AMD: Still Growing, But Is It Enough?

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Alright, settle in, folks. We’re talking about Advanced Micro Devices (AMD +3.70%). They posted numbers, see? Good numbers. Very good. But, and this is a big but, the growth rate? It’s… slowing. Like a prized racehorse with a touch of arthritis. They’re launching these fancy new chips – all excited about Artificial Intelligence, which, let’s be honest, will probably just end up ordering us more cat videos – but the numbers tell a story. A story that says, “Hold your horses… or, in this case, your semiconductors.”

Is this a reason to panic and sell everything? Nah. But it is a reason to ask, “Is this still the rocket ship everyone thought it was, or is it more of a… moderately fast gondola?” We’ll investigate. And I promise, no interpretive dance.

AMD Expects… Less Growth. Oy Vey!

Last year, AMD’s stock shot up 77%. People were throwing money at it like it was a free buffet. The AI chips were the big draw. And, to be fair, they are growing. But growth isn’t a straight line, is it? It’s more like… a slightly wobbly staircase. A staircase built by a guy who had a little too much borscht.

In the last quarter of 2025, revenue was $10.3 billion, up 34%. Not bad, right? But the quarter before? 36%. And they’re predicting 32% for the current one. They’re even throwing in $100 million from selling chips to China, which, frankly, feels like they’re trying to distract us with a shiny object. It’s like a magician’s trick, only with silicon.

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Is This a Problem for AMD’s Stock? A Question for the Ages…

Look, 30% growth is still impressive. Most companies would kill for that. But Nvidia? They’re growing at over 60%. Over 60%! It’s like comparing a dachshund to a greyhound. And let’s talk valuation. AMD is trading at around 80 times earnings. Eighty! That’s… ambitious. It’s like betting your entire fortune on a horse named “Fluffy.”

If this growth slows down, investors might start getting nervous. And nervous investors? They sell. It’s a simple equation. So, should you invest in AMD over Nvidia? Well, Nvidia is cheaper, comparatively speaking, and growing faster. It’s like choosing between a sensible sedan and a rocket-powered pogo stick. Both get you places, but one is a little less likely to end in a fiery explosion.

AMD is still a good long-term hold, maybe. But be prepared for some volatility. The market is a fickle beast. It’ll love you one day and try to eat you the next. Especially if there’s a downturn. Then it’s every investor for themselves, and you don’t want to be the one holding the bag. Or, in this case, the slightly overpriced semiconductor stock.

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2026-02-10 01:03