Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates through Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; low power solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force, and sales representatives. Advanced Micro Devices, Inc. was incorporated in 1969 and is headquartered in Santa Clara, California.

Advanced Micro Devices, Inc.

The S&P 500 Index ($SPX) (SPY) on Tuesday closed up +0.27%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.43%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.33%. September E-mini S&P futures (ESU25) rose +0.28%, and September E-mini Nasdaq futures (NQU25) rose +0.36%.
Stock indexes on Tuesday settled higher after the preliminary revision to US payrolls in the year through March showed the number of jobs was fewer than previously stated, bolstering the outlook for accelerated interest rate cuts by the Fed. Stocks remain underpinned by the prospect of a more accommodative Fed, as the markets have fully priced in a 25 bp rate cut by the Fed at next week’s FOMC meeting and priced in a 10% chance for a 50 bp rate cut.
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M&A activity also supported stocks on Tuesday after Anglo American agreed to acquire Teck Resources, creating a more than $50 billion company. Also, Novartis AG is buying Tourmaline Bio for about $1.4 billion.
The preliminary benchmark payroll revisions to US payrolls in the year through March 2025 showed -911,000 fewer jobs than previously stated, a wider loss than expectations of -700,000 and the largest markdown in job growth since at least 2000, a sign of a weaker US labor market.
Market focus this week will be on any trade or tariff news. On Wednesday, Aug PPI final demand is expected to climb +3.3% y/y, unchanged from July, and Aug PPI ex-food and energy is expected to ease to +3.5% y/y from +3.7% y/y in July. On Thursday, Aug CPI is expected to climb to +2.9% y/y from +2.7% y/y in July, and Aug CPI ex-food and energy is expected to increase +3.1% y/y, unchanged from July. Also, weekly initial unemployment claims are expected to fall by -3,000 to 234,000. On Friday, the University of Michigan Sep consumer sentiment index is expected to slip -0.2 to 58.0.
The markets are now pricing in a 10% chance of a 50 bp rate cut at the upcoming FOMC meeting on Sep 16-17, versus the previous expectations of a zero chance of that 50 bp rate cut. After the fully expected -25 bp rate cut at the Sep 16-17 meeting, the markets are now discounting a 75% chance of a second -25 bp rate cut at the Oct 28-29 meeting, up from a 54% chance as of late Thursday. The markets are now pricing in an overall -72 bp rate cut in the federal funds rate by year-end to 3.66% from the current 4.38% rate.
Regarding tariffs, a federal appeals court ruled late last month that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 rose to a 1-week high and closed up +0.11%. China’s Shanghai Composite closed down -0.51%. Japan’s Nikkei Stock 225 dropped from a record high and closed down -0.42%.
Interest Rates
December 10-year T-notes (ZNZ5) on Tuesday closed down by -6.5 ticks. The 10-year T-note yield rose by +3.0 bp to 4.070%. Strength in stocks on Tuesday curbed safe-haven demand for T-notes. Also, supply pressures are weighing on T-notes as the Treasury will auction $119 billion of T-notes and T-bonds this week.
T-notes recovered some of their losses on solid demand for the Treasury’s $58 billion auction of 3-year T-notes that had a bid-to-cover ratio of 2.73, above the 10-auction average of 2.59. T-notes also have support after Tuesday’s larger-than-expected downward revision to annual US payroll growth and last Friday’s weak US unemployment report boosted the chances to 100% for a 25 bp Fed rate cut at next week’s FOMC meeting.
Concerns about Fed independence are negatively impacting T-note prices due to President Trump’s attempt to fire Fed Governor Cook and Stephen Miran’s intention to hold a Fed Governor position while remaining technically in his White House role on the Council of Economic Advisors.
European government bond yields on Tuesday moved higher. The 10-year German bund yield rose +1.7 bp to 2.659%. The 10-year UK gilt yield rose +1.8 bp to 4.623%.
French Jul manufacturing production fell -1.7% m/m, weaker than expectations of -1.2% m/m and the largest decline in 14 months.
Swaps are discounting no chance for a -25 bp rate cut by the ECB at Thursday’s policy meeting.
US Stock Movers
UnitedHealth Group (UNH) closed up more than +8% to lead gainers in the S&P 500 and Dow Jones Industrials and underpin health insurance stocks after saying it expects 78% of its Medicare Advantage members to be in highly rated 4-star or higher plans that earn bonus payments next year. Also, Centene (CNC) closed up more than +7% and Molina Healthcare (MOH) closed up more than +3%. In addition, Elevance Health (ELV) closed up more than +2% and CVS Health (CVS) closed up more than +1%
Strength in chip makers also supported gains in the broader market. Advanced Micro Devices (AMD) and Micron Technology (MU) closed up more than +2%. Also, Nvidia (NVDA), Marvell Technology (MRVL), ARM Holdings Plc (ARM), and ASML Holding NV (ASML) closed up more than +1%. In addition, KLA Corp (KLAC) closed up +0.96% and Applied Materials (AMAT) closed up +0.89%.
Tourmaline Bio (TRML) closed up more than +57% after Novartis AG agreed to buy the company for $1.4 billion or about $48 a share.
Nebius Group NV (NBIS) closed up more than +49% after announcing it will provide Microsoft access to GPU infrastructure capacity at its new data center in Vineland, New Jersey, over the next five years.
Brighthouse Financial (BHF) closed up more than +12% after the Financial Times reported that Aquarian Holdings is in late-stage talks with two Middle Eastern investors to finance a takeover of the company.
Atlassian Corp (TEAM) closed up more than +5% to lead gainers in the Nasdaq 100 after announcing it is ending its data center product over the coming three years and will move customers to its cloud platform.
CoreWeave (CRWV) closed up more than +7% after launching CoreWeave Ventures, a new initiative committed to backing founders and companies developing platforms and technologies shaping the AI ecosystem.
Humana (HUM) closed down more than -12% to lead losers in the S&P 500 after a post on LinkedIn, cited by analysts at Leerink Partners, stated that changes in the thresholds for Medicare quality ratings that pay bonuses to health plans are harder to get, and Humana receives most of its revenue from selling private Medicare Advantage plans.
Albemarle (ALB) closed down more than -11% as lithium stocks retreated on a report from Chinese state media Securities Times that said CATL’s lithium mine, which had suspended production last month, will resume production soon.
SailPoint (SAIL) closed down more than -7% after forecasting Q3 adjusted income from operations of $42.5 million-$43.5 million, weaker than the consensus of $50.4 million.
Fox Corp (FOXA) closed down more than -6% after trusts established for three of Rupert Murdoch’s children are selling 16.9 million shares of Class B stock.
Home builders and home building suppliers are falling today on long liquidation and profit taking following the sharp rally in the stocks over the past three months. Builders FirstSource (BLDR) closed down more than -5%. Also, PulteGroup (PHM), DR Horton (DHI), and Lennar (LEN) closed down more than -3%, and Toll Brothers (TOL) closed down more than -2%.
Freeport-McMoRan (FCX) closed down more than -5% after announcing that mining operations at the Central Papua, Indonesia Grasberg minerals district had been suspended to evacuate workers from an underground mine.
News Corp (NWS) closed down more than -4% after announcing it will offer 14.1 million shares of Class B common stock.
Earnings Reports(9/10/2025)
Barnes & Noble Education Inc (BNED), Chewy Inc (CHWY), Daktronics Inc (DAKT), Frequency Electronics Inc (FEIM), Oxford Industries Inc (OXM), PACS Group Inc (PACS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Higher on Hopes of Accelerated Fed Rate Cuts

Broadcom AVGO shares have risen 13% since the company reported third-quarter fiscal 2025 results on Sept. 4. The company reported non-GAAP earnings of $1.69 per share, beating the Zacks Consensus Estimate by 1.81% and jumping 28% year over year. Revenues rallied 22% year over year to $15.95 billion and beat the Zacks Consensus Estimate by 0.78%.
Strong portfolio and rich partner base are helping drive AVGO’s prospects. Broadcom is benefiting from an expanding portfolio, rich partner base, solid VMware business, strong balance sheet and impressive free cash flow.
AVGO has outperformed its broader Zacks Computer and Technology sector and peers, including Advanced Micro Devices AMD, Cisco Systems CSCO and Marvell Technology MRVL, year to date (YTD). While AMD and Cisco shares have returned 25.1% and 13% YTD, Marvell Technology shares have dropped 40.5%. The broader sector has returned 15.4%.
AVGO Stock’s Performance
Image Source: Zacks Investment Research
Solid Portfolio, Rich Partner Base to Boost AVGO’s Prospects
Broadcom is benefiting from strong demand for XPUs, which are a type of application-specific integrated circuits (ASICs) necessary to train Generative AI models. They require complex integration of compute, memory, and I/O capabilities to achieve the necessary performance at lower power consumption and cost. Alphabet and Meta Platforms are notable users of Broadcom’s ASICs.
In the third quarter of fiscal 2025, AI revenues surged 63% year over year to $5.2 billion. XPUs accounted for 65% of AI revenues in the reported quarter. Consolidated backlog hit $110 billion, and the company has secured more than $10 billion of orders for AI racks based on XPU demand. AVGO’s networking portfolio is gaining from strong demand for Tomahawk 5 and 6 products, as well as the Jericho 4 Ethernet fabric router.
Broadcom’s rich partner base, including NVIDIA, Arista Networks, Alphabet, Dell Technologies, Meta Platform, and Supermicro, has been a key catalyst. These factors are expected to drive strong AI revenues that are expected to grow 66% year over year to $6.2 billion in the fourth quarter of fiscal 2025.
AVGO expects fourth-quarter fiscal 2025 Semiconductor revenues of $10.7 billion, suggesting 30% year-over-year growth. Infrastructure Software revenues are expected to grow 15% year over year to $6.7 billion.
Strong Liquidity Bodes Well for AVGO
Broadcom benefits from a strong balance sheet and its free cash-flow-generating ability. As of Aug. 3, 2025, cash and cash equivalents were $10.72 billion, and Broadcom generated $7.17 billion in cash flow from operations. Free cash flow was $7.02 billion and accounted for 44% of revenue at the end of the third quarter of fiscal 2025.
The strong balance sheet is helping AVGO lower leverage, pay consistent dividends and return cash to shareholders through buybacks. Broadcom paid $2.8 billion in cash dividends in the fourth quarter of fiscal 2025.
AVGO’s Q3 Gross Margin to Suffer From Unfavorable XPU Mix
Broadcom’s fourth-quarter fiscal 2025 guidance reflects a 70 basis point sequential decline in gross margin due to a higher mix of lower-margin XPUs. A higher mix of lower-margin XPUs in the revenue mix is expected to keep gross margin under pressure throughout fiscal 2025.
Broadcom expects non-AI semiconductor revenues to grow in the low double digits sequentially to roughly $4.6 billion in the fourth quarter of fiscal 2025. Broadband, server storage and wireless are expected to improve, while enterprise networking is expected to decline sequentially. Sluggish non-AI business remains a headwind, and Broadcom expects to see a U-shaped recovery by mid-2026 or late 2026.
The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $6.61 per share, unchanged over the past 30 days, indicating 35.73% growth over fiscal 2024’s reported figure.
Broadcom Inc. Price and Consensus
AVGO Shares Trading at a Premium
AVGO stock is trading at a premium, as suggested by the Value Score of F.
In terms of the forward 12-month price/sales, AVGO is trading at 22.01X, higher than the sector’s 6.73X, AMD’s 6.64X, Cisco’s 4.42X and Marvell Technology’s 6.37X.
Price/Sales Ratio (F12M)
Image Source: Zacks Investment Research
Conclusion
Broadcom’s expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. These are good reasons to hold the stock for long-term investors.
However, declining gross margin, along with a challenging macroeconomic condition, doesn’t justify the premium valuation.
Broadcom currently carries a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Broadcom Rises 13% Post Q3 Earnings: Buy, Sell or Hold the Stock?

In early trading on Tuesday, shares of Atlassian topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.3%. Year to date, Atlassian has lost about 26.7% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 1.5%. Ross Stores is lower by about 1.6% looking at the year to date performance.
Two other components making moves today are Old Dominion Freight Line, trading down 1.3%, and Advanced Micro Devices, trading up 1.8% on the day.
VIDEO: Nasdaq 100 Movers: ROST, TEAM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nasdaq 100 Movers: ROST, TEAM

In this video, I will cover the recent updates regarding Advanced Micro Devices (NASDAQ: AMD). Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of Sept. 5, 2025. The video was published on Sept. 8, 2025.
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Neil Rozenbaum has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

What Is Causing the Weakness in AMD Stock?

Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the Direxion Daily Semiconductors Bull 3x Shares, which added 19,850,000 units, or a 4.6% increase week over week. Among the largest underlying components of SOXL, in morning trading today Advanced Micro Devices is off about 0.5%, and Nvidia is up by about 1.4%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ASTX ETF, which added 605,000 units, for a 39.4% increase in outstanding units.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SOXL, ASTX: Big ETF Inflows

For Immediate Release
Chicago, IL – September 8, 2025– Today, Zacks Investment Ideas feature highlights Broadcom AVGO, Nvidia NVDA, AMD AMD, Meta Platforms META and Alphabet GOOGL.
Buy the Spike in Broadcom Stock After Strong Q3 Earnings?
Exceeding expectations for its fiscal third quarter on Thursday evening, Broadcom stock has surged as much as +16% in today's trading session to a new 52-week high of $356 a share.
Starting to be seen as a very credible challenger to other dominant AI chip leaders, Broadcom's Q3 report caused a slight selloff in Nvidia and AMD's stock.
Outperforming the broader indexes and these AI chip peers, Broadcom stock is now up more than +40% in 2025, and investors may be wondering if they should buy into the post-earnings spike in AVGO.
Broadcom's Strong Q3 Results
Riding high on the AI wave, Broadcom reported record Q3 sales of $15.95 billion, which increased 22% from $13.07 billion in the comparative quarter and topped estimates of $15.82 billion. This was driven by AI semiconductor revenue, which climbed 63% year over year to $5.2 billion. Notably, VMware contributed $6.8 billion, with Broadcom's acquisition of the virtualization software company continuing to pay off.
On the bottom line, Broadcom's Q3 earnings increased 36% to $1.69 per share from EPS of $1.24 a year ago and topped expectations of $1.66. Additionally, Broadcom highlighted that its Q3 adjusted EBITDA spiked 30% to $10.7 billion, with free cash flow soaring 47% to $7 billion.
Broadcom's XPU Chips
Leading Broadcom's advancement in AI has been its custom XPU chips that are designed to meet the specific needs of consumer AI companies and go beyond traditional CPUs and GPUs to handle high-performance computing (HPC) workloads with extreme efficiency.
Furthermore, Broadcom's XPU chips are application-specific integrated circuits (ASICs), tailored to the unique needs of each client's AI infrastructure. Adding fuel to the post-earnings rally in Broadcom stock, the company stated it secured $10 billion in XPU orders from a new customer, which is thought to have been ChatGPT creator OpenAI. This AI hyperscale client has extended Broadcom's reach outside of major players like Meta Platforms and Alphabet.
Broadcom's Optimistic Q4 Guidance
Raising its fourth quarter revenue guidance due to robust demand for custom AI accelerators, Broadcom now expects Q4 sales to increase 24% to $17.4 billion, coming in above the current Zacks Consensus of $16.96 billion (Current Qtr below). More intriguing, Broadcom forecasts Q4 AI revenue to grow to $6.2 billion, which would mark 11 consecutive quarters of growth.
AVGO Valuation Comparison
Following today's rally, Broadcom stock has started to trade at a noticeable premium to the broader market at 46.1X forward earnings. However, this is not a far stretch to Nvidia and AMD at 39.7X and 41.1X forward earnings, respectively. Like many high-growth tech stocks, Broadcom does trade at a very high price to forward sales valuation of 24X, which is roughly on par with Nvidia but noticeably above AMD's 8.8X.
Bottom Line
While it's certainly tempting to buy into the post-earnings rally in Broadcom stock, AVGO lands a Zacks Rank #3 (Hold). More meaningful upside after such a sharp YTD rally may largely depend on what is hopefully a positive trend of earnings estimate revisions (EPS) in the coming weeks, but it wouldn't be surprising if this were to occur, given Broadcom's bullish tone for its XPU chips.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
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Zacks Investment Ideas feature highlights: Broadcom, Nvidia, AMD, Meta Platforms and Alphabet

Exceeding expectations for its fiscal third quarter on Thursday evening, Broadcom AVGO stock has surged as much as +16% in today’s trading session to a new 52-week high of $356 a share.
Starting to be seen as a very credible challenger to other dominant AI chip leaders, Broadcom’s Q3 report caused a slight selloff in Nvidia NVDA and AMD's AMD stock.
Outperforming the broader indexes and these AI chip peers, Broadcom stock is now up more than +40% in 2025, and investors may be wondering if they should buy into the post-earnings spike in AVGO.
Image Source: Zacks Investment Research
Broadcom’s Strong Q3 Results
Riding high on the AI wave, Broadcom reported record Q3 sales of $15.95 billion, which increased 22% from $13.07 billion in the comparative quarter and topped estimates of $15.82 billion. This was driven by AI semiconductor revenue, which climbed 63% year over year to $5.2 billion. Notably, VMware contributed $6.8 billion, with Broadcom’s acquisition of the virtualization software company continuing to pay off.
On the bottom line, Broadcom’s Q3 earnings increased 36% to $1.69 per share from EPS of $1.24 a year ago and topped expectations of $1.66. Additionally, Broadcom highlighted that its Q3 adjusted EBITDA spiked 30% to $10.7 billion, with free cash flow soaring 47% to $7 billion.
Image Source: Zacks Investment Research
Broadcom’s XPU Chips
Leading Broadcom’s advancement in AI has been its custom XPU chips that are designed to meet the specific needs of consumer AI companies and go beyond traditional CPUs and GPUs to handle high-performance computing (HPC) workloads with extreme efficiency.
Furthermore, Broadcom’s XPU chips are application-specific integrated circuits (ASICs), tailored to the unique needs of each client’s AI infrastructure. Adding fuel to the post-earnings rally in Broadcom stock, the company stated it secured $10 billion in XPU orders from a new customer, which is thought to have been ChatGPT creator OpenAI. This AI hyperscale client has extended Broadcom’s reach outside of major players like Meta Platforms META and Alphabet GOOGL.
Broadcom’s Optimistic Q4 Guidance
Raising its fourth quarter revenue guidance due to robust demand for custom AI accelerators, Broadcom now expects Q4 sales to increase 24% to $17.4 billion, coming in above the current Zacks Consensus of $16.96 billion (Current Qtr below). More intriguing, Broadcom forecasts Q4 AI revenue to grow to $6.2 billion, which would mark 11 consecutive quarters of growth.
Image Source: Zacks Investment Research
AVGO Valuation Comparison
Following today’s rally, Broadcom stock has started to trade at a noticeable premium to the broader market at 46.1X forward earnings. However, this is not a far stretch to Nvidia and AMD at 39.7X and 41.1X forward earnings, respectively. Like many high-growth tech stocks, Broadcom does trade at a very high price to forward sales valuation of 24X, which is roughly on par with Nvidia but noticeably above AMD’s 8.8X.
Image Source: Zacks Investment Research
Bottom Line
While it’s certainly tempting to buy into the post-earnings rally in Broadcom stock, AVGO lands a Zacks Rank #3 (Hold). More meaningful upside after such a sharp YTD rally may largely depend on what is hopefully a positive trend of earnings estimate revisions (EPS) in the coming weeks, but it wouldn’t be surprising if this were to occur, given Broadcom’s bullish tone for its XPU chips.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy the Spike in Broadcom Stock After its Strong Q3 Earnings?

Key Points
AMD and other growth stocks are seeing pullbacks today as investors react to weak August jobs numbers.
News that the Trump administration will introduce tariffs on chips produced outside of the country is also weighing on the stock.
AMD stock isn't a low-risk play, but the potential upside could outweigh the risk right now.
Advanced Micro Devices (NASDAQ: AMD) stock is getting hit with a significant pullback in Friday's trading. The chip company's share price was down 6% as of 1 p.m. ET, and had been off as much as 7.2% in the daily session.
AMD stock is getting hit with multiple bearish catalysts today. For starters, the latest U.S. jobs report arrived with much weaker employment growth than economists had forecasted. Total nonfarm jobs increased by just 22,000 in the month, far short of the 75,000 additions economists had expected. Even though the soft jobs numbers support a potential cut in interest rates from the Federal Reserve this month, the report is making investors nervous about the state of the U.S. economy.
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AMD's valuation is also under pressure today due to confirmation from the Trump administration that tariffs will be imposed on semiconductors manufactured outside the country. AMD relies on Taiwan Semiconductor Manufacturing for the fabrication of most of its designs, and it's likely that the company could face margin pressures if and when the new tariffs go into effect.
Is AMD stock a buy right now?
While AMD has continued to win market share away from Intel in the central processing unit (CPU) market, the most important long-term catalyst for its stock continues to be performance in graphics processing units (GPUs) for artificial intelligence (AI). Nvidia continues to be the far-and-away leader in the AI GPU category, which helps explain why it's been able to command margins that are far superior to what AMD has been able to muster.
Nvidia seems to be maintaining a significant technology advantage compared to AMD, and that may not change any time in the near future. On the other hand, AMD appears to have a solid second-place position in the category -- and that could be enough to power big gains for its stock over the long term. AMD stock isn't a low-risk bet, but it appears to offer a favorable risk-reward dynamic at current prices.
Should you invest $1,000 in Advanced Micro Devices right now?
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Keith Noonan has positions in Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel and short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AMD Is Sinking Today -- Is the Stock a Buy Right Now?

Key Points
Seaport Research said AMD's artificial intelligence (AI) business was slowing.
New threats arose of tariffs on semiconductors.
A weak jobs report showed the economy is slowing.
Shares of Advanced Micro Devices (NASDAQ: AMD) were taking a dive today in response to an analyst downgrade, calling out weakness in its artificial intelligence (AI) division.
In addition, the stock may have reacted negatively to a downbeat employment report, as well as a new threat about tariffs on semiconductors. Finally, reports came out showing that OpenAI was planning to make its own AI chips for the first time, which could threaten suppliers like AMD and Nvidia.
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As a result, the stock was down 6.3% as of 11:28 a.m. ET.
AMD gets dinged
The main reason for the sell-off today was a downgrade from Seaport Research, which lowered its rating on AMD from buy to neutral, noting that supply chain checks indicated slowing growth in its AI chip business.
Other reports seemed to add to those worries, as the August employment report showed that just 22,000 jobs were added last month, a sign of slowing economic growth.
Additionally, President Trump said again that his administration would impose tariffs on semiconductor imports for companies not moving production to the U.S. It's unclear if that policy would affect AMD, which is based in the U.S., but as a fabless chip company, contracts with foundries like TSMC for production. The uncertainty around the move may be weighing on the stock as well.
Peers such as Nvidia, the leading AI chipmaker, also fell today, though that may be in response to a Financial Times report that OpenAI will begin production of its own AI chips for the first time, limiting reliance on outside partners like Nvidia and AMD.
What it means for AMD
Seaport's report of slowing growth in the AI business is the most concerning news item, as AMD has positioned itself as the No. 2 company in AI GPUs, though it's well behind Nvidia.
AMD reported strong sales of its Instinct Mi350 AI accelerators in the second quarter. At this point, the boom still seems healthy after Anthropic's valuation doubled to $183 billion earlier this week, but investors should keep their eyes out for any other reports of AI weakness at AMD.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*
Now, it’s worth noting Stock Advisor’s total average return is 1,065% — a market-crushing outperformance compared to 186% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
Jeremy Bowman has positions in Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why AMD Stock Was Sliding Today

Advanced Micro Devices AMD shares have jumped 34% year to date (YTD), outperforming the Zacks Computer and Technology sector and its closest peers, NVIDIA NVDA and Intel INTC. The broader sector has appreciated 14% while shares of NVIDIA and Intel have returned 27.8% and 22.7%, respectively, YTD.
The outperformance can be attributed to strong demand for EPYC processors that power cloud and enterprise workloads. Emerging AI use cases and rapid adoption of agentic AI are generating demand for general-purpose compute infrastructure, benefiting EPYC demand.
Will continued demand for EPYC push AMD shares higher in the rest of 2025, and is it enough for investors to jump into the stock? Let’s find out.
AMD Stock’s YTD Performance
Image Source: Zacks Investment Research
EPYC and Instinct Adoption Bode Well for AMD’s Prospects
Adoption of EPYC by the largest cloud hyperscalers is increasing significantly. In the second quarter of 2025, more than 100 new AMD-powered cloud instances were launched, including multiple Turin instances from Google and Oracle ORCL. AMD stated that there are currently 1,200 EPYC cloud instances available globally, and this expansion is driving enterprise adoption of EPYC in cloud. AMD won customers across aerospace, streaming, financial services, retail and energy domains in the second quarter of 2025. Telecom is becoming a stronghold for AMD, with KDDI announcing plans to deploy EPYC processors to power its 5G virtualized network and Nokia selecting EPYC for its cloud platform.
HPE, Dell Technologies, Lenovo and Super Micro launched 28 new Turin platforms in the reported quarter. In enterprise, EPYC is gaining traction with an expanding clientele in technology, automotive, manufacturing, financial services and public sector domains. The launch of the EPYC 4005 series is expected to boost AMD’s footprint among small and medium businesses as well as hosted IT service customers.
Apart from EPYC, AMD’s prospects are driven by strong demand for Instinct accelerators. The launch of the Instinct MI350 series that supports deployments powered by AMD CPUs, GPUs and NICs has strengthened AMD’s system-level capabilities. MI300 and MI325 gained adoption in the reported quarter, as seven of the top 10 model builders and AI companies are currently using Instinct. Oracle is building a 27,000-plus node AI cluster combining MI355X accelerators, fifth-gen EPYC Turin CPUs and Pollara 400 SmartNICs.
AMD stated that its MI355 matches or exceeds NVIDIA’s B200 in critical training and inference workloads. MI355 delivers comparable performance to GB200 for key workloads at lower cost and complexity. AMD remains on track in the development of the next-generation MI400 series and is expected to launch in 2026.
AMD Offers Positive Q3 Guidance
AMD’s second-quarter 2025 results suffered from the U.S. export controls on MI308 sales to China, leading to an $800 million inventory write-down. Data Center AI revenues fell year over year due to the restrictions. AMD’s third-quarter 2025 guidance doesn’t include any revenues from MI308.
AMD now expects revenues to be roughly $8.7 billion (+/- $300 million), indicating 28% year-over-year revenue growth at the mid-point, driven by strong double-digit growth in Client and Gaming, and Data Center segments.
Sequentially, revenues are expected to grow approximately 13%, driven by strong double-digit growth in the Data Center segment with the ramp of AMD Instinct MI350 series GPU products. AMD expects modest growth in the Client and Gaming segments, with Client revenues increasing and flat Gaming revenues. AMD expects the Embedded segment’s revenues to return to growth in the current quarter.
The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $8.72 billion, indicating 27.9% from the figure reported in the year-ago quarter. The consensus mark for third-quarter 2025 earnings is pegged $1.18 per share, up 6% over the past 30 days, suggesting 28.3% from the figure reported in the year-ago quarter.
Advanced Micro Devices, Inc. Price and Consensus
AMD Faces Stiff Competition From NVIDIA
Despite an expanding portfolio and a rich partner base, AMD is facing stiff competition from NVIDIA.
NVIDIA is benefiting from the strong growth of AI and high-performance, accelerated computing. The company’s newer Hopper 200 and Blackwell GPU platforms are being rapidly adopted as customers work to grow their AI infrastructure. In the second quarter of fiscal 2026, the Data Center segment generated $41.1 billion in revenues, representing 87.9% of total sales. This marked a staggering 56% year-over-year increase and 5% sequential growth.
AMD Stock Overvalued
AMD stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this moment.
The stock is trading at a premium, with a forward 12-month price/sales of 7.1X compared with the industry’s 3.46X and Intel's 2.01X.
AMD Valuation
Image Source: Zacks Investment Research
Conclusion
AMD’s expanding portfolio and rich partner base are expected to improve its top-line growth.
However, its near-term prospects are dull due to macroeconomic uncertainties and stiff competition, particularly from NVIDIA in the cloud data center and AI chip markets. Stretched valuation is a concern.
AMD currently has a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
#1 Semiconductor Stock to Buy (Not NVDA)
The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	84.87 28.98
Price/Sales	6.85 2.58
P/B	3.25 2.76
P/FCF	69.00 24.31

Indicator	TTM Median
ROE	3.89 15.33
ROA	3.20 6.66
ROI	3.75 9.73
Net Worth	189.06 0.98
Quick Ratio	1.97 1.53
Current Ratio	2.80 1.84

Indicator	TTM Median
Net Profit Margin	8.03 9.71
Operating Margin	9.62 11.07
Gross Margin	50.09 50.00
Return on tangible equity	16.75 27.59

Indicator	TTM Median
EPS	0.88 0.24
EPS Forecast	0.88 0.19
Revenue	7.44B 73.00M
Gross Profit	3.74B —
EBITDA	1.55B —

Advanced Micro Devices, Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue