AMD stock price analysis after the $245 billion wipeout

Group 1: Stock Performance - AMD stock price has dropped significantly, resulting in a market cap decline from $379 billion in 2024 to $134 billion today, a total loss of $245 billion [1] - The stock has retreated to its lowest level since May 2023, indicating a prolonged downtrend [1] Group 2: Market and Trade Dynamics - The decline in AMD's share price is attributed to escalating trade tensions between the United States and China, including a pause in Boeing deliveries ordered by Beijing [2] - The Trump administration's request for chip companies to limit sales of less advanced products to China has further impacted AMD [2] Group 3: Business Impact and Revenue - NVIDIA has projected a $5.5 billion impact on its business due to trade curbs, and AMD has also indicated that these restrictions will significantly affect its operations this year [3] - Concerns about demand from data centers are emerging, with large companies like Microsoft pausing operations, which may extend to others like Amazon and Google [4] Group 4: Segment Performance - AMD's data center business is a key growth driver, with revenue increasing by 69% to $3.8 billion in the fourth quarter, while operating income reached $1.157 billion [6] - The client segment, which includes Ryzen chips, saw a revenue increase of 58% to $2.3 billion, but revenue from gaming and embedded businesses fell by 59% and 13%, respectively [7] Group 5: Valuation Metrics - AMD is currently considered undervalued, with a forward P/E ratio of 34.5, significantly lower than its five-year average of 94, and a non-GAAP PE ratio of 19, below its historical level of 50 [8] Group 6: Technical Analysis - The AMD share price has fallen below critical support levels, including $133 and $93.56, with indicators suggesting a potential continued decline [12][13]