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AMD shares fell around 17% after its fourth quarter and full year results, despite record revenue and earnings.
The company highlighted growth in AI and data center products, along with new AI partnerships and product launches.
Investor focus turned to a cautious first quarter revenue outlook and a more gradual near term view on AI related demand.
For investors watching NasdaqGS:AMD, the sharp move stands out against a longer track record of strong returns, with the stock up 74.7% over the past year and 131.3% over three years. Even after the selloff, the current share price of $192.5 reflects high expectations around AI and data center opportunities, which makes any hint of slower near term progress especially sensitive.
Looking ahead, a key question is how quickly AMD can translate its AI roadmaps, new products, and partnerships into sustained revenue growth that aligns with investor expectations. The recent reaction underlines that the market is closely tracking the timing and scale of AI related demand, not just headline records in quarterly results.
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NasdaqGS:AMD 1-Year Stock Price Chart
Why Advanced Micro Devices could be great value
✅ Price vs Analyst Target: At US$192.50, AMD trades about 33% below the US$288.07 analyst price target.
✅ Simply Wall St Valuation: Simply Wall St estimates AMD is trading at roughly 46% below its fair value.
❌ Recent Momentum: The 30 day return of about 10.2% decline signals weak short term sentiment after the results.
Check out Simply Wall St’s in depth valuation analysis for Advanced Micro Devices.
📊 The sharp drop, despite record results, suggests the market is very focused on the pace of AI related growth and guidance rather than recent earnings strength.
📊 Watch how AI and data center revenue trends track against guidance, as well as how the current P/E of 73.5x compares to the Semiconductor industry average of 40.4x over time.
⚠️ One flagged risk is significant insider selling over the past 3 months, which some investors may weigh alongside the cautious near term AI outlook.
For the full picture including more risks and rewards, check out the complete Advanced Micro Devices analysis.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.