Tech Stocks AMD and TTD Face Challenges But Offer Opportunities

Tech stocks AMD and The Trade Desk show weak performance, with missed revenue forecasts creating buying opportunities for investors. The market remains too pessimistic on their growth potential, suggesting that now might be an opportune time to invest.

Date: 04-03-2025

AI Rating: 5

In the analysis, Advanced Micro Devices (AMD) reported a 24% increase in total revenue to $7.6 billion with a notable increase in non-GAAP earnings by 42% to $1.09 per diluted share. These figures suggest a strong performance in revenue growth and earnings per share. However, AMD's disappointment arose from missing data center sales estimates, particularly due to weaker-than-expected results in their AI business. This has led to a 16% drop in stock prices since the earnings report, which might negatively affect investor sentiment. Nonetheless, Wall Street predicts a robust earnings growth at a rate of 35% annually through 2026 for AMD, indicating long-term potential despite current challenges. The analysis mentions a favorable PEG ratio below 1, indicating that AMD's stock might be undervalued. Similarly, The Trade Desk experienced a revenue increase of 22% to $741 million, though it fell short of management’s expectations. Non-GAAP earnings increased by 44% to $0.59 per diluted share. The miss in revenue due to execution errors led to a steep decline in stock price by 42%. Despite these shortcomings, analysts foresee a 15% annual increase in earnings for The Trade Desk through 2026, which could signify future potential for recovery. Overall, both companies show signs of growth through earnings and revenue but face market skepticism that is weighing down their stock prices, creating a potentially opportune moment for investors willing to buy during this dip.

Stocks: AMD TTD