AMD shares fall 15% after-hours.

AMD shares fall 15% after-hours.

Advanced Micro Devices (AMD) experienced a notable decline in its stock price after-hours trading on April 29, 2025. As of the close of the regular trading session, AMD shares were trading at $96.39, but they dropped significantly in after-hours, closing at $82.51, marking a 15% decrease from the previous day's close.

The after-hours drop was driven by a combination of factors, including market sentiment and recent financial performance. Throughout the day, AMD shares had swung between $94.27 and $97.49, reflecting volatility in the tech and semiconductor sectors. The broader market sentiment, characterized by selling pressure, also contributed to the stock's decline.

Prior to the after-hours drop, AMD had been experiencing a downward trend, losing 6.37% over the past month. This decline lagged the broader Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% during the same period. Analysts and investors will be closely monitoring AMD's performance as the company prepares to release its earnings report on May 6, 2025. The consensus estimate projects an EPS of $0.93, indicating a 50% increase from the same quarter last year, and a revenue of $7.12 billion, reflecting a 30.11% rise.

Valuation metrics also indicate that AMD is trading at a premium compared to its industry peers. As of the latest data, AMD's Forward P/E ratio of 21.9 is significantly higher than the industry average of 12.17. Additionally, the company's PEG ratio of 0.9 is lower than the industry average of 1.54, suggesting that investors are optimistic about AMD's growth prospects.

The semiconductor sector, of which AMD is a part, has been subject to cyclical downturns and supply chain disruptions, which can impact stock prices. AMD's strong competitive position in the CPU and GPU markets, driven by its innovative products and strategic partnerships, has helped it maintain its market share despite these challenges. However, the short-term volatility in AMD's stock price is not uncommon, especially given the high valuation and exposure to cyclical market conditions.

Investors should continue to monitor AMD's earnings report and any updates regarding new product launches or market developments. The company's long-term growth prospects remain strong, supported by its leadership in CPU and GPU development and its focus on innovation and competitive pricing.

[1] https://finance.yahoo.com/news/advanced-micro-devices-amd-stock-214515975.html
[2] https://www.apnakal.com/market/amd-stock-faces-significant-decline-amid-market-pressure-whats-behind-the-drop/

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