How to invest AMD Stock in Canada [2025]

Key Takeaways

• AMD reported Q3 2025 revenue of $9.25B (+35.6% YoY) and net profit of $1.24B (+61.2% YoY), driven by strong Data Center and Gaming performance.

• Its market cap is $401.82B, with a high PE ratio of 122.18, and no dividend payout.

• Analyst price targets average $282.16 with a high of $350, suggesting upside potential.

• No stock split since 2000, but growing AI momentum may renew investor interest.

• Investors in Canada can buy AMD shares via TFSA, RRSP, cash or margin accounts.

Advanced Micro Devices (AMD.US) is a global semiconductor powerhouse specializing in high-performance computing, graphics, and AI technologies. The company generates its primary revenue from four segments: Data Center, Client, Gaming, and Embedded, with the Data Center segment recently accounting for nearly 47% of Q3 2025 revenue. With record-breaking performances in EPYC CPUs and Instinct GPUs, strategic partnerships like its $100 billion collaboration with OpenAI, and strong free cash flow growth of over 283% YoY, AMD is well-positioned to lead in the fast-evolving AI and server infrastructure markets.

Source: Moomoo, data as of 25-11-17

Is AMD stock overvalued or undervalued?

When assessing the value of AMD (Advanced Micro Devices) stock, Canadian investors are paying close attention to both its recent financial performance and future growth potential — especially within the accelerating AI and data center sectors. The chipmaker’s strategic position as a major supplier of high-performance CPUs and AI accelerators has driven incredible momentum in both its revenue and market sentiment. However, that growth has also contributed to a rich valuation, which raises questions about whether the current AMD stock price fully reflects its intrinsic value or anticipates further upside.

While AMD has reported robust quarterly earnings and delivered record-level revenue, investors should consider whether its forward-looking price-to-earnings ratio and market cap justify the current trading levels. Comparisons within the semiconductor industry, particularly against peers with similar growth trajectories, offer useful benchmarks. At the same time, indicators of future profitability, such as its record sales in data center products and bullish analyst forecast, may suggest the market is pricing in further expansion in AMD’s AI portfolio.

To draw a clearer picture, it's important to review some of AMD’s key valuation indicators currently influencing investor confidence.

Key financial metrics for AMD

Source: moomoo, data as of 25-11-17.

AMD stock price forecast

The future trajectory of AMD stock price is a focal point for many Canadian investors seeking exposure to the semiconductor and AI sector. According to consensus analysis, AMD’s price forecast suggests continued optimism: the average analyst target stands at $282.16 USD, with the highest estimate reaching $350 USD. This implies notable potential upside from its latest close, although opinions remain mixed — some analysts reiterate ‘Hold’ ratings amid volatility concerns, particularly regarding U.S. export controls and competitive risks.

Looking ahead, investor sentiment around AMD price performance ties closely to its execution in the data center space, strategic alliances (such as the OpenAI partnership), and the rollout of next-gen AI GPUs. Moomoo continues to be a valuable platform for Canadians monitoring real-time price movements, analyst ratings, and technical indicators to support informed buying decisions.

Advanced Micro Devices (AMD) earnings 2025Q3 analysis

Source: AMD 10-Q Filings, data as of 2025-11-05

Advanced Micro Devices (AMD) delivered strong third-quarter results in 2025, with robust growth across key financial metrics. For the quarter ended September 2025, AMD reported revenue of $9.25 billion, a 35.6% increase from the prior year, significantly beating consensus estimates. This surge was powered mainly by the Client and Gaming segments, which climbed 73% year-over-year, and continued demand in the Data Center division, which reached $4.3 billion in quarterly revenue. Operating profit came in at $1.27 billion, a major turnaround from the previous quarter’s loss, largely due to normalization of inventory adjustments related to export restrictions on its MI308 AI GPUs. This recovery is reflected in the AMD earnings call, where management emphasized both improved product mix and strong uptake of EPYC and Instinct series chips.

AMD’s net profit jumped 61.2% year-over-year to $1.24 billion, confirming improved efficiency and scale as revenues expand. Notably, AMD’s EPS reached $0.75 in Q3 2025, up from $0.47 a year earlier. On the latest AMD earnings date, November 5, 2025, the company highlighted bright prospects for Q4, fueled by partnerships with OpenAI and large hyperscalers planning to deploy advanced MI450 GPUs in 2026. These initiatives were discussed in depth during the AMD earnings call, which also revealed upcoming Q4 revenue guidance of approximately $9.6 billion, about 25% higher than Q4 2024. Just like tuning an engine for the perfect balance between power and efficiency, AMD’s ability to optimize between R&D, product releases, and market risk clearly set the stage for continued performance.

Advanced Micro Devices (AMD) stock split analysis

Understanding the AMD stock split history is essential for investors tracking changes in share structure and affordability. Advanced Micro Devices has executed multiple stock splits since its initial listing, with the most recent split being a 2-for-1 stock split on August 22, 2000. Stock splits are corporate actions that increase the number of shares while reducing the share price, making stocks like Advanced Micro Devices stock more accessible for retail investors. Though AMD has not had a stock split in over two decades, its strong recent performance, expanding business segments in AI and data centers, and favorable valuation metrics might prompt renewed interest in a potential future AMD stock split.

Source: trendlyne.com and investing.com, data as of 25-11-17

Advanced Micro Devices dividends analysis

When evaluating investment opportunities in the technology sector, especially within high-growth segments like semiconductors and AI infrastructure, dividend payouts often indicate stability and capital-return strategies. However, not all leading tech companies follow a dividend-distribution model, particularly those reinvesting heavily into R&D, acquisitions, and market expansion. Advanced Micro Devices (AMD), a leading innovator in data center chips, AI GPUs, and integrated computing platforms, follows this reinvestment-forward philosophy.

As of November 2025, AMD does not offer a dividend program. Despite its strong earnings performance—highlighted by consecutive record-breaking revenues and expanding gross margins—the company has chosen to allocate its growing free cash flow toward strategic moves like acquiring ZT Systems and pursuing large-scale AI partnerships, including with OpenAI and Oracle Cloud. Such reinvestments reflect AMD’s focus on long-term growth and aggressive competitiveness in an evolving global landscape.

The absence of an AMD dividend doesn’t diminish its attractiveness for Canadian investors seeking tech exposure. On the contrary, AMD’s long-term capital gains potential and stock buyback programs (with $9.4 billion remaining from a $14 billion plan) offer alternative value-creation avenues. Therefore, while passive income seekers may look elsewhere, growth-oriented investors will find AMD’s capital allocation strategy aligned with innovation-driven returns.

Can I Invest Advanced Micro Devices (AMD) stock with a TFSA or RRSP?

Canadian investors can absolutely buy Advanced Micro Devices (AMD) stock through registered accounts like a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP), providing a tax-advantaged way to grow U.S. investments. While you can buy U.S. stocks in a TFSA, it’s important to note that dividends from U.S. companies like AMD are subject to a 15% withholding tax under the U.S.-Canada tax treaty, which cannot be recovered within a TFSA. However, buying U.S. stocks with an RRSP offers a key advantage: dividend income from U.S. securities is exempt from withholding tax, making it a more tax-efficient choice for long-term AMD stock holders in retirement-focused portfolios.

How to invest AMD stock in Canada?

If you're a Canadian resident with a keen interest in the AI or semiconductor industry, investing in Advanced Micro Devices (AMD) stock can be a strategic move. With AMD's leadership in data center CPUs, Ryzen processors, and its growing share in AI-powered GPUs, it's attractive for long-term tech-focused investors. Here's a step-by-step guide tailored for busy working professionals in Canada.

Step 1: Pick a stock trading platform

To invest in AMD stock from Canada, you'll first need to select a reliable trading platform that allows access to U.S. markets. Look for platforms that support cross-border trading with low foreign exchange fees. Key factors to consider include:

• User experience: Choose a platform with an intuitive app or web interface for easy navigation during short breaks or after work hours.

• Fees: Compare commission structures, FX conversion fees, and account maintenance charges.

• Market access: Ensure the platform permits direct investment in U.S.-listed equities like AMD (NASDAQ: AMD).

• Research tools: Ensure the platform provides tools to study AMD's fundamentals, charts, and analyst reports.

Step 2: Choose the right account type and open an account

Canadian investors can use several types of accounts to invest in U.S. stocks like AMD. Each has different tax implications and benefits:

• TFSA (Tax-Free Savings Account): Your gains and dividends from U.S. stocks are tax-free in Canada, but subject to a 15% U.S. withholding tax on dividends.

• RRSP & SRRSP (Registered Retirement Savings Plan): Ideal for U.S. stock investing, as dividends are exempt from U.S. withholding tax under the tax treaty.

• Margin Account: Allows you to borrow funds to invest, which carries higher risk but is suitable for active traders familiar with leverage.

• Cash Account: A basic account where you trade using only the funds you deposit. It's the safest for beginners.

To open an account, be ready to provide your government-issued ID, proof of address, Social Insurance Number (SIN), and information about your employment and income level—required under Canadian KYC regulations.

Step 3: Fund your account

You can typically fund your trading account via Interac e-Transfer, bank transfers, or linking your Canadian bank account. Some brokers may accept wire transfers or offer currency conversion services to convert CAD to USD for trading AMD stock.

Step 4: Research AMD's fundamentals

Before you invest in AMD stock, take time to study the company’s core business units such as Data Center, Client, Gaming, and Embedded, as well as current financials. AMD reported a Q3 2025 revenue of $9.2 billion, driven by 73% growth in Client and Gaming and 22% growth in Data Center chips. Review analyst ratings, earnings trends, the company’s AI partnerships (e.g., with OpenAI), and its exposure to geopolitical risks like export controls to China.

Step 5: Set a budget for your AMD stock purchase

Cap your investment based on your available funds and risk tolerance. Here are some budgeting tips:

• Allocate wisely: Diversify your portfolio using only a portion of your investment capital for AMD.

• Secure an emergency fund: Ensure you have at least 3 to 6 months of living expenses saved separately before market investing.

• Consider fractional shares: If you can't afford a full AMD share (recently trading around USD $249), look for a platform that offers fractional shares.

Step 6: Place your AMD order

Once funded and researched, log in to your brokerage account to place an order. You can choose between a market order (buys immediately at the current market price) or a limit order (only executes at or below your chosen price). For instance, if AMD stock fluctuates between USD $235 and $253, you might set a limit order to get in near the lower end.

Step 7: Monitor and manage your investment

After purchasing AMD stock, monitor your investment periodically. Follow AMD’s quarterly earnings reports, track developments in key segments like AI and Data Center, and keep an eye on macro issues like trade regulations. Adjust your holdings if your financial goals or risk appetite change. For convenience, set up mobile alerts or digest emails through your brokerage platform to stay informed without disrupting your work-life balance.

Alternative ways to invest in Advanced Micro Devices (AMD)?

In addition to purchasing individual shares of AMD, Canadian investors have various other methods to gain exposure to the company’s performance. These alternatives can offer diversification, flexibility, and in some cases, risk management tools.

Advanced Micro Devices (AMD) ETFs

Exchange-traded funds (ETFs) provide a convenient way to invest in a basket of stocks, which can reduce the volatility associated with holding a single company like AMD. ETFs are traded on public exchanges and can be bought and sold like regular stocks, making them accessible for investors using Canadian brokerage accounts.

• iShares Semiconductor ETF (SOXX): Includes key players in the semiconductor industry, with AMD among its top holdings. Tracks the performance of the ICE Semiconductor Index.

• VanEck Semiconductor ETF (SMH): Offers exposure to global semiconductor firms including AMD. Weighted by market capitalization, it reflects changes in performance of large semiconductor technology companies.

• SPDR S&P Semiconductor ETF (XSD): This ETF uses an equal-weight strategy across semiconductor stocks, providing balanced exposure to AMD alongside smaller peers in the sector.

• BMO Global Tech ETF (ZQQ.TO): A Canadian-listed ETF that includes U.S. tech giants such as AMD, offering CAD-denominated exposure for local investors.

Advanced Micro Devices (AMD) Options

For more advanced strategies, options trading on AMD allows Canadian investors to speculate on its price movements or hedge existing positions. Options contracts can be used to generate income, manage downside risk, or take leveraged positions with reduced capital compared to stocks. However, due to their complexity, they are generally suited for experienced investors who understand options pricing and volatility dynamics.

Stocks similar to Advanced Micro Devices (AMD)

Canadian investors looking to gain exposure to companies with comparable business models or sector dynamics may consider stocks similar to AMD. These firms generally operate in high-performance computing, semiconductors, and AI-driven hardware development.

• NVIDIA Corporation (NVDA): A leading GPU and AI accelerator manufacturer often seen as AMD’s primary competitor in graphics processing and data center markets.

• Intel Corporation (INTC): A long-established semiconductor company known for its CPUs and growing investment in foundry and AI technologies.

• Micron Technology Inc. (MU): Specializes in memory and storage solutions, making it an adjacent play to AMD’s computing focus.

• Applied Materials Inc. (AMAT): Supplies equipment and materials used in semiconductor manufacturing, providing indirect exposure to the chipmaking industry.

Is it a good time to invest AMD stock?

As of November 14, 2025, Advanced Micro Devices Inc. (NASDAQ: AMD) is trading at USD 246.81, having experienced a 36.4% gain over the past three months. Canadian investors considering exposure to the semiconductor sector should note AMD's strong recent performance, backed by robust financial results and sector momentum.

AMD reported Q3 2025 revenue of USD 9.2 billion, up 36% year-over-year, driven by 22% growth in its Data Center segment and 73% growth in Client and Gaming. EPS reached USD 0.75, beating consensus estimates by over 9%. However, forward-looking guidance of USD 9.6 billion revenue for Q4, while still representing 25% annual growth, came in slightly below aggressive market expectations, prompting some volatility.

Valuation-wise, AMD’s forward P/E ratio stands at 44.62, significantly below its trailing P/E of 122.18, reflecting investor expectations of future earnings acceleration. Technical indicators like RSI (14-day) at mid-50s suggest balanced momentum. Yet, recent high short interest levels and increased institutional unloading signal cautious sentiment in the near term.

For Canadian investors, currency fluctuations and cross-border trading costs should also be considered when accessing U.S.-listed equities like AMD. Current macroeconomic risks such as U.S.-China export controls could add uncertainty for AMD’s long-term AI chip shipments.

Source: moomoo, data as of 25-11-14