Advanced Micro Devices Stock on the Edge: 3 Threats You Need to Know
Advanced Micro Devices (AMD) has stumbled before. It’s stock plunged > 30% in span of less than 2 months 14 times in multiple years, wiping out billions in market value, and erasing massive gains in single correction. If history is any guide, Advanced Micro Devices (AMD) stock isn’t immune to sudden, sharp downturns.
The Risk That Is Brewing
- AI Rivalry: Nvidia dominates AI, reporting Q3 2025 revenue of $35.1 billion, up 94% YoY, with data center revenue near $29.28 billion. AMD projects Q3 2025 GPU sales at $1.3 billion. Intel’s Gaudi 3 challenges MI300X, claiming 1.7x faster AI training than H100.
- x86 CPU Comeback: Intel’s Q3 2025 revenue reached $13.7 billion, with 63.3% server CPU share in mid-2025. AMD’s server CPU share grew to 36.5% in mid-2025, but Intel’s renewed focus and $5B Nvidia investment threaten gains.
- ARM Server Growth: The ARM-based server market is valued at $10.1 billion in 2025, growing to $35.1 billion by 2035 (13.3% CAGR). ARM holds 21.1% of server shipments in 2025, offering up to 45% lower power consumption per core than x86.
Love the AMD stock? Great. But don’t get too attached. Stocks crash. High Quality Portfolio lets you navigate that risk.
Is Risk Showing Up In Financials Yet?
- Advanced Micro Devices Stock Surged 120%, Here’s Why
- Advanced Micro Devices Stock To $143?
- Would You Still Hold Advanced Micro Devices Stock If It Fell Another 30%?
- Advanced Micro Devices Stock To $164?
- How Advanced Micro Devices Stock Gained 80%
- Pay Less, Gain More: MU Tops Advanced Micro Devices Stock
It certainly helps mitigate the risk if the fundamentals check out. For details on AMD Read Buy or Sell AMD Stock. Below are a few numbers that matter.
- Revenue Growth: 27.2% LTM and 11.7% last 3-year average.
- Cash Generation: Nearly 13.7% free cash flow margin and 8.3% operating margin LTM.
- Valuation: Advanced Micro Devices stock trades at a P/E multiple of 145.9
| AMD | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Semiconductors | – |
| PE Ratio | 145.9 | 23.6 |
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| LTM* Revenue Growth | 27.2% | 5.4% |
| 3Y Average Annual Revenue Growth | 11.7% | 5.2% |
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| LTM* Operating Margin | 8.3% | 18.7% |
| 3Y Average Operating Margin | 3.4% | 18.1% |
| LTM* Free Cash Flow Margin | 13.7% | 13.3% |
*LTM: Last Twelve Months
How Bad Can It Really Get?
When thinking about AMD’s risk in tough markets, the numbers tell the story. The stock plunged over 83% during the Dot-Com crash and nearly 92% in the Global Financial Crisis. Even the inflation shock in 2022 hit it hard, with a drop around 65%. Smaller selloffs like 2018 and the Covid dip still knocked it down by roughly 49% and 34%, respectively. So, no matter the positives around AMD, big market selloffs have taken a serious toll.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read AMD Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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