We recently published a list of Why These 15 Data Center Stocks Are Plunging In 2025. In this article, we are going to take a look at where Advanced Micro Devices Inc (NASDAQ:AMD) stands against other data center stocks that are plunging in 2025.
Data center stocks were flying high at the start of the year, but Wall Street turned sour on them quickly. They were among the biggest losers of the recent selloff. Most of the stocks that fell in the past few weeks weren’t just data center pure plays. Investors invested in pick-and-shovel plays during the rally, and these are mostly the stocks that fell significantly as the pendulum swung the other way.
DeepSeek caused a brief crash in data center stocks. These stocks then recovered early on as hyperscalers doubled down. But after Microsoft canceled two of its data center contracts, the bear market quickly returned to the sector. Recent tariff fears and a negative GDP outlook have also weighed in on this previously-hot sector.
The following data center stocks have plunged the most year-to-date in 2025.
Methodology
For this article, I screened the worst-performing data center stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices Inc (NASDAQ:AMD)
Number of Hedge Fund Holders In Q4 2024: 96
Advanced Micro Devices Inc (NASDAQ:AMD) is a semiconductor company whose chips are widely used in data centers.
The stock is down significantly so far in 2025, primarily due to the broad-based decline in AI and semiconductor companies, though there are some internal factors as well.
For example, AMD’s AI revenue outlook for early 2025 disappointed investors despite management projecting strong double-digit growth for the full year. The slower-than-expected ramp-up in AI chip sales led to significant investor concerns.
AMD’s data center revenue grew by 69% year-over-year to $3.86 billion in Q4 2024, and it fell short of the $4.14 billion expected by analysts. It also reported a sharp decline in gaming revenue (down 59% year-over-year) and a 13% drop in embedded segment revenue during Q4.
Following disappointing earnings and guidance, several analysts reduced their price targets for AMD stock.
The consensus price target of $155.14 implies 53.65% upside.
AMD stock is down 16.41% year-to-date.
Overall, AMD ranks 15th on our list of data center stocks that are plunging in 2025. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
