Stock Price Drop for AMD: Worth Buying Currently?

Considering the current dip in AMD's stock price, is it a good opportunity for investors to capitalize?

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2025 September 14 . 1:26 PM

2 min read

AMD Stock Dropping - Could It Be a Purchase Opportunity?

Stock Price Drop for AMD: Worth Buying Currently?

Advanced Micro Devices (AMD) faced a challenging day in the stock market, with the share price dropping as much as 7.2% in the daily session. The day's range for AMD stock was between $150.18 and $157.14, and the closing price stood at $151.06 per share following a pullback of 6.63% in Friday's trading.

The weak U.S. jobs report, which showed employment growth of 22,000, significantly less than the forecasted 75,000 additions, has caused investors to be nervous about the state of the U.S. economy. This uncertainty could potentially lead to a cut in interest rates from the Federal Reserve this month.

Despite the recent dip, AMD's long-term catalyst remains its performance in graphics processing units (GPUs) for artificial intelligence (AI). The company, currently led by Dr. Lisa Su since October 2014, is focusing on AI and high-performance computing, as highlighted in her upcoming keynote at CES 2026 where she will present AMD's vision for future AI solutions across multiple sectors.

However, AMD's path is not without challenges. The Trump administration's decision to impose tariffs on semiconductors manufactured outside the country could cause margin pressures for AMD. Additionally, Nvidia seems to maintain a significant technology advantage compared to AMD in the AI GPU category, commanding superior margins.

AMD's reliance on Taiwan Semiconductor Manufacturing for the fabrication of most of its designs is another factor to consider. On the bright side, AMD holds a solid second-place position in the AI GPU category, which could power big gains for its stock over the long term.

The company's gross margin stands at 43.20%, and its market capitalization is $245 billion. AMD has been winning market share away from Intel in the central processing unit (CPU) market, further bolstering its position in the tech industry.

Despite the risks, AMD stock isn't a low-risk bet, but it appears to offer a favorable risk-reward dynamic at current prices. Investors will be eagerly awaiting Dr. Su's keynote at CES 2026 for insights into AMD's future AI solutions and strategies to overcome competition.