [starting](https://seekingalpha.com/article/4782558-advanced-micro-devices-inc-2025-q1-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) with Q1 this year. There were several reasons for the gaming revenue decrease, such as general [stagnation](https://best-of-gaming.be/wp-content/uploads/2024/09/2024_Newzoo_Global_Games_Market_Report.pdf) in the video games market, the current console generation starting to reach maturity, and intensified competition from Nvidia which offered a better software/hardware integration for not much more money. However, AMD's gaming revenue has already started to recover in the latest quarter, and I expect the company's gaming business will be fine long term. In more detail, in Q2 this year, AMD's gaming sales surged by 73%, from \$648 million last year to \$1,122 million now. The company names two major drivers of this growth — a "large double-digit" growth in the console semi-custom segment and strong sales of the new Radeon 9000 series graphics cards. On the latter, [the review roundup](https://www.windowscentral.com/hardware/cpu-gpu-components/amd-rdna-4-review-roundup) on AMD's new gaming GPUs is overwhelmingly positive, and major outlets state that "Nvidia finally has some major competition." The company itself claims that the RX 9060 XT GPU offers the "best performance-per-dollar" and that the demand outpaced supply in Q2. From my quick glance at the [gamers' sentiment](https://www.reddit.com/r/Amd/comments/1j06utb/all_you_need_for_gaming_amd_rdna_4_and_rx_9000/) about the new GPUs on Reddit, it seems that AMD delivered exactly what everyone needed at a very affordable price. Therefore, it is likely the positive momentum will continue in the near future, especially with the holiday season coming up, and AMD's gaming GPU business should at least stabilize for the rest of 2025. What should also help AMD is the significant number of big video game titles releasing in the second half of 2025. The [list](https://www.gamespot.com/articles/2025-upcoming-games-release-schedule/1100-6526471/) includes such anticipated games as: - Take-Two's ([TTWO](https://seekingalpha.com/symbol/TTWO#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) new Mafia and Borderlands: both are very big franchises with strong player counts; - EA's ([EA](https://seekingalpha.com/symbol/EA#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) Battlefield 6: the game [had](https://www.tomshardware.com/video-games/pc-gaming/battlefield-6-reaches-all-time-record-half-a-million-concurrent-players-on-steam-520k-open-beta-surpasses-every-call-of-duty-ever-made-in-player-count) a record half a million concurrent players during the beta test and is likely to sell well thanks to positive reviews; - Microsoft's ([MSFT](https://seekingalpha.com/symbol/MSFT#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) titles like The Outer Worlds 2 and the new Call of Duty. These games are extremely popular, but more importantly, they are hardware-demanding as well, which is likely to prompt many players to upgrade their systems with new CPUs and GPUs. And since AMD has very solid offerings in terms of price-to-performance combination, gaming hardware revenue should see a bump in Q3 and Q4. Additionally, in the console business, AMD has recently [signed](https://news.xbox.com/en-us/2025/06/19/xbox-amd-next-generation-xbox/) another multi-year partnership with Microsoft to develop chips for the next generation of consoles, handheld devices, PCs, and cloud. This collaboration is huge for AMD as it covers a wide range of devices, and cloud gaming is especially interesting here. AMD is also [expected](https://www.tweaktown.com/news/106625/playstation-6-specs-leak-update-amd-robin-apu-teased-with-powerful-rdna-5-gpu-zen-cpu/index.html) to power Sony's ([SONY](https://seekingalpha.com/symbol/SONY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)) PlayStation 6, as it reportedly [won](https://www.ign.com/articles/sonys-playstation-6-chip-contract-reportedly-in-the-hands-of-amd) a contract in 2022 over Intel. Xbox and PlayStation together [account](https://www.news.market.us/gaming-console-statistics/) for about a 70% share of the console market, which is expected to reach \$25.3 billion next year and \$26.7 billion by 2029. Since SoCs are [responsible](https://www.engadget.com/2013-11-26-teardown-suggests-xbox-one-manufacturing-cost-of-471.html) for about 20-22% of console costs, AMD should make \$3.5-4 billion on average from consoles alone each year in the next five years, with additional revenue coming from gaming PCs and cloud sales. This should provide a nice boost of additional revenue to the company that is already doing well in other segments. ## AMD's financial performance is solid with little financial risks Regarding AMD's financials, the company appears to be in decent shape, from my point of view. So far this year, AMD's revenue increased by 36% in Q1 and 32% in Q2, and it is [expected](https://seekingalpha.com/symbol/AMD/earnings/estimates#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) to grow by an average of about 22% in the next three years. The company's earnings are estimated to increase even faster than revenue, with a 3-year average growth of about 32%. AMD also reiterated in its latest earnings call that the margins are expected to improve significantly once there is a sufficient ramp-up in its AI MI-series accelerators and once its China-aimed MI308 GPU inventory is released. AMD's current ratio (current assets/current liabilities) was at a healthy level of 2.5 in the latest quarter. AMD's free cash flows were also at a decent level of \$1 billion in Q2, so there is very little financial risk here, especially with \$5.8 billion in cash and equivalents and just \$3.2 billion in long-term debt, which the company raised recently mostly just to cover the acquisition of ZT Systems. Additionally here, the company continues to increase its R\&D costs in a healthy way, with a 20% growth in Q2. AMD's SG\&A expenses did surprisingly surge by 55% in the quarter, but it seems to have been related to \$83 million in transaction costs related to the ZT Systems acquisition again and the "go-to-market activities in the Client and Gaming segment." This dynamic needs to be monitored in the future, but I expect it to stabilize in the next quarters. Generally, although AMD does need to improve its margins in the future, the company appears financially healthy and should be able to continue investing in its technology without the need to borrow money in the short to medium term. ## The stock's valuation remains low despite the recent surge Even though AMD's stock has increased in price significantly in the last months, the company's valuation still remains low and offers some margin of safety. AMD's 2-year forward P/E is [lower](https://seekingalpha.com/comparison/new/MCUyQ2FtZCUyQ252ZGElMkNpbnRjJTJDcWNvbSUyQ2FybQ==#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) than that of most competitors, including Nvidia, Intel, and Arm Holding ([ARM](https://seekingalpha.com/symbol/ARM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link)). Its EV/EBITDA ratio is relatively high, but it should improve quickly due to the aforementioned improvements in margins expected in the coming quarters. [![Valuation comparison between AMD and peers](https://static.seekingalpha.com/uploads/2025/8/28/42686696-17564232183525448_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/28/42686696-17564232183525448_origin.png) Seeking Alpha With an estimated 3-year average earnings growth of about 32% and a PEG ratio of 1.5, AMD can trade at a P/E ratio of 48 without being considered overvalued. This would lead to a stock price of \$288, based on a 2026 EPS of \$6. While this price might be a stretch in the short term, my previous 2025 price target of \$223, estimated using a DCF analysis, still holds. ## Risks and key takeaways Acknowledging some risks and negatives, AMD continues to face significant competition from Nvidia, which recently [reported](https://seekingalpha.com/news/4489760-nvidia-non-gaap-eps-of-1_05-beats-by-0_04-revenue-of-46_74b-beats-by-610m#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) another stellar quarter with \$46.74 billion in sales and a growth of 55.6%. Clearly, Nvidia continues to lead the AI hardware market, so AMD needs to keep innovating to remain competitive, which means more R\&D expenses. Additionally, there is a chance Intel might start its slow resurgence with the latest [\$5.7 billion grant](https://seekingalpha.com/news/4490161-intel-receives-57b-of-us-stake-from-chips-grants-cfo#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) from the U.S. government. AMD's AI growth also depends on whether any new restrictions related to China will come into effect. In the latest quarter, the company's data center revenue and margins [deteriorated](https://seekingalpha.com/article/4809196-advanced-micro-devices-inc-2025-q2-results-earnings-call-presentation#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link) significantly due to export restrictions, which "effectively eliminated MI308 sales" to China. Even though AMD does not include China sales in its guidance, the company clearly needs this source of revenue to improve its growth, not to mention better clarity to better manage its inventory. [![AMD's data center revenue in Q2 2025](https://static.seekingalpha.com/uploads/2025/8/28/42686696-1756424549626482_origin.png?io=w640)](https://static.seekingalpha.com/uploads/2025/8/28/42686696-1756424549626482_origin.png) AMD Q2 presentation Still, despite all the risks and intense competition, AMD remains attractive for investment. With impressive strength in the Client segment, solid Data Center performance, especially with its EPYC CPUs, and a promising future in the Gaming business, AMD should be able to continue growing substantially in the next years. Even though the stock has already doubled from its April lows, AMD still has some margin of safety, with a fair price of about \$223, which I estimated previously. Therefore, AMD remains a Strong Buy. 3\.54K Followers Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, MSFT, EA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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