Should Investors Buy the Correction in AMD Stock?
Since reaching $227 per share in early March, the stock price of Advanced Micro Devices (NASDAQ: AMD) has pulled back, falling nearly 15%. AMD has attracted increased attention because of its potential as an AI stock, and its valuation has risen to elevated levels. After the market correction, that valuation is lower now, and investors who missed the previous bull market might see this as a chance to add shares, while others might still consider the stock too expensive.
The question for investors is whether that lower valuation makes AMD a buy now or whether they should continue to stay on the sidelines. Let's see if an answer can be found.
Even with the recent pullback, the stock price is up roughly 85% over the last 12 months. Much of that gain likely came from an elevated interest in its line of AI chips, the Instinct MI300 Series Accelerators. Even though Nvidia (NASDAQ: NVDA) claims at least 80% of this market, the market researcher MarketDigits forecasts the AI chip market will have a compound annual growth rate of 38% through at least 2030. This allows the company to prosper despite claiming only a modest share of this market.
Source Fool.com
Advanced Micro Devices Inc. Stock
The stock is an absolute favorite of our community with 70 Buy predictions and no Sell predictions.
With a target price of 176 € there is a slightly positive potential of 17.73% for Advanced Micro Devices Inc. compared to the current price of 149.5 €.
