‘Looks Like a Steal,’ Says Investor About AMD Stock

The thrill round Superior Micro Units (NASDAQ:AMD) over the previous twelve months has not precisely been white-hot. Whereas the AI increase lifted many boats, AMD discovered itself trailing the industry-dominating Nvidia and grappling with the repercussions of rising geopolitical tensions, tariff uncertainty, and fears of slowing AI capex spending.

AMD’s newest steerage suggests its Q1 2025 knowledge heart revenues will dip round 7% quarter-over-quarter – a determine that hasn’t completed the inventory any favors. All eyes at the moment are on Might sixth, when the corporate is about to report its FY Q1 2025 outcomes after the bell.

Nonetheless, not everybody’s bracing for disappointment. One investor, identified by the pseudonym The Asian Investor, is anticipating a shock to the upside.

“I believe AMD is set for a massive up-surge in 2025 and could more than reverse its most recent valuation losses, especially with the chip maker getting ready to launch new AI accelerators in the second half of FY 2025,” predicts the 5-star investor.

Whereas Asian Investor is predicting a “slight earnings beat” for the just lately concluded quarter, the investor is positively excited by AMD’s upcoming product pipeline for the remainder of this yr and into the following.

Particularly, Asian Investor factors to the Intuition MI350 AI accelerator – set to be unveiled in mid-2025 – and the MI400 AI, slated for 2026. The investor believes these signify a potent slew of catalysts that might turbocharge AMD’s revenues, which may assist the corporate pull even with or maybe surpass Nvidia’s knowledge heart development.

Positive, the specter of looming tariffs may throw a wrench into AMD’s momentum – a threat that’s exhausting to disregard. However in accordance with the Asian Investor, sturdy execution on its development technique may simply give AMD the resilience it must trip out the storm. The investor posits that AI spending is exhibiting no indicators of weakening, making AMD well-placed to take pleasure in huge beneficial properties going ahead.

“Tariffs are a distraction, AMD’s Data Center business is set to crush it in FY 2025… AMD’s shares are an absolute steal at its current price,” concludes The Asian Investor who charges AMD inventory a Sturdy Purchase. (To observe The Asian Investor’s monitor report, click on right here)

Wall Road additionally expects good tidings up forward. With 22 Purchase and 13 Maintain suggestions, AMD enjoys a Reasonable Purchase consensus score. Its 12-month common worth goal of $144.77 implies ~52% upside for the yr forward. (See AMD inventory forecast)

To search out good concepts for shares buying and selling at enticing valuations, go to TipRanks’ Finest Shares to Purchase, a software that unites all of TipRanks’ fairness insights.

Disclaimer: The opinions expressed on this article are solely these of the featured investor. The content material is meant for use for informational functions solely. It is vitally essential to do your personal evaluation earlier than making any funding.

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