What's Going On With AMD Stock?

Advanced Micro Devices, Inc. AMD shares are trading lower by 3.7% to $199.72 during Monday’s session, despite a lack of company-specific news. The stock is falling, potentially amid profit-taking, after hitting a new 52-week and all-time high last week, in addition to overall market weakness Monday.

Tuesday’s February CPI report is possibly the week’s most crucial economic indicator, potentially influencing the Fed’s March 20 rate decision. If the CPI data shows a significant increase in inflation, it could raise concerns about rising costs for AMD in terms of materials, labor, and other operational expenses. This could potentially lead to higher production costs for AMD’s products, impacting its profit margins and, consequently, its stock price.

Shares of several semiconductor stocks are also trading lower Monday, with the move lower potentially being driven by recent weakness in NVIDIA Corp shares. It was reported that NVIDIA has been sued by three authors for allegedly using their copyrighted works without permission to train its AI platform.

Is AMD A Good Stock To Buy?

When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.

Advanced Micro Devices has reported average annual revenue growth of 38.27% over the past 5 years. .

It's also important to pay attention to valuation when deciding whether to buy a stock. Advanced Micro Devices has a forward P/E ratio of 61.73. This means investors are paying $61.73 for each dollar of expected earnings in the future. The average forward P/E ratio of Advanced Micro Devices's peers is 32.28.

Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.