AMD Stocks: Buy, Sell, or Hold in 2025

AMD Shares Outperforming the Sector: Advanced Micro Devices (AMD) shares have risen 34% YTD in 2025, outperforming peers NVIDIA (27.8%) and Intel (22.7%). Strong demand for EPYC processors and emerging AI workloads are fueling investor optimism in the semiconductor sector.

EPYC Drives Cloud and Enterprise Growth: Adoption of AMD EPYC processors by hyperscalers is accelerating. Over 100 new cloud instances launched in Q2 2025, including Google and Oracle Turin instances, boosting global EPYC availability to 1,200. Enterprise adoption spans aerospace, telecom, and financial services.

Instinct Accelerators Strengthen AMD: AMD’s Instinct accelerators, including MI350, MI300, and MI325, are gaining traction with AI companies. Oracle is building a 27,000-node AI cluster using AMD hardware. MI355 matches NVIDIA’s B200 in key workloads at lower cost and complexity.

Strong Q3 2025 Guidance: AMD expects Q3 2025 revenues around $8.7B (+/- $300M), indicating 28% YoY growth. Client and Gaming segments show moderate gains, while Data Center revenues grow double digits on MI350 adoption and AI demand. Embedded segment recovery is anticipated.

Competition from NVIDIA Remains Stiff: NVIDIA continues to dominate AI and high-performance computing with Hopper 200 and Blackwell GPU adoption. In Q2 FY2026, NVIDIA’s Data Center revenue hit $41.1B, a 56% YoY increase, highlighting the intense competition AMD faces in AI infrastructure.

AMD Share Price Valuation Concerns: AMD shares are currently overvalued, trading at a forward 12-month price/sales of 7.1X, compared to the industry’s 3.46X and Intel’s 2.01X. The stretched valuation signals caution, suggesting investors may want to wait for a more favorable entry point.

Should You Buy, Sell, or Hold AMD Stock: AMD’s portfolio expansion and partner network support growth, but macro uncertainties and stiff NVIDIA competition limit near-term upside. Investors are advised to balance optimism with caution and consider waiting for a lower entry price before buying AMD shares. Please note that this information is only for educational purposes and is based on NASDAQ report. Investors are advised to do their thorough research before making any financial decisions.

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