‘Load the Boat,’ Says Investor About AMD Stock – TipRanks
2025-04-23T01:01:06Z
Advanced Micro Devices (NASDAQ:AMD) has been under pressure for much of 2025, with its stock sliding well before the recent market turbulence sparked by Trump’s tar…
Advanced Micro Devices (NASDAQ:AMD) has been under pressure for much of 2025, with its stock sliding well before the recent market turbulence sparked by Trump’s tariff announcements.
Even after delivering record-breaking revenues in 2024, largely fueled by its booming data center business, AMD hit a wall heading into the new year. Its Q1 2025 forecast landed with a thud, projecting a 7% quarter-over-quarter revenue drop that took the wind out of investors’ sails.
The overall uncertainty in the markets has further contributed to the dropping share price, which is down almost 30% year-to-date and is off over 50% from its 52-week highs.
More recently, the Trump administration has introduced additional headwinds, by requiring new export licensing requirements in order to sell certain AI chips to China. AMD acknowledged that this development could cost the company some $800 million.
Still, not everyone is panicking. Investor Danil Sereda isn’t flinching, holding firm on his optimistic stance despite the fears buffeting both the company and the global marketplace.
“I think AMD is a great beaten-down GARP stock to consider for the long run, as the business growth is unlikely to go anywhere, even if tariffs hit,” explains the 5-star investor.
Sereda remains especially bullish on AMD’s growing foothold in AI. With hyperscalers like Meta and Microsoft leaning heavily on data center firepower, AMD’s deep integration into this high-demand ecosystem is, in his view, a strong reason to stay optimistic. In fact, over half of the company’s revenue now stems from its data center business.
In addition, the investor cites the intense demand for AMD’s cloud instance usage, which tripled year-over-year last quarter. Sereda is not worried that the policies emanating from 1600 Pennsylvania will upend this momentum.
“AMD’s key growth drivers – particularly AI and data center dominance outside of China – still remain largely intact, and that’s the most important thing to keep in mind,” Sereda opines.
While acknowledging the risks of a full-blown trade war, Sereda believes that many of these fears are already priced into AMD’s depressed share price. This, according to the investor, could be a real gift for investors.
“While the situation in China looks quite concerning, I don’t believe it fundamentally calls into question my long-term bullish thesis, especially given AMD’s increasing momentum in the AI and server markets globally,” affirms Sereda, who maintains a Strong Buy rating. (To watch Sereda’s track record, click here)
Wall Street seems to share the optimism. Despite the noise surrounding tariffs and trade tensions, AMD stock still commands confidence on the Street, with 22 Buys versus 12 Holds – enough to earn a Moderate Buy consensus rating. The average price target stands at $140.90, implying a potential upside of 63% over the next 12 months. (See AMD stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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