Advanced Micro Devices (AMD) shares climbed close to 4% on Monday as the chipmaker’s gaming GPUs gained market share in Japan, reaching 45%, according to a report from Tom’s Hardware. AMD’s Japan Marketing Manager Yoshiaki Sato noted that the company is not accustomed to selling such a high volume of graphics cards.
AMD shares surge nearly 4% as gaming GPUs gain traction in Japan
Despite the recent gains, AMD shares have lost nearly half of their value over the past 12 months, primarily due to concerns surrounding the company’s artificial intelligence (AI) revenue and its ability to compete with Nvidia (NVDA), which has faced supply chain challenges.
The tech industry is experiencing volatility as investors express apprehension over stock valuations, with many worrying that stocks are overvalued after two consecutive years of over 25% gains. Morgan Stanley’s analysis indicates that the investor sentiment has fluctuated, starting with pessimism in late 2022, skepticism throughout 2023, and a growing optimism for 2025, largely contingent on the adoption of AI technologies.
Large-cap growth stocks in the United States saw significant performance in 2024, with the Russell Growth Index climbing 33.4%. This growth was largely attributed to major tech companies, known as the Magnificent Seven, which spurred consistent returns that outperformed value stocks by 9.2% in the fourth quarter, according to a report by LSEG.
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However, trade policy shifts have led to considerable market volatility, erasing $4 trillion in gains from previous highs. The broader market fell 2.7% on March 10, marking the worst day of the year, and the Nasdaq dropped 4%. Following its peak in February, the market has seen an 8.6% decline as of March 10, prompting hedge funds to reduce their stock exposure at the fastest rate in over two years.
AMD’s RX 9070 series gaming GPUs have experienced strong sales in Japan amid production constraints. The company aims to increase its gaming GPU market share to 70%. Although Nvidia continues to lead in the high-end gaming GPU segment, its supply constraints have allowed AMD to capture additional market share.
Despite the uptick in AMD’s stock price, the company is still down approximately 13% in 2025 and has seen a 45% decline over the past year. Currently, AMD is valued at about 22.5 times this year’s expected earnings. While some segments of AMD’s business are performing well, particularly in GPUs for AI data centers, the company’s growth in the AI sector has not met investor expectations.
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