Advanced Micro Devices Stock To $143?

-14.56%
Downside
216
Market
185
Trefis
AMD: Advanced Micro Devices logo
AMD
Advanced Micro Devices

Advanced Micro Devices (AMD) stock has fallen by 22.1% in less than a month, from $264.33 on 29th Oct, 2025 to $206.02 now. What comes next? We think that he stock could fall even more. The current correction, when put in context of stock’s Very High valuation, suggest possibility of further downside. A price of $143 is not out of question, especially considering that the stock has seen this level in the last 5 years. Read Buy or Sell Advanced Micro Devices Stock to see how we arrive at this opinion.

So should you wait before buying this dip? Perhaps. There is no perfect way to time the dips. Nevertheless, here is another perspective on AMD stock to help you make the decision. Historically, the median return for the 12-month period following sharp dips was 17%, with median peak return reaching 76%. We define sharp dip as stock going down 30% or more, in less than 30 day period.

Below, we get into details of historical dips and subsequent returns.

 
Historical Median Returns Post Dips
 

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Period Past Median Return
1M 2.8%
3M 3.1%
6M 32.5%
12M 17.4%

 
Historical Dip-Wise Details
 
AMD had 8 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered

  • 76% median peak return within 1 year of dip event
  • 262 days is the median time to peak return after a dip event
  • -29% median max drawdown within 1 year of dip event

30 Day Dip AMD Subsequent Performance
Date AMD SPY 1Y Peak
Return
Max
Drop
# Days
to Peak
Median     17% 76% -29% 262
4192024 -31% -4% -38% 25% -47% 82
9232022 -31% -12% 41% 90% -18% 262
10252018 -37% -7% 75% 78% -14% 263
2082016 -32% -10% 589% 606% -5% 364
10102014 -34% -4% -31% 22% -40% 118
10192012 -37% -0% 44% 113% -15% 272
7252012 -32% 1% -6% 16% -54% 358
10192011 -30% 1% -45% 74% -45% 148

 
Advanced Micro Devices Passes Basic Financial Quality Checks

Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.

Quality Metrics Value Quality Check
Revenue Growth (LTM) 31.8% Pass
Revenue Growth (3-Yr Avg) 12.9% Pass
Operating Cash Flow Margin (LTM) 20.0% Pass
Leverage (see below) Pass
=> Interest Coverage Ratio 26.9  
=> Cash To Interest Expense Ratio 63.5  

Not sure if you can take a call on AMD stock? Consider portfolio approach

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