Would You Still Hold Advanced Micro Devices Stock If It Fell Another 30%?
Advanced Micro Devices (AMD) stock is down 13.7% in 5 trading days. The recent slide reflects renewed concerns around AI stock valuations and underwhelming guidance, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the AMD story?
Before judging its downturn reslience, let’s look at where Advanced Micro Devices stands today.
- Size: Advanced Micro Devices is a $363 Bil company with $32 Bil in revenue currently trading at $223.55.
- Fundamentals: Last 12 month revenue growth of 31.8% and operating margin of 9.4%.
- Liquidity: Has Debt to Equity ratio of 0.01 and Cash to Assets ratio of 0.09
- Valuation: Advanced Micro Devices stock is currently trading at P/E multiple of 109.9 and P/EBIT multiple of 118.4
- Has returned (median) 17.4% within a year following sharp dips since 2010. See AMD Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell AMD Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AMD stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AMD stock falls another 20-30% to $156 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- AMD stock fell 65.4% from a high of $161.91 on 29 November 2021 to $55.94 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 January 2024
- Since then, the stock increased to a high of $264.33 on 29 October 2025 , and currently trades at $223.55
| AMD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -65.4% | -25.4% |
| Time to Full Recovery | 461 days | 464 days |
2020 Covid Pandemic
- AMD stock fell 34.3% from a high of $58.90 on 19 February 2020 to $38.71 on 16 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 July 2020
| AMD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -34.3% | -33.9% |
| Time to Full Recovery | 128 days | 148 days |
2018 Correction
- AMD stock fell 49.1% from a high of $32.72 on 14 September 2018 to $16.65 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 10 June 2019
| AMD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -49.1% | -19.8% |
| Time to Full Recovery | 168 days | 120 days |
2008 Global Financial Crisis
- AMD stock fell 91.2% from a high of $20.35 on 1 January 2007 to $1.80 on 25 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 21 August 2018
| AMD | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -91.2% | -56.8% |
| Time to Full Recovery | 3556 days | 1480 days |
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