Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 14 Jan, 26 | AMD | Buy | USD 220.97 | USD 232.0 | USD 250.0 | 7 days | Closed |
13.62%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Advanced Micro Devices, Inc. operates as a semiconductor company internationally. It operates in three segments: Data Center, Client and Gaming, and Embedded. The company offers artificial intelligence (AI) accelerators, microprocessors, and graphics processing units (GPUs) as standalone devices or as incorporated into accelerated processing units, chipsets, and data center and professional GPUs; and embedded processors and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing units, field programmable gate arrays (FPGA), system on modules, AI network interface cards, and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen AI, AMD Ryzen PRO, AMD Ryzen Threadripper, AMD Ryzen Threadripper PRO, AMD Athlon, and AMD PRO A-Series brands; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; professional graphics under the AMD Radeon Pro graphics brand; and AI and general-purpose compute infrastructure for hyperscale providers. The company offers data center graphics under the AMD Instinct accelerators and Radeon PRO V-series brands; server microprocessors under the AMD EPYC brand; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, and AMD R-Series and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo and Pensando brands. It serves original equipment and design manufacturers, public cloud service providers, system integrators, distributors, and add-in-board manufacturers. The company was incorporated in 1969 and is headquartered in Santa Clara, California.
Client and Gaming Segment Surge: Q3 FY25 Client and Gaming revenue of USD 4.05 billion grew 73% versus USD 2.34 billion in Q3 FY24
Operating Income Growth: Q3 FY25 GAAP operating income of USD 1.27 billion rose 75% from USD 0.72 billion in Q3 FY24
Embedded Segment Revenue Decline: Q3 FY25 Embedded revenue of USD 857 million declined 8% from USD 927 million in Q3 FY24
Rising Operating Expenses: Q3 FY25 GAAP operating expenses of USD 3.51 billion increased 30% from USD 2.70 billion in Q3 FY24
AMD’s earnings trajectory remains sensitive to AI demand visibility, export control restrictions, and execution risk associated with scaling next-generation data center GPU platforms, which could introduce volatility despite strong underlying growth momentum
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 220.97 | 198.0 | 232.0 | 250.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue Growth Driven by Broad-Based Demand: Advanced Micro Devices, Inc. delivered a record financial performance in Q3 FY25, supported by strong execution across its Data Center, Client, and Gaming businesses. Revenue for the quarter rose to USD 9.25 billion in Q3 FY25, representing a 36% year-on-year increase from USD 6.82 billion in Q3 FY24, reflecting broad-based demand for high-performance computing solutions across AI, server, and PC end markets.
Stable Gross Margins Amid Product Mix Shifts: Despite significant revenue growth, AMD maintained margin discipline. GAAP gross margin improved to 52% in Q3 FY25 from 50% in Q3 FY24, while non-GAAP gross margin remained stable at 54% in both periods, indicating effective pricing and cost control despite a rapidly evolving product mix driven by AI accelerators and next-generation processors.
Strong Operating Leverage and Profitability Expansion: Operating income expanded meaningfully as higher revenue more than offset increased R&D and go-to-market investments. GAAP operating income rose to USD 1.27 billion in Q3 FY25 from USD 0.72 billion in Q3 FY24, while non-GAAP operating income increased to USD 2.24 billion from USD 1.72 billion, underscoring improved operating leverage.
Earnings Growth Supported by Scale and Mix Improvement: AMD’s earnings trajectory strengthened further, with GAAP diluted EPS increasing to USD 0.75 in Q3 FY25 from USD 0.47 in Q3 FY24, while non-GAAP diluted EPS rose to USD 1.20 from USD 0.92. The improvement was primarily driven by revenue scale, higher-margin products, and disciplined expense management.
Data Center Segment Anchored by AI and EPYC Momentum: The Data Center segment remained a core growth engine, with revenue increasing to USD 4.34 billion in Q3 FY25, up 22% year-on-year. Growth was driven by strong adoption of 5th Gen EPYC processors and a rapid ramp in Instinct MI350 AI accelerators, partially offset by higher R&D investments to support future AI platforms.
Client and Gaming Outperformance Offsetting Embedded Weakness: The Client and Gaming segment delivered exceptional performance, with revenue rising 73% year-on-year to USD 4.05 billion, supported by record Ryzen processor sales and strong semi-custom demand. In contrast, the Embedded segment experienced a cyclical slowdown, with revenue declining 8% year-on-year to USD 857 million, reflecting softer end-market demand despite sequential improvement.
Strengthened Balance Sheet and Cash Generation: AMD exited Q3 FY25 with a robust balance sheet, generating USD 1.8 billion in operating cash flow and USD 1.5 billion in free cash flow, while cash and short-term investments increased to USD 7.24 billion. Total debt remained stable at USD 3.22 billion, providing financial flexibility to support ongoing AI and data center investments.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Advanced Micro Devices, Inc. (NASDAQ: AMD) at the closing market price of USD 220.97, as on Jan 13, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Semiconductors
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AMD Advanced Micro Devices Inc |
24.89 4.86% | 537.37 | 108.58 | 40.98 | 13.39 | 7.12 | 12.75 | 60.70 |
| NVDA NVIDIA Corporation |
6.04 2.95% | 210.69 | 62.11 | 36.76 | 36.43 | 51.65 | 36.19 | 61.96 |
| AVGO Broadcom Inc |
18.45 4.70% | 411.35 | 78.55 | 35.84 | 27.93 | 23.69 | 28.47 | 52.08 |
| TSM Taiwan Semiconductor Manufacturing |
29.97 6.94% | 462.12 | 19.45 | 15.92 | 0.24 | 4.85 | 0.22 | 0.30 |
| QCOM Qualcomm Incorporated |
13.14 6.17% | 226.11 | 28.37 | 17.95 | 5.27 | 8.29 | 5.36 | 18.39 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 14, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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