‘Only the Beginning,' Says Investor About AMD Stock

Business Insider

2 days ago

Advanced Micro Devices (NASDAQ:AMD) stock offered little cause for celebration in the latter half of 2024 and into 2025. Despite generating strong revenue amid the ongoing AI boom, the chipmaker's share price tumbled, leaving investors out in the cold.
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That narrative, however, has shifted sharply in recent months. AMD's share price has skyrocketed 83% over the past three months, driven by renewed market optimism, a standout Q1 2025 earnings report, continued AI infrastructure investments by hyperscalers, and a landmark contract in Saudi Arabia.
In fact, one investor, known by the pseudonym Cash Flow Venue (CFV), believes that AMD's 'rally has just begun,' citing product traction and international tailwinds as signs of more upside ahead.
As supporting evidence, the investor points to the growing adoption of AMD's MI series GPUs by major tech players. With the Instinct MI350 already shipping and the MI400 expected to debut in 2026, AMD's data center strategy appears to be gaining real momentum.
'AMD doesn't slow down its pace, and while it still lags behind Nvidia, it doesn't have to overthrow it to secure a strong #2 position in the market, still securing high demand, growing and profitable sales, as well as customer relationships ensuring future growth prospects,' the investor added.
CFV is also buoyed by some recent regulatory developments, as the Trump administration has indicated its willingness to allow the export of advanced AI chips to China. This could reopen the door for AMD's advanced AI chips, specifically the MI308, to be exported to China.
Keep on Buying AMD Stock
Taken together, these developments give the investor confidence that AMD's rally still has legs, even with the stock trading at a heightened EV-to-EBITDA multiple of 36.8x.
'Given robust financials, product innovation, and renewed China access, I am raising my AMD rating to Strong Buy for continued upside potential,' exclaims CFV. (To watch Cash Flow Venue's track record, click here)
Wall Street, meanwhile, shows a mixed stance. AMD holds a Moderate Buy consensus rating based on 25 Buys and 10 Holds. However, the average 12-month price target of $144.45 suggests the stock may be overvalued by ~8% at current levels. (See AMD stock forecast)
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