15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip

9. Advanced Micro Devices, Inc. (NASDAQ:AMD) 

Advanced Micro Devices, Inc. is a semiconductor company that operates in embedded, client, data center, and gaming segments. It provides AI accelerators, GPUs as standalone devices, data processing units, embedded processors, and other products. The stock is up 4.26% in the last 5 trading days against the S&P 500’s 1.13% gains. However, this hardly matters to investors who are down 37% in a year despite other semiconductor stocks posting enormous gains due to AI spending.

The recent optimism stems from the fact that AMD continues to gain microprocessor market share over rival Intel. The increasing PC and server demand means AMD’s market share grew from 21.6% to 22.1% QoQ. According to Citi’s historical data, Intel’s 67.4% market share is now the lowest since 2002.

Citi also cut AMD’s price target from $170 to $110 after the chipmaker announced its quarterly results. KeyBanc also lowered its price target from $150 to $140. AMD is showing weakness in the data center segment and the company also hasn’t provided guidance for AI revenue, which could stay flat for the first half of 2025. This lack of growth means the market could start giving the share a lower multiple, resulting in lower stock prices as the year progresses. Despite the recent bullish rally, the outlook doesn’t inspire confidence for AMD.