Should I Buy AMD Stock in 2025? – Canadian Investor Guide

What is AMD?

How much is AMD stock?

The price of AMD stock is rising this week. As of now, AMD trades at $117.17 USD, showing a 1.90% increase over the past 24 hours and a strong 6.65% gain for the week.

A beta of 1.97 indicates higher-than-average volatility.

Investors in California should note that AMD’s performance reflects both rapid growth in AI and data centers, and the potential for significant price swings.

Our full analysis on AMD stock

Having rigorously reviewed AMD’s latest financial results and closely examined its stock performance trajectory over the past three years, our proprietary blend of fundamental indicators, technical signals, sector data, and competitive dynamics offers a comprehensive, up-to-date picture. The analysis confirms AMD’s remarkable operational execution amid industry transformation, with strengths increasingly differentiating it in the high-growth semiconductor and artificial intelligence sectors. So, why might AMD stock once again become a strategic entry point into the technology space in 2025?

Recent Performance and Market Context

The past year for AMD has been marked by dynamic movements reflecting both sector rotation and a rapid revaluation of future growth narratives. As of May 19, 2025, AMD trades at $117.17 USD, recovering over 31% in the last month alone and registering a robust weekly gain of 6.65%. While the six-month (-4.53%) and twelve-month (-29.56%) performance highlight the volatility inherent to leading semiconductor equities, this reset appears to have set the stage for renewed institutional interest, as evidenced by healthy trading volumes averaging 41.36 million shares daily.

Recent positive catalysts for AMD include:

• Strong Q1 2025 earnings that materially beat analyst expectations, driven by surging demand across data center and client segments.
• Announcements of strategic partnerships and a key acquisition (ZT Systems) supporting a scalable data center AI strategy.
• Accelerating AI adoption across industry verticals that prioritize GPU and CPU innovation, aligning directly with AMD’s refreshed pipeline.

The macro context further supports AMD's trajectory, as the semiconductor sector benefits from secular growth drivers—cloud investment cycles, AI/ML workloads, automation, and high-performance computing—all themes in which AMD is deeply invested. As the Canadian investor base further broadens its exposure to global technology leaders, AMD’s listing on NASDAQ offers an attractive cross-border liquidity option.

Technical Analysis

AMD’s technical posture is currently characterized by high momentum and bullish structure:

• Relative Strength Index (RSI 14): At 68.7, momentum is robust, approaching overbought levels yet still allowing for further upside, signaling persistent buying interest without the immediate excesses that typically precede corrections.
• MACD (12,26): Firmly positive at 5.7, consolidating a new bullish phase with the MACD line remaining above its signal, which often precedes further upward movement.
• Moving Averages: The stock price trades comfortably above its 20-, 50-, 100-, and—critically—200-day simple moving averages (SMA), indicative of a multi-timeframe bullish consensus.
• 20-day SMA: $106.00
• 50-day SMA: $97.50
• 100-day SMA: $101.60
• 200-day SMA: $115.10

Support is reinforced at $78.21, corresponding to recent cyclical lows, while $143.99 acts as a medium-term resistance referencing previous peak optimism in the cycle. The formation of bullish price patterns—most notably with the current recovery placing AMD above major SMAs—suggests a technical foundation for further medium-term appreciation. The swift 31% rebound in the past month underscores the stock’s propensity for sharp, sentiment-driven recovery moves.

Fundamental Analysis

Fundamentally, AMD has delivered a sequence of exceptional results:

• Q1 2025 revenue: $7.4B (+36% y/y), driven by both data center (+57%) and client (+68%) segments.
• Profitability Metrics: Gross margin improved to 50% (+3pp y/y), while operating income soared to $806M (+2,139%) and net income reached $709M (+476%).
• Diluted EPS: Achieved $0.44, representing a fivefold increase year-over-year.

Notably, this performance arrived ahead of consensus expectations, signaling both execution strength and tailwinds from new product releases, especially in AI and cloud server solutions.

AMD's forward P/E of 28.99 sharply contrasts its trailing P/E of 85.53, reflecting market confidence in a normalization of earnings as recent investments and R&D bear fruit. Price-to-sales (6.90) and price-to-book (3.28) ratios are well within tech sector norms for high-velocity growth entities, and analyst consensus targets ($127.19; +8.55% upside) reinforce perceptions of an attractive entry point relative to sector peers.

Core strategic strengths include:

• Diversified Portfolio: Four balanced revenue streams (data center, client, gaming, embedded) mitigate cyclical risk.
• Market Share Gains: AMD continues to take CPU share from Intel while challenging Nvidia with its Instinct GPUs.
• Product Innovation: Accelerated launches in RDNA 4 and second-gen 3D V-Cache CPUs, ensuring a technological edge.
• Leadership: Dr. Lisa Su’s guidance is widely recognized as transformative for AMD’s operational discipline and strategic vision.

Volume and Liquidity

A sustained average daily trading volume above 41 million shares speaks to both institutional interest and retail engagement, delivering optimal liquidity for price discovery and minimizing transaction costs. The public float remains supportive of dynamic but orderly trading, with institutional ownership (68.26%) anchoring the stock to disciplined, research-driven investment flows.

These characteristics reinforce the stock’s suitability for tactical and strategic positioning, ensuring that major moves (both upward and downward) reflect meaningful news, sector flows, and macro catalysts.

Catalysts and Positive Outlook

The AMD investment case is buoyed by several visible and near-term catalysts:

• ZT Systems Acquisition: Positions AMD at the forefront of the $500B data center AI accelerator opportunity by 2028, introducing vertical integration and value-added capability to new enterprise customers.
• AI and Data Center Expansion: Continued strong results in the data center segment (+57% y/y) underscore AMD’s ability to leverage secular AI trends, as hyperscalers and enterprises increase capital outlays in cloud infrastructure and generative AI training.
• Product Pipeline: Recent launches (Radeon RX 9070 XT, RX 9070, Ryzen 9 9950X3D, and 9900X3D) and AI-centric innovations build a competitive moat while diversifying end-markets.
• ESG Initiatives and Partnerships: Expanded alliances with Core42, Dell, and key European stakeholders (e.g., the French Commissariat à l’énergie atomique) highlight AMD’s proactive positioning in global AI development and environmental sustainability—a rising factor in institutional portfolio allocations.
• Regulatory and Consumption Tailwinds: While short-term export controls introduce some margin headwinds, guidance suggests continued high underlying gross margin (>50% exclusive of one-off charges), while global demand for semiconductors remains robust.

Thus, the combination of operational momentum, product cycle acceleration, and strategic M&A creates a landscape ripe for further value creation.

Investment Strategies

A range of buy-side strategies can be aligned with AMD’s technical and fundamental set-up:

• Short-term positioning:
• Entries near the $110–120 area leverage the current momentum above all key moving averages, supported by positive technical signals and the expectation of continued flow-driven rallies.
• Traders attuned to newsflow can capitalize on earnings volatility or product announcement spikes.
• Medium-term approaches:
• Holding through upcoming quarters—the critical period for data center and AI product ramp—captures the potential realization of analyst price targets ($127.19 and higher).
• The $143.99 resistance remains a natural point for profit-taking or further revaluation pending positive surprises.
• Long-term conviction:
• Investors looking several years out benefit from AMD’s clear roadmap in AI, HPC, and data centers, integrating ongoing innovation and market share advances.
• The current reset in valuation (forward P/E ~29) relative to anticipated sector growth supports the case for gradual accumulation, especially as the company emerges from short-term regulatory clouds.

For Canadian investors, AMD’s NASDAQ listing facilitates straightforward inclusion in cross-border portfolios, including RRSP and TFSA structures, aligning tax efficiency with sector exposure.

Is it the Right Time to Buy AMD?

AMD presently unites powerful themes—resilience amid volatility, outstanding execution, and direct exposure to AI and high-performance computing megatrends. Its exceptional Q1 results, formidable technical structure, and robust liquidity reflect renewed institutional conviction and underlying demand for its products. Furthermore, a forward-looking valuation recalibrated for growth, clear roadmap of innovations, and visionary management reinforce a positive outlook.

The stock thus appears to offer an excellent entry point for those seeking a dynamic, future-oriented allocation within global technology and semiconductor portfolios. As AMD capitalizes on its unique position in the AI and data center revolution, the fundamentals increasingly justify renewed investor interest and potential for meaningful upside in the quarters and years ahead.

In summary, as momentum, innovation, and execution converge, AMD’s profile in 2025 seems to represent a strategically compelling opportunity for investors aiming to capture the next wave of tech sector growth in a world increasingly shaped by AI and advanced computing.

How to buy AMD stock in Canada?

Buying AMD stock online is straightforward and secure for Canadian investors when using a regulated broker. You have two main ways to access AMD shares: spot buying, where you own the stock outright, or trading Contracts for Difference (CFDs), allowing you to speculate on price movements without owning the stock. Both approaches can be completed in just a few steps through reputable platforms, providing protection and transparency. Your choice depends on your investment style, fees, and objectives. For a detailed look at brokers and their fees, see our comparison guide further down the page.

Spot Buying

A spot (cash) purchase means you buy AMD shares to become a direct shareholder. Your shares are held in your account, and you can keep them for the long term, potentially benefiting from any future appreciation. Canadian brokers typically charge a fixed commission per trade, usually around $5–$10 CAD per online order.

Example

Suppose AMD is trading at $117.17 USD. With a $1,000 CAD investment (around $735 USD as of May 2025, after currency conversion and excluding small FX fees), you can buy approximately 6 AMD shares. Subtracting a $7 CAD commission, your money gets you close to 6 shares.

Gain Scenario: If AMD’s price rises by 10% (from $117.17 USD to $128.89 USD), your shares are then worth about $805 USD ($1,100 CAD after FX adjustment).

Result: That’s a gross gain of $100 CAD, or about +10% on your initial investment (before any currency fluctuations and taxes).

CFD Trading

CFDs (Contracts for Difference) let you trade AMD share price movements without owning the actual stock. This is popular for short-term strategies and offers the possibility to use leverage, increasing both potential gains and risk. With CFDs, fees typically include the bid/ask spread and a daily overnight financing charge if you keep positions open beyond the trading session.

Example

You open a CFD “buy” position on AMD stock using $1,000 CAD as margin, with 5x leverage. Your market exposure is now $5,000 CAD.

Gain Scenario: If AMD’s share price rises by 8%, your leveraged position earns an effective 40% gain (8% × 5).

Result: That’s a $400 CAD gain on your $1,000 margin (before accounting for spreads or overnight fees).

Final Advice

Before buying AMD or any US stock, always compare broker fees, currency conversion costs, platform reliability, and available features. Your ideal option depends on whether you prefer to own shares long term or trade on price movements with leverage. To help you make an informed choice, our comprehensive broker comparison table is available further down the page. Investing in AMD can be straightforward and rewarding—so take the time to select the method that best fits your financial goals and risk profile.

Our 7 tips for buying AMD stock

The latest news about AMD

AMD stock posts a strong 6.65% weekly gain, driven by robust investor confidence and technical breakouts. During the last seven days, AMD’s stock price climbed sharply to $117.17, outperforming the broader tech sector and signaling renewed strength for the company. The price now stands above all major short- and long-term moving averages, with a 20-day simple moving average at $106.00, 50-day at $97.50, and 200-day at $115.10—all indicating a solid bullish trend. The MACD reading remains positive, and the 31% monthly recovery underscores growing momentum, catching the attention of both institutional and retail investors in California who actively track Nasdaq-listed semiconductor companies.

Q1 2025 financial results exceeded Wall Street expectations, showing substantial growth across AMD’s core business lines. Reported on May 6, AMD announced first-quarter revenues of $7.4 billion, a substantial 36% year-over-year increase, while net income reached $709 million (up 476%) and diluted EPS rose 529% to $0.44. California-based investors and analysts have noted that the company’s data center revenues surged 57% to $3.7 billion, powered by significant interest in EPYC CPUs and Instinct GPUs. CEO Lisa Su characterized the performance as “an outstanding start to 2025,” further bolstering optimism around AMD’s long-term competitive positioning in AI and cloud infrastructure—a sector critical to the state’s technology ecosystem.

AMD finalized its acquisition of ZT Systems, enhancing its Santa Clara-based operations to target the booming AI data center market. The strategic acquisition brings advanced rack-level integration expertise, reinforcing AMD’s ability to deliver full-stack solutions to US hyperscale data center clients, many of whom have significant footprints in California. This move positions AMD squarely in the path of the anticipated $500 billion data center accelerator opportunity by 2028, with regional stakeholders expecting the deal to generate high-value technology jobs and bolster California’s status as a global semiconductor hub.

Launch of new Radeon RX 9070 XT and Ryzen 9 9950X3D products strengthens AMD’s portfolio, supporting Californian demand in gaming and advanced computing. AMD introduced its RDNA 4 architecture-based GPUs and second-generation 3D V-Cache CPUs, targeting power users, gamers, and content creators—a large customer base in California known for its dynamic tech, entertainment, and creator economies. These products further AMD’s appeal to major regional OEMs, retailers, and cloud providers, reinforcing local supply chains and supporting the state’s leadership in global digital innovation.

Analyst sentiment remains positive, with consensus “outperform” rating and average price target suggesting additional upside for AMD shares. Nearly 50 analysts, many with ties to major investment banks active in California, now rate AMD as outperform, with a mean price target of $127.19, representing 8.55% potential upside from current levels. The stock’s high institutional ownership (68.26%), significant presence in key indices, and its eligibility for US tax-advantaged accounts like IRAs and 401(k)s make AMD particularly attractive to California-based fund managers and long-term investors seeking exposure to AI and next-generation semiconductor trends.

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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.