Advanced Micro Devices (NASDAQ: AMD) stock has continued its longstanding downward trajectory in 2025. Following a lackluster quarterly report on February 4, worries abounded that AMD stock could crash below $100, which it ultimately did by the end of the month.
By March 10, Advanced Micro Devices shares entered oversold territory, and prices began recovering.
At the time of writing on March 26, AMD stock was trading at a price of $109.68, having effectively erased all of the losses seen in the past thirty days and bringing year-to-date (YTD) losses down to 9.20%.
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On March 25, investment strategist Shay Boloor shared an interesting chart in an X post — putting forward a thesis as to why now might be the right time to go long on AMD.
Per Boloor’s chart, each time that the company’s shares have pulled back to a forward price-to-earnings (PE) ratio of 20, a significant rebound ensued.
Should you go long on AMD stock?
For one, it has to be admitted that, at such a low forward PE, the stock is quite affordable, especially when compared to peers and rivals. But beyond simply being a value play, does AMD stock truly have bullish potential?
Back in early March, AMD shares entered oversold territory, prompting renowned chart expert TradingShot to outline a technical buy opportunity with an ambitious $320 price target based on long-term price action.
On a more fundamental level, Wall Street analysts also maintain quite a bullish outlook. At present, the average 12-month price forecast for AMD stock sits at $147.88, a figure that implies a pretty hefty 34.82% upside from current prices.
Here’s the downside. As evidenced by the first rebound in 2022 on Boloor’s chart, there’s no guarantee that the uptick will be significant or long-lasting. While the likelihood of a move to the upside always increases when a stock is in a long-term downward trajectory, this does not necessarily translate to a trend reversal.
There are quite a few reasons to be bullish on AMD. While it likely won’t take a significant portion of the artificial intelligence (AI) market from Nvidia, core operations remain strong, as witnessed by the unexpectedly strong demand for the company’s latest line of GPUs. With that being said, at present, it’s hard to argue for it over other tech stocks as anything other than a long-term, buy-and-hold value play.
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