Is Advanced Micro Devices Stock Heading for $200 in 2025?

Shares of Advanced Micro Devices (NASDAQ: AMD) surged to new highs at the beginning of 2024, but mixed business performance across the company's operating segments has weighed on the stock for most of the year. After reaching a high of $227, the shares are down 44% year to date at the time of writing.The dip could be an excellent buying opportunity. While the stock's valuation looks expensive -- trading at 112 times trailing 12-month earnings per share -- the price-to-earnings (P/E) multiple is much lower when looking ahead to next year's earnings estimates. Strong demand for data center chips is not only driving strong revenue growth, but also driving higher margins, which could send the stock soaring back toward the $200 level in 2025.AMD's chip sales to data centers are its largest revenue source, raking in $3.5 billion last quarter for a year-over-year increase of 122%. The triple-digit growth helped offset weak demand in the company's embedded and gaming segments. Overall, AMD's total revenue grew 18% year over year in the third quarter, up from the previous quarter's 9% increase.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool