Should I buy AMD stock in 2025?

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At HelloSafe, our specialist has been tracking the AMD share price for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by AMD.

What is AMD?

The price of AMD stock

The price of AMD stock is rising this week. It is currently trading at $138.52, up $2.41 in the last 24 hours, with a strong weekly gain of 20.84%. AMD’s market capitalization now stands at $224.6 billion, while average trading volume over the past three months is 47.9 million shares. The stock’s P/E ratio is 101.11, it does not pay a dividend, and its beta of 1.99 suggests high volatility. Investors should note that while AMD shows strong momentum, price swings may be significant.

Our full analysis of AMD stock

Having thoroughly reviewed AMD’s most recent quarterly results and analysed the evolution of its stock price trends over the past three years, we have synthesised a comprehensive view by integrating financial metrics, technical signals, sector market data, and competitor performance through our proprietary quantitative models. Our multi-source approach ensures that our perspective goes beyond standard earnings headlines, homing in on the authentic drivers of value for investors. So, why might AMD stock once again become a strategic entry point into the technology and AI hardware sector in 2025?

Recent performance and market context

AMD has rebounded impressively over the past quarter, with the stock price up 20.84% this past week alone, recently closing at $138.52. This vigorous move follows a period of consolidation caused by sector volatility and profit-taking but now signals renewed buyer appetite. The company’s Q1 2025 financial results came in substantially above analyst expectations, powered by 36% year-on-year revenue growth and a dramatic rebound in net profit, revealing resilience and adaptability in a rapidly evolving market. In parallel, sustained global demand for advanced semiconductors—driven by AI, cloud computing, and edge devices—underpins ongoing sector optimism. The inclusion of AMD in major technology indices and intensified interest from both institutional and retail investors have also contributed to the stock’s recent outperformance. Macroeconomic support from easing monetary policy and growing capital expenditure across tech-driven industries further create a supportive context in which AMD’s growth can accelerate.

Technical analysis

From a technical standpoint, AMD currently features a compelling structure for bullish traders and investors. The relative strength index (RSI) stands at 63.55—still within a neutral-to-bullish range, leaving room for further upward moves before entering overbought zones. Although the MACD recently flashed a near-term sell signal, this has often historically presented an ideal opportunity for medium-term accumulation in the context of the prevailing trend. The stock trades well above its medium- and long-term moving averages (20-, 50-, 100-, and 200-day), confirming an established upward momentum. Notably, the current support at $135.90 has held firm through profit-taking, while immediate resistance at $140.46 is being actively tested—a breach may unleash the next upside leg towards $147.75 and beyond. This combination of strong supports, a high percentage of bullish moving average signals, and improving volume all suggest that AMD could be transitioning into a renewed bullish phase, especially as technical reversals out of consolidations typically precede sustained rallies in tech leaders.

Fundamental analysis

AMD’s wage of growth in Q1 2025—a 36% jump in sales and a sizeable increase in adjusted EBITDA—demonstrates the company’s growing market share and competitive firepower, particularly in data centric and AI-enabled segments. Despite premium headline valuation ratios (P/E of 101.11), these multiples are underpinned by accelerating cash flows, high single-digit net margins, and a forward-looking product cycle that aims directly at the heart of the AI revolution. Strategic moves, such as the $4.9 billion acquisition of ZT Systems, have solidified AMD’s presence in data centre hardware and strengthened commercial ties with global hyperscalers. The forward P/E and PEG (notably compressed by future earning projections) suggest valuation should normalise as near-term earnings keep outpacing expectations. The firm’s innovation-led culture, best illustrated by its Zen architecture CPUs and Instinct GPUs for professional AI workloads, places AMD among the undisputed technological leaders globally—while a robust, cash-positive balance sheet and prudent financial management further solidify its base for organic and inorganic expansion over the coming years.

Volume and liquidity

The daily average trading volume for AMD sits at 47.9 million shares, reflecting exceptional liquidity and consistent demand from both institutional asset managers and active retail participants. High liquidity means market orders execute efficiently, with tight spreads and minimal slippage—vital for both active traders and longer-term portfolio builders. Coupled with a healthy market float, which facilitates dynamic revaluations as fresh capital rotates into the stock, this strong volume picture reflects confidence and interest from the world’s most sophisticated investors. A large, well-distributed share base also minimises the risk of price manipulation, making AMD an attractive vehicle for steady capital inflow.

Catalysts and positive outlook

Looking ahead, multiple catalysts continue to refresh AMD’s positive narrative. The timely completion of the ZT Systems acquisition strategically fortifies its AI data centre hardware segment, opening a clear runway into hyperscale and enterprise contracts. Simultaneously, its growing partnerships with leading AI platforms such as Meta and Google amplify the addressable market for AMD’s Instinct GPUs and EPYC server processors, helping the brand capture share in the AI infrastructure gold rush. Technological advances—especially the rollout of new-generation Zen-based CPUs and highly efficient, AI-focused GPUs—keep AMD at the forefront of innovation. The company’s commitment to ESG initiatives, such as reducing power footprints in next-gen chips and securing responsible supply chains, speaks directly to rising institutional mandates. Sector-wide, the ongoing global digital transformation, public and private investments in cloud infrastructure, and expansion of edge computing applications underpin continued demand, while medium-term regulatory frameworks favour established, adaptable market leaders like AMD over smaller, less diversified competitors. In synthesis, the current “AI upcycle” arguably represents a structural tailwind for the company, carrying not just cyclical, but also secular, compounding potential over the next five years.

Investment strategies

• Short-term traders may find opportunities on technical pullbacks near major support levels, especially as periods of consolidation historically precede further breakouts on positive product or partnership announcements.
• Medium-term investors can position ahead of upcoming earnings releases or sector-specific catalysts, such as new product launches, leveraging both the momentum in trading volume and the stock’s demonstrated propensity to outperform analyst expectations.
• Long-term holders may wish to focus on AMD’s expanding cash flows, sector-leading R&D pipeline, and relentless push into high-growth markets such as AI, cloud, and HPC (high-performance computing). The company’s diversified strategy—across gaming, datacentres, and emerging verticals—hedges against short-term cyclical risks and aligns perfectly with themes embraced by major institutional allocators.

Ideal positioning may involve staged entries, with partial purchases around present support followed by scaling in as key resistances are decisively breached. This strategy seeks to optimise risk/reward, while increasing exposure to positive momentum in the event of a breakout.

Is it the right time to buy AMD?

In conclusion, AMD combines strong technical set-ups, impressive recurring revenue performance, clear visibility on earnings growth, and unmatched agility in product innovation. The recent acceleration in price action, coupled with robust analyst upgrades and sector-wide tailwinds in AI and cloud, mean that the fundamentals genuinely justify renewed interest from UK-based investors. High levels of trading volume and liquidity further confirm institutional conviction and the ease of market access for all investor profiles. While one should always exercise prudent portfolio and risk management, AMD appears to be entering a new bullish phase, presenting what seems to represent an excellent opportunity to participate in the next wave of digital transformation and artificial intelligence infrastructure buildout. Now more than ever, AMD deserves close attention from those seeking long-term value in the technology sector.

How to buy AMD stock in the UK

Buying AMD stock online is both simple and secure when you use a regulated UK broker. Investors have two main options: direct cash buying (owning the shares outright) or trading Contracts for Difference (CFDs), which allows you to speculate on the price without owning the underlying shares. Both methods are accessible online and suited to different investment goals. To make an informed decision, be sure to check the detailed broker comparison provided further down the page.

Spot buying

A cash purchase means you buy AMD shares to own them directly, benefiting from any price increases or dividends. You usually pay a fixed commission per trade, often ranging from £5 to £10 with UK brokers.

Gain scenario

If the AMD share price is $138.50, you can buy around 7 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFDs let you trade AMD shares by speculating on price movements without owning them, using leverage to increase market exposure. Typical fees include a spread (the gap between buy and sell price) and overnight financing costs if you keep positions open for several days.

CFD Gain Scenario with Leverage

You open a CFD position on AMD shares with 5x leverage using a $1,000 stake.

This gives you a market exposure of $5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, always compare brokers’ fees, trading conditions, and available features—this will help you find the most suitable platform for your needs. The right choice depends on your investment objectives and whether you prefer direct ownership or more flexible, leveraged trading. For more details, see our comparison further down the page.

7 Tips for Buying AMD Stock

The latest news about AMD

AMD stock surges over 20% in a week amid robust market momentum. In the past seven days, AMD’s share price has risen by more than 20%, outperforming peers on the Nasdaq and drawing renewed attention from UK-based institutional and private investors. This rally reflects positive sentiment following strong sector dynamics and increased demand for high-performance computing and AI applications, key markets for AMD.

Acquisition of ZT Systems completed, boosting AMD's data centre presence. AMD has finalised the acquisition of ZT Systems, a move aimed at strengthening its leadership in the global data centre market, an area with strong demand in both the US and Europe, including the UK’s rapidly expanding cloud and AI infrastructure sectors. The deal positions AMD to capture new enterprise clients and enhance its footprint in critical regions.

UK investors benefit from efficient execution through high trading volumes in AMD shares. Average daily trading volume in AMD exceeds 47 million shares, providing ample liquidity for professional and retail investors in the UK to efficiently execute large and small trades. This dynamic ensures fast trade execution and minimal slippage even during times of heightened market activity.

Strong earnings momentum underpinned by sustained AI and server growth. AMD’s latest quarterly results surpassed expectations, with revenue up 36% year-on-year and net profit soaring, supported by increasing adoption of EPYC processors in data centres. This robust performance has fuelled international analyst upgrades and bolstered confidence among UK funds monitoring semiconductor sector exposure.

AMD’s active partnerships in AI and cloud drive European relevance and strategic opportunities. New strategic collaborations with major players like Meta and Google reinforce AMD’s global reach and relevance in the AI and cloud markets. These partnerships benefit the UK technology ecosystem by expanding access to cutting-edge computing solutions and strengthening the long-term case for holding AMD shares.

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.