AMD's Stocks Decline Amid Competitive Market Challenges

AMD's stocks have dropped 49% over the past year, as competition with NVIDIA remains fierce. Yet, opportunities may arise with a potential PC refresh cycle in 2025 that could enhance AMD's market share against Intel.

Date: 15-03-2025

AI Rating: 5

Stock Performance and Market Position

Shares of Advanced Micro Devices (AMD) have seen a significant decline of 49% over the past 52 weeks, indicating investor frustration and a tough competitive environment, particularly in comparison to NVIDIA. Despite the setbacks, AMD’s client segment is performing relatively well, gaining market share against Intel, which is noteworthy.

Client Segment Growth

AMD’s client segment, which accounted for $2.3 billion in revenue last quarter, constitutes about 30% of the company's total revenue. This indicates it plays a critical role, but it is not the primary driver of revenue. The growth seen here, including a 7% increase in desktop CPU market share to 27% and a 3% gain in laptops to nearly 24%, underscores a competitive edge in product performance over Intel, which is essential for future stock price movements.

PC Refresh Cycle Outlook

The anticipated PC refresh cycle in 2025, driven by Microsoft’s end of support for Windows 10, presents a potential boon for AMD. With analysts expecting a 3.7% increase in total PC shipments, AMD is well-positioned to capitalize through increased sales in its client segment, provided that it maintains its current performance edge over Intel.

Conclusion

While the focus remains largely on AMD’s data center segment, the improvement in AMD’s client segment could positively impact stock performance, especially with new partnerships and the upcoming refresh cycle. Investors should monitor these developments closely for future implications on stock valuation.

Stocks: AMD NVDA INTC MSFT DELL