42 Billion Reasons Why You'll Regret Not Buying This Growth Stock Right Now
Advanced Micro Devices (NASDAQ: AMD) investors have endured a difficult year thus far as shares of the chipmaker declined 54% Source: YCharts amid the broader stock market sell-off. But this could be an ideal time for savvy investors to buy the stock given its mouthwatering valuation.
AMD is now trading https://www.morningstar.com/stocks/xnas/amd/valuation at 27 times trailing earnings, which is a massive discount compared to the stock's five-year average price-to-earnings ratio of 100. The stock's forward earnings multiple of just 12.9 shows that its earnings are set to grow at a terrific pace over the next year. What's more, AMD's forward earnings multiple makes it cheaper than the Nasdaq-100's forward multiple of 20.8.
Buying AMD at these multiples looks like the right thing to do given its outstanding growth, especially considering that the chipmaker could sustain its momentum thanks to a massive opportunity in the data center business. Let's take a closer look at this opportunity and see why it could give AMD a solid boost in the long run.
Source Fool.com
