A revolution of several billion dollar trading view news

AMD is about to extend a larger AI-controlled extension and projects double-digit growth in 2025, since the dominance of the data center and the introduction of AI accelerators will be increased.

AMD’s record -breaking AI

AMD delivered a record of $ 25.8 billion in 2024, growth of 14% compared to the previous year. The data center segment put itself in the limelight, with the annual income of $ 12.6 billion almost doubled in order to speed up the cloud acceptance, AI accelerator growth and the expansion of the EPYC CPU markets.

In the meantime, the customer segment increased by 52% with $ 7.1 billion compared to the previous year with the support of AI-controlled Ryzen processors and the restoration of PCs. In the meantime, both the games and the embedded segments achieved a goal with game income, which decreased by $ 2.6 billion compared to the previous year, since a cyclical decline in the sale of consoles and embedded income by $ 3.6 billion due to the normalization of the inventions in the amount of $ 3.6 billion sinks. In the middle of this headwind, the rising margins continued to AMD and disciplined capital allocation, the operating efficiency.

In the fourth quarter of 2024, the income at AMD was $ 7.7 billion, 24% compared to the previous year, 12% sequential growth. A turnover of $ 3.9 billion came from the data center segment, growth of 69% compared to the previous year, which reinforces the dominance of AMD in the field of AI and cloud computing. Mi300x was installed at Meta META A breakthrough in the AI ​​-GPU -Roadmap of AMD, such as the ROCM introduction in the hyperscalers, was successful for inference workload, which increased the position of the AMD GPUS as an practical alternative to the CUDA ecosystem of NVIDIA Nvda.

The customer provided strong results of $ 2.3 billion, which indicates the introduction of AI PCs and the continued market share of the CPU market, while the income from the gaming sector has decreased by 59% in the year, as well as embedded income due to the weak industrial demand by 13% in the annual comparison. Despite these results, the stock market reacted carefully when the income of 7.1 billion US dollars (+30% yoy, but -7% in succession) arrived from AMD for the first quarter of 2025.

The analysts were concerned about the income in the second half of the data center, but investors calmed down from the second half in AI accelerators, in particular through the introduction of the MI350 in the course of the year. CEO LISA SU put on the introduction of the MI350 from the end of 2025 to the middle of the year and set the stage for strong growth of the AI ​​acceleration market at $ 120 billion in 2030.

AMD’s KI expansion: the way to billions and the fight for the market share

With a view to the future, AMD projects double -digit growth in 2025 income and EPS, with the AI ​​being the growth driver. The long-term AI roadmap is impressive, and Lisa SU indicates that the company will scale the income of AI accelerators from $ 5 billion in 2024 to ten billion a year in the next few years.

The growing market share of the KI -GPU is a primary area to impair NVIDIA’s market dominance on the KI -GPU market by competitive AI training skills, the ROCM adoption growth and the prices by the AI ​​training skills. The sustainability of market penetration is dictated in the workload of Enterprise AI and at inference computing.

AI-operated Ryzen CPUs also carry the AI ​​PC revolution and consolidate the variety of income at AMD. With investments in the AI ​​infrastructure, Core cloud partnerships and a mature software ecosystem, the long-term upward trend is set to AMD, even if there are short-term uncertainties. The growth of the MI350 start, ROCM progress and the growth of the AI ​​chip demand will be the drivers that shape the long-term trajectory on AMD.

On the margin side, the 54% SSNON GAAP margin at AMD is a significant expansion compared to the 30% plus edges of the early 2010s, which indicates an improved price-performance and a more valuable mix of data center. Finally, with the free cash flow of 2.4 billion US dollars, the company enabled the aggressive F&E editions and the back runs. However, the return purchases of 1 billion US dollars at AMD are significantly short to the 15 -billion dollar buy -up program at NVIDIA, which indicates a more conservative approach to allocation of capital allocation.

Evaluation analysis: A detailed look at its position on the market and the future prospects

AMD is currently $ 110.84 with a market capitalization of $ 179.61 billion. Despite the increase of 3,463.99% in the past decade, the share remains 47.56% under its all-time high and signals a possible misalignment of your AI-controlled growth.

One of the most meaningful evaluation indicators is the ratio of forward price (P/E) of 23.92, significantly lower than its tracking k/e of 111.96. This sharp compression suggests that Wall Street, despite its accelerating AI expansion, is still underestimating the future profit potentity of AMD. The Price-to-Sales ratio of 8.65 (p/s) of 8.65 also remains behind Nvidia’s first-class multiple, which reflects a chance for a new evaluation market as AI turnover scales.

From Cashflow’s point of view, AMD shows an improvement in efficiency. The company achieved Free Cashflow (FCF) in the amount of 2.4 billion US dollars in 2024 and marked an increase of 35%. However, the EV/FCF ratio of 73.47 indicates that investors are not yet completely inexpensive to expand the AI-led margin expansion, which is delivered with the rollout and data center acceleration of MI350.

Finally, the GF value estimate of $ 129.61 implies that AMD is currently undervalued ~ 17%. This model takes into account the growth of profit, profitability and industry trends, which increases the idea that AI back winch and the expansion of hyperscal partnerships are not yet fully to the AMD share price.

Get away

AMD’s AI-controlled growth accelerates, but the market does not completely have its long-term potential in terms of price. Since Meta Mi300x for the inference, the expansion of the ROCM adoption and the MI350 start are inserted forward, AMD quickly closes the gap with Nvidia. Despite short-term concerns regarding the cyclical headwind, the sales of AI accelerator of $ 5 billion is scaled up to ten billion, which increases its position as a long-term AI power package.