AMD and Micron: Are They Worth the Investment Now?

NEW YORK, NY — The technology sector continues to present opportunities for investors, especially when stock prices drop. Currently, shares of Advanced Micro Devices (AMD) and Micron Technology are experiencing significant declines, attracting attention from potential investors.

As of May 23, 2025, AMD shares have fallen 47% from their previous peak, despite recovering slightly after a positive earnings report in May. The company reported its fourth consecutive quarter of growth, driven by demand for its AI chips, even as tariffs have created uncertainty. In the first quarter of 2025, AMD saw its revenue increase by 36% from the previous year, reaching $7.4 billion, with adjusted earnings up 55%.

One reason for the stock’s slight recovery is AMD’s optimistic outlook regarding its embedded chip business, expected to bounce back in the latter half of 2025. Additionally, the gaming segment has benefitted from strong demand for AMD’s new Radeon 9070 series graphics chips, which saw a 28% revenue increase compared to the previous year.

Despite these promising developments, AMD faces headwinds from chip export restrictions to China, which could lower its full-year revenue by $1.5 billion. Still, the company remains confident in its long-term growth potential and has announced a $6 billion expansion of its share repurchase program, bringing the total to $10 billion. CEO Lisa Su stated, ‘Our expanded share repurchase program reflects the Board’s confidence in AMD’s strategic direction.’

Meanwhile, Micron Technology is also receiving scrutiny as its stock has dropped 37% from recent highs, despite current strong demand for its memory and storage products. The company reported a 38% year-over-year revenue growth in the last quarter and anticipates record revenue in the upcoming fiscal third quarter, mainly due to data center demand.

Investors should consider that while AMD shows more consistent annual revenue growth, Micron’s revenue tends to fluctuate due to market cycles. However, the rising needs for memory and storage in data centers suggest potential upward revenue trends for Micron over the next decade.

Analysts estimate Micron’s revenue could reach $45 billion within two years. Its stock is currently trading at a forward P/E of less than 10, suggesting potential for significant upside.

With companies like AMD and Micron positioned to leverage growing trends in data centers, AI, and cloud computing, both stocks appear to be enticing opportunities for investors looking to buy amid current market conditions.