Shares of Advanced Micro Devices (AMD) have experienced a notable decline over the past year, losing approximately 38% of its value. The stock has trailed the S&P 500 Index’s ($SPX) return of about 21.8%. This downturn becomes even more striking when compared to its rival Nvidia (NVDA), whose stock soared over 74% during the same period, despite recent setbacks associated with the launch of DeepSeek’s R1 model.
A key contributing factor to AMD’s lagging performance has been its limited market share in the high-growth artificial intelligence (AI) segment compared to Nvidia. AMD also faces stiff competition in the CPU market, which poses challenges to maintaining competitive pricing. Concurrently, macroeconomic headwinds and a soft performance in the gaming segment have added further strain to AMD’s financial results and stock valuation.
