How Advanced Micro Devices Stock Gained 80%
Advanced Micro Devices (AMD)’s stock soared nearly 80%, fueled by sharp revenue growth and healthier margins, even as valuations eased slightly. Behind this surge: a potent mix of AI-driven demand, gaming wins, robust earnings, cautious China risks, and rising analyst optimism. Let’s dive into the story driving these moves.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 11172024 | 11172025 | Change | |
|---|---|---|---|
| Stock Price ($) | 134.9 | 240.5 | 78.3% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 24,295.0 | 32,027.0 | 31.8% |
| Net Income Margin (%) | 7.5% | 10.3% | 37.3% |
| P/E Multiple | 119.7 | 118.3 | -1.2% |
| Shares Outstanding (Mil) | 1,620.0 | 1,626.0 | -0.4% |
| Cumulative Contribution | 78.3% |
So what is happening here? The stock surged 78%, driven by a 32% rise in revenue and a 37% boost in net margin, while the P/E multiple slightly dipped 1.2%. Let’s explore the events behind these shifts.
Here Is Why Advanced Micro Devices Stock Moved
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- Data Center/AI Boost: Strong demand for EPYC CPUs & Instinct GPUs, with OpenAI partnership in late 2025.
- Client & Gaming Gains: Record Ryzen CPU sales (Zen 5, X3D) and new Ryzen Z2 handheld processors.
- Strong Q1, Q3 Earnings: Q1 and Q3 2025 revenue and EPS beat estimates, reflecting financial strength.
- China Export Controls: US export restrictions on MI308 chips to China impacted data center AI revenue.
- Analyst Confidence: Consistent Buy ratings and increased price targets due to AI roadmap and growth.
Our Current Assesment Of AMD Stock
Opinion: We currently find AMD stock relatively expensive. Why so? Have a look at the full story. Read Buy or Sell AMD Stock to see what drives our current opinion.
Risk: A good way to gauge AMD’s risk is to check how deep its drops have been in past market crises. The stock plunged over 83% in the Dot-Com Bubble and nearly 91% during the Global Financial Crisis. Even the inflation shock in 2022 dragged it down more than 65%. Smaller sell-offs like the 2018 correction and the Covid pandemic still hit AMD with declines around 49% and 34%, respectively. Strong fundamentals matter, but when markets turn sharply negative, AMD has shown it can still take serious hits.
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