Why AMD May Be a Stock Worth Buying Despite Recent Struggles

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Well, well, well-if it ain’t the stock market showing off again, rising higher than a kite on a breezy day. The S&P 500, the Nasdaq Composite, and the Dow Jones are all up there, flirting with all-time highs. But don’t get too excited, for there are still a few poor souls left behind-stocks that have barely managed to crawl up from their bunkers, dust themselves off, and stretch their legs. One such weary stock is Advanced Micro Devices (AMD), so let’s ponder: is this the right moment to buy, or are we simply watching a cat trying to catch a laser pointer?

How Advanced Micro Devices’ Stock Has Performed

Now, let’s take a stroll down memory lane, and by “stroll,” I mean buckle up, because AMD’s performance the past three years has been more roller coaster than steady ride. From a humble start at around $56, AMD shot up like a firecracker during the summer of 2022, reaching a high of $211. But before we could even pop open the champagne, the stock came tumbling down, shedding nearly all its gains like a snake shedding its skin.

Now here we are, with AMD clawing back some of its lost ground, showing off a 31% rise this year. Not bad, eh? Though, it’s still a long way from its peak, hanging about 25% below the all-time high. A bit of a limp, but I reckon there’s still life in that horse.

What’s Next for AMD

So, let’s not beat around the bush-AMD’s stock has been like a mule with a sore leg, trying to get up but stumbling all over the place. But here’s the thing: AMD ain’t exactly a small fry. They’ve got their hands in the semiconductors, one of the hottest sectors in this here economy. They’re not going to dethrone Nvidia right away, mind you-Nvidia’s artificial intelligence chips are still the gold standard, preferred by many a high-flying developer. But don’t you dare count AMD out just yet. They’re making converts faster than a preacher at a revival meeting.

Just recently, who’s this? None other than Elon Musk, a fellow who might just have a thing or two to say about the future of tech, went and praised AMD’s chips, claiming that “AMD is now working pretty well for small to medium-sized models.” Well, hot dog! That’s the sort of endorsement you don’t get every day, and that’s music to the ears of any investor looking to pick up a few shares while they’re still reasonably priced.

It gets better. AMD is already cranking out its MI325 AI chips, with plans for the MI350 later this year and the MI400 in 2026. Now, with those plans in the works, AMD is gunning to steal some market share from Nvidia and put up a real fight in the booming AI chips arena.

Sure, AMD’s revenue might still be trailing Nvidia by a country mile (Nvidia is on track to rake in over $200 billion by 2026), but don’t be fooled-AMD is making progress, and slow and steady wins the race, right?

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Is AMD a Buy Now?

Here’s where it gets tricky. On the one hand, AMD’s foray into the AI chips market is looking pretty promising. They’ve got some solid chips on the way, and if they can keep up this pace, who knows? The future’s bright, like the promise of a hearty meal at the end of a long day.

But-and here’s the rub-AMD’s still got a mighty long road to travel. Nvidia’s sales are projected to hit $200 billion for fiscal year 2026, so AMD’s got a lot of catching up to do. Nevertheless, the AI market itself is growing by leaps and bounds, and that means AMD’s stock will likely see some steady growth too. It’s not going to shoot up overnight like a rocket, but a nice, consistent climb is certainly within the cards.

So, to sum up: should you buy AMD right now? Well, I reckon it’s safe to be cautiously optimistic. AMD is one to watch, and if you’re patient, there’s a chance you’ll see some nice returns in the years to come. Just don’t expect them to dethrone Nvidia anytime soon. That hill’s still pretty high, and Nvidia’s sitting on top, watching everyone else sweat below.

But hey, who doesn’t love a good underdog story? 😏

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2025-09-19 14:32