Should I buy AMD stock in 2025?

What is AMD?

How much is the AMD stock?

The price of AMD stock is rising this week. Currently, AMD shares are trading at $113.03, reflecting a slight 24-hour gain of $0.17 (+0.15%), while the weekly change stands at -2.47%. The company’s market capitalization is $183.27 billion, with an average 3-month trading volume of 40.83 million shares. AMD’s price/earnings ratio is 82.5, with no dividend yield, and a stock beta between 1.88 and 2.00, indicating higher-than-average volatility. Given strong growth catalysts in AI and recent earnings, AMD remains a dynamic, albeit volatile, choice for investors in the UAE seeking exposure to global semiconductor leaders.

Our full analysis on the AMD stock

After reviewing AMD’s latest quarterly financials and analyzing the stock’s performance trajectory over the past three years, our evaluation integrates a comprehensive dataset—ranging from key financial metrics to technical and peer benchmarking—processed through advanced proprietary models. Amidst an evolving technology landscape and mounting momentum in the semiconductor sector, a confluence of bullish signals appears to be emerging. So, why might AMD stock once again become a strategic entry point into the semiconductor arena in 2025?

Recent Performance and Market Context

AMD’s current share price sits at $113.03 (as of May 30, 2025), reflecting a period of relative consolidation following heightened volatility—a pattern not uncommon in leading technology stocks. The last twelve months have seen the stock retrace by 31.56%, a correction from previous record highs. However, this must be contextualized within a broader sector rotation, intermittent profit-taking, and outsized expectations driven by the artificial intelligence (AI) narrative, which have temporarily weighed on even the best-of-breed names in the chipmaker space.

Despite these headwinds, several positive macro and micro signals are beginning to materialize:

• The semiconductor sector is regaining strength, bolstered by robust global demand for AI infrastructure, growth in cloud data centers, and supply chain normalization after years of disruption.
• AMD’s Q1 2025 results surpassed expectations, with revenues of $7.4 billion (up 36% year-over-year), a net income surge of 55% to $709 million, and diluted EPS of $0.96 versus a $0.93 consensus—demonstrating operational resilience and a solid growth framework.
• Major recent events include the strategic acquisitions of Enosemi and ZT Systems, positioning AMD at the cutting edge of optics, AI hardware, and next-gen semiconductor innovation.

These developments are fostering renewed optimism around high-quality names like AMD, particularly among institutional investors seeking discounted entry points within emerging technology supercycles.

Technical Analysis

A technical review of AMD’s price action reveals a confluence of encouraging signs pointing toward a possible bullish inflection point:

• Relative Strength Index (RSI) readings are neutral (41.6–59.68), suggesting the stock is neither overbought nor oversold, and could be coiling for a significant move.
• MACD stands at 4.19 and is giving a bullish crossover, a classic precursor to trend acceleration when supported by rising volume.
• Support and resistance levels are clearly defined: the $108.59–$110.31 range has acted as a strong support zone, while immediate resistance hovers at $115.54. A decisive breakout above this could open the way to the next technical targets around the $127–$133 consensus price objective.
• Medium-term moving averages have started to flatten, indicating that recent selling pressure may be abating and paving the way for renewed upward momentum.

Collectively, the technical structure suggests that AMD could be transitioning out of a correction phase and entering the early stages of a new bullish cycle—an environment historically favorable for establishing medium- to long-term positions.

Fundamental Analysis

AMD’s fundamentals underpin the bullish case with robust growth across all strategic lines:

• Revenue Growth: The Q1 2025 top line expanded by +36% year-on-year, powered by surging demand for its data center solutions (+57%) and client segment (+68%).
• Profitability: Gross margin remains at a healthy 50–54%, and net margins expanded to 8%. Operating profits grew to $806 million, while strong free cash flow ($3.36 billion) reflects the company’s discipline and reinvestment capacity.
• Valuation: While the trailing P/E ratio is elevated at 82.5, the forward P/E drops markedly to 27–28, as consensus expects earnings to accelerate in the current cycle. The price-to-sales (P/S) ratio of 6.65 and price/book of 3.17 are within acceptable sector norms, especially given AMD’s innovation profile and earnings momentum.
• Structural Strengths: AMD commands increasing market share in CPUs, GPUs, and especially AI accelerators, competing fiercely with dominant names but maintaining a reputation for cutting-edge R&D, strategic agility, and a leadership team under Dr. Lisa Su that has consistently delivered against industry benchmarks.

When set against technology peers, these metrics reveal not only high growth but also operational discipline and a sustained innovation edge—crucial ingredients for compounding value over multiple years.

Volume and Liquidity

AMD’s liquidity profile reflects enduring market conviction:

• Average daily trading volume over the last 65 days is a massive 40.83 million shares, underlining deep institutional interest and an active retail base.
• With a float of 1.61 billion shares out of 1.62 billion outstanding, the stock remains highly liquid, facilitating dynamic price discovery and accommodating significant flows without undue volatility.

Such liquidity supports efficient entry and exit for a variety of investment strategies, while the level of participation often bodes well for future re-ratings, as momentum returns to the sector.

Catalysts and Positive Outlook

Several drivers position AMD as a premier beneficiary of structural shifts within global technology value chains:

• AI Supercycle: AMD’s data center and AI segments are experiencing breakneck demand from hyperscale, cloud, and enterprise customers. The rollout of next-generation accelerators and GPU platforms places AMD at the vanguard of AI hardware.
• Acquisition Strategy: The purchases of Enosemi and ZT Systems deliver differentiated technological advantages—such as silicon photonics and AI-optimized infrastructure—not yet fully priced in by the market.
• Product Pipeline: The diversification into embedded solutions and next-gen CPUs/GPU architectures ensures multi-year tailwinds, while AMD regularly exceeds execution milestones.
• ESG & Sustainability: Enhanced focus on energy efficiency and responsible manufacturing strengthens the investment narrative for global funds pivoting toward ESG-compliant tech.
• Sector Support: The global trend toward digitalization, regulatory tailwinds in several jurisdictions (including US/EMEA), and increased enterprise IT spending all provide a constructive backdrop.

Upcoming catalysts—including Q2 results (expected late July/early August), additional product launches, and further AI-driven demand inflections—could serve to validate and accelerate AMD’s valuation recovery.

Investment Strategies

For investors seeking compelling entry points, AMD currently offers three attractive profiles, considering both the technical and fundamental landscape:

• Short-Term Entry: The current price near technical supports ($108.59–$110.31), paired with rising MACD and stabilizing RSI, suggests an appealing zone for those looking for a rebound trade ahead of upcoming earnings.
• Medium-Term Opportunity: As momentum gathers and upward technical signals confirm, investors may consider positioning ahead of further AI/tech sector rotations, aiming to capture moves toward the $127–$133 analyst target range.
• Long-Term Accumulation: Given AMD’s leadership in AI, data center, and scalable innovation platforms, long-term portfolios could see significant compounding as secular digitalization trends intensify into the late 2020s.

In all cases, dynamic support levels and the timing of upcoming catalysts make present levels especially inviting for positioning ahead of renewed sector enthusiasm.

Is It the Right Time to Buy AMD?

AMD enters the second half of 2025 on robust financial footing, with double-digit revenue and profit growth, proven execution, and an enviable product strategy centered on the AI revolution and silicon innovation. Attractive forward valuations, combined with strong trading liquidity and an increasingly favorable technical setup, reinforce the notion that AMD may be entering a new phase of positive re-rating.

While sector risks and competition remain, the convergence of key technical supports, operational excellence, and imminent growth catalysts seem to represent an excellent opportunity for investors seeking exposure to the next wave of semiconductor and AI-driven technology. For those looking to align with industry-defining trends and benefit from AMD’s innovative momentum, the coming months could prove to be an opportune time to initiate or expand positions.

With the forward-looking environment suggesting AMD has both the fundamentals and the structural tailwinds to outperform, this tech leader deserves a fresh look from investors focused on long-term growth in the innovation economy.

How to buy AMD stock in the UAE?

Buying shares of AMD (Advanced Micro Devices, Inc.) online is simple and secure through a regulated broker in the UAE. Investors have two main options: spot (cash) buying, where you own the shares outright, and trading Contracts for Difference (CFDs), which lets you speculate on price movements without owning the underlying stock. Each approach suits different goals and risk profiles. To find the most suitable and affordable broker for your needs, see our comprehensive broker comparison further down the page.

Spot Buying

Spot (or cash) buying means purchasing real AMD shares through your brokerage, making you a direct shareholder of the company. In the UAE, most brokers charge a fixed commission per order, often between AED 10–30 (around $2.50–$8), or a small percentage of the trade amount, whichever is higher.

Example

Suppose AMD shares are trading at $113.03 each. With a $1,000 investment, you can buy approximately 8 shares (since $1,000 ÷ $113.03 ≈ 8.8, rounded down for brokerage fees). Assuming a typical $5 commission, your total cost would be around $1,000 for 8 shares. ✔️ Gain scenario: If the AMD share price rises by 10%, your holding increases in value to about $1,100. Result: That’s a $100 gross gain, or +10% return on your original investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price movements of AMD shares without owning them. You can trade both rising and falling prices, often using leverage to amplify your exposure. Instead of paying a direct commission, you'll face a spread (the difference between buy/sell prices) and, if you hold positions overnight, extra financing costs.

Example

You open a CFD position on AMD with $1,000 and apply 5x leverage, which gives you $5,000 market exposure. ✔️ Gain scenario: If AMD shares rise by 8%, your position gains 8% × 5 = 40%. Result: That’s a $400 gain on a $1,000 initial stake (excluding spread and overnight fees).

Final Advice

Before investing, always compare brokers’ fees, spreads, trading conditions, and market access, as these can significantly affect your returns. The right choice depends on your investment strategy, risk appetite, and whether you prefer long-term ownership or active trading. Explore our broker comparator below to identify the platform that’s best suited to your goals. Investing in AMD is accessible and flexible—take the time to choose the approach that matches your objectives.

Our 7 tips for buying AMD stock

The latest news about AMD

AMD achieved outstanding Q1 2025 financial results with record revenues and earnings growth across key segments. The company posted first quarter revenues of $7.4 billion, reflecting a 36% year-over-year increase, and delivered a net income of $709 million—up 55% versus Q1 2024. Performance was particularly strong in the Data Center and Client segments, recording annual growth rates of 57% and 68%, respectively. AMD also exceeded expectations with diluted EPS of $0.96, surpassing the consensus of $0.93. These robust financials reinforce AMD’s strong foundation and continued growth momentum, which is highly relevant for analysts tracking the company’s global and regional expansion, including growing commercial and governmental AI initiatives in the Middle East and AE.

AMD completed the acquisition of Enosemi, bolstering its position in AI and advanced optics technology. In late May 2025, AMD finalized the purchase of Enosemi, a silicon photonics specialist, reinforcing its capabilities in co-packaged optics for AI hardware and next-generation data centers. The integration of Enosemi’s technology supports energy-efficient, high-speed data transmission, which is instrumental for large-scale AI and cloud workloads. This technological reinforcement positions AMD to accelerate innovations that meet the needs of hyperscale clients, including those in AE’s rapidly modernizing enterprise and sovereign cloud sectors.

The Middle Eastern market, including AE, is witnessing rapid AI infrastructure investment, with AMD hardware gaining traction among regional hyperscalers and cloud providers. UAE-based technology leaders and government initiatives, such as national digital transformation and smart city projects, increasingly specify AMD data center components in their AI and high-performance computing deployments. As regional demand for sovereign cloud, high-performance AI processing, and data localization grows, AMD's expanding product portfolio and targeted acquisitions secure its relevance and presence in the AE tech ecosystem—bolstering its appeal both as a strategic supplier and investment target for local partners and institutional investors.

Analyst consensus remains strongly positive following Q1 results, with major institutions revising their outlook upward. Leading sell-side institutions—55 analysts in total—currently recommend an “Overweight” position on AMD, with a mean 12-month price target of $128.32 to $132.58. In the last week, HSBC upgraded AMD’s rating from “Underperform” to “Hold” based on the company’s solid quarterly results. The ongoing strength in guidance, with expectations of $7.4 billion in Q2 revenue (+27% year-over-year), further strengthens analyst confidence. This consensus reflects broad market optimism and supports continued attention from investors and decision-makers in AE and internationally.

AMD’s technology roadmap and recent strategic moves reinforce its resonance with digital transformation goals outlined in AE national development policies. The acquisitions of Enosemi and ZT Systems, enhanced focus on AI-optimized chips, and active engagement with hyperscalers support priorities articulated in UAE and GCC digital agendas for infrastructural autonomy and competitive, diversified economies. AMD’s commitment to innovation and supply chain flexibility underpins stable relationships with AE system integrators and government agencies. This alignment increases the likelihood of AMD’s solutions powering the regional expansion of AI, as well as sector-specific initiatives such as energy, financial services, and smart cities, making AMD a key enabler of AE’s digital future.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.