Bottom Is Out: AMD Has No AI GPU Growth To Brag About (Rating Upgrade)

(10min)

Summary

  • Advanced Micro Devices, Inc. reported Q1 2025, but didn't report its AI GPU sales, and CEO Lisa Su dodged Q&A about AI GPU growth. The bottom is out. We're upgrading AMD to a buy.
  • AMD stock is cheap at current levels (underperforming semis) with potential for upside from CPU sales that can offset what is now obviously lackluster AI-GPU growth.
  • Tariff pull-ins could be playing a bigger part than management makes it seem in the better-than-expected guide and print for the quarter.
  • We recommend investors add AMD to their portfolio, but not snooze on it because in about two quarters, AMD’s risk-reward profile could shift heavily for the worse.
  • Looking for a portfolio of ideas like this one? Members of Tech Contrarians get exclusive access to our subscriber-only portfolios. Learn More »

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Investment Thesis

Advanced Micro Devices, Inc. (NASDAQ:AMD) Q1 2025 earnings are out, and we are ready to put the stock back on our buy list for what we expect to be a trade (not

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This article was written by

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Tech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector.

They run Tech Contrarians, an investing group providing institutional-level company research to individual investors. Utilizing a live portfolio with quarterly updates, bi-weekly newsletters, and answering questions daily via chat, Tech Stock Pros aims to demystify investing in the technology sector. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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