Investors can fight to understand what to do from valuation of value Advanced micro devices (NASDAQ: AMD). Although his market capitalization fell by about half since last March, on the basis of her duration P/e ratio From 109, the stock still seems expensive.
Still, a deeper view suggests that maybe one of the cheapest semiconductor supplies In the market right now and the affordability that investors will not want to overlook.
The proposition of the AMD value becomes obvious when viewed beyond its expensive ratio of p/e. Based on his expectations of growth, his p/e ratio is 23. It is a two -year low for that metric. In addition, contrast with a rival Nvidia It is obvious when comparing the price and sale ratio (p/s). AMD -‘s sale multiple than about 7 – far below Nvidia – it seems to confirm that the stock is suitable.
Although AMD has become a leader in the CPU space, he lags behind in the GPU markets AI AI accelerator. Furthermore, the struggles of their games and built -in segments took a toll on his margin of revenue and profit margin, which further ordered investors to the shares.
However, AMD almost stopped a drop in revenue in its built -in segment. In addition, the appearance of Deepseek Ai model suggests that in the future, other companies will develop, train and manage AI models cheaper is less powerful hardware. This could increase the attraction of AMD cheap chips.
In the midst of these events, AMD’s financial financial services have already begun to improve. The revenue increased by 14% to $ 26 billion in 2024. In comparison, 2023, the upper line fell by 4%. Also, the net revenue for the year was $ 1.6 billion compared to $ 854 million in 2023. These improved measuring data pressured P/E and P/S, which make AMD sections better by buying at the current level.
Ultimately, Nvidia is likely to remain the leading ACcelerator. Nevertheless, the emptiness of the assessment between these two chips producers today seem to be AMD today.
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