{"id":300043,"date":"2026-01-23T20:05:09","date_gmt":"2026-01-23T20:05:09","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/300043\/"},"modified":"2026-01-23T20:05:09","modified_gmt":"2026-01-23T20:05:09","slug":"why-advanced-micro-devices-could-be-this-years-best-value-play","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/300043\/","title":{"rendered":"Why Advanced Micro Devices Could Be This Year&#8217;s Best Value Play"},"content":{"rendered":"\n<ul class=\"yf-h8k6hx\">\n<li class=\"yf-h8k6hx\">\n<p class=\"yf-vbsvxt\">AMD trades at a growth-dependent valuation, but momentum in artificial intelligence (AI) appears to be accelerating.<\/p>\n<\/li>\n<li class=\"yf-h8k6hx\">\n<p class=\"yf-vbsvxt\">The stock could prove to be very cheap at today&#8217;s prices if demand for the company&#8217;s AI processors continues to accelerate.<\/p>\n<\/li>\n<li class=\"yf-h8k6hx\">\n<p class=\"yf-vbsvxt\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=112dcc77-6f00-4a26-9153-3589262927b8&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than Advanced Micro Devices \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than Advanced Micro Devices \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-vbsvxt\"><strong>Advanced Micro Devices<\/strong> (NASDAQ: AMD) stock has already risen by more than 105% over the last year of trading. With the company&#8217;s market capitalization sitting at $407 billion, the semiconductor specialist is valued at approximately 11.8 times this year&#8217;s expected sales and 36 times expected earnings.<\/p>\n<p class=\"yf-vbsvxt\">With those growth-dependent valuation levels, AMD may not look like much of a &#8220;<a href=\"https:\/\/www.fool.com\/investing\/stock-market\/types-of-stocks\/value-stocks\/value-investing-guide\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=937baf63-3e27-41eb-b6b6-6200216e0e37\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:value;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">value<\/a>&#8221; play by conventional metrics. On the other hand, the passage of time could wind up showing that the stock was actually in deep-value territory at current prices.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"AI on a chip.\" loading=\"eager\" height=\"640\" width=\"960\" class=\"yf-lglytj loader\"\/> Image source: Getty Images.      <\/p>\n<p class=\"yf-vbsvxt\">AMD will likely continue to take market share away from <strong>Intel<\/strong> in the PC and server central processing unit (CPU) market. More importantly, the company looks poised to score some significant wins in the artificial intelligence (<a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/ai-stocks\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=937baf63-3e27-41eb-b6b6-6200216e0e37\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:AI;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">AI<\/a>) graphics processing unit (GPU) space.<\/p>\n<p class=\"yf-vbsvxt\">While ultra-high-end GPUs remain the most important tools for training new models and pushing AI forward, hardware that&#8217;s less than bleeding-edge can still run AI models and be far more efficient in terms of cost. These alternatives won&#8217;t command the same high margins as top-of-the-line processors, but an increased sales mix for AI chips should still have a significant beneficial impact on AMD&#8217;s margins.<\/p>\n<p class=\"yf-vbsvxt\">AMD stock probably won&#8217;t surpass or catch up to <strong>Nvidia<\/strong> when it comes to ultra-high-end GPU performance this year, but it doesn&#8217;t need to accomplish those feats in order to post big wins in the AI space. OpenAI is one of the biggest users of Nvidia&#8217;s processors, but it announced last year that it had signed a major new partnership with AMD.<\/p>\n<p class=\"yf-vbsvxt\">There&#8217;s a good chance that leading tech giants will continue to aim to reduce some of their reliance on Nvidia&#8217;s processors, and AMD GPUs offer quick and easy avenues for diversification. Nvidia looks poised to retain a strong lead when it comes to the training of next-gen AI models, but actually running the models is less hardware intensive &#8212; and AMD should see tailwinds connected to rising inference demand.<\/p>\n<p class=\"yf-vbsvxt\">If growth for AI revenues continues to accelerate in its upcoming quarterly reports, investors could be willing to pay higher valuation multiples to own a piece of AMD. The company&#8217;s revenue already jumped 36% year over year in 2025&#8217;s third quarter, and the business posted a gross margin of 52%.<\/p>\n<p class=\"yf-vbsvxt\">With the potential for AMD&#8217;s AI infrastructure deals to start showing up as sales and lifting margins in the near future, the market&#8217;s sales and earnings outlook for the stock could quickly be revised upwards.<\/p>\n<p class=\"yf-vbsvxt\">Before you buy stock in Advanced Micro Devices, consider this:<\/p>\n<p class=\"yf-vbsvxt\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c88f96c6-5841-4849-a530-c43d2e503410&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-dyn-headline%3Faid%3D8867%26source%3Disaeditxt0001181%26company%3DAdvanced%2520Micro%2520Devices%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D18781&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=937baf63-3e27-41eb-b6b6-6200216e0e37\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Advanced Micro Devices wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-vbsvxt\">Consider when <strong>Netflix<\/strong> made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $450,525<\/strong>!* Or when <strong>Nvidia<\/strong> made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, <strong>you\u2019d have $1,133,107<\/strong>!*<\/p>\n<p class=\"yf-vbsvxt\">Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 937% \u2014 a market-crushing outperformance compared to 195% for the S&amp;P 500.\u00a0<strong>Don&#8217;t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/strong><\/p>\n<p class=\"yf-vbsvxt\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c88f96c6-5841-4849-a530-c43d2e503410&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-dyn-headline%3Faid%3D8867%26source%3Disaeditxt0001181%26company%3DAdvanced%2520Micro%2520Devices%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D18781%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DAdvanced%2520Micro%2520Devices&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=937baf63-3e27-41eb-b6b6-6200216e0e37\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-vbsvxt\">*Stock Advisor returns as of January 23, 2026. <\/p>\n<p class=\"yf-vbsvxt\"><a href=\"https:\/\/www.fool.com\/author\/6956\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Keith Noonan;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Keith Noonan<\/a> has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-vbsvxt\"><a href=\"https:\/\/www.fool.com\/investing\/2026\/01\/23\/why-advanced-micro-devices-best-value-play\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Why Advanced Micro Devices Could Be This Year&#039;s Best Value Play;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Why Advanced Micro Devices Could Be This Year&#8217;s Best Value Play<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"AMD trades at a growth-dependent valuation, but momentum in artificial intelligence (AI) appears to be accelerating. The stock&hellip;\n","protected":false},"author":2,"featured_media":300044,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[8091,291,289,290,18,19,17,292,82],"class_list":{"0":"post-300043","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-advanced-micro-devices","9":"tag-ai","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-eire","13":"tag-ie","14":"tag-ireland","15":"tag-nvidia","16":"tag-technology"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115946214023327009","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/300043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=300043"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/300043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/300044"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=300043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=300043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=300043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}