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Advanced Micro Devices (AMD -1.21%) is one of the world's leading suppliers of graphics processing units (GPUs) for data centers, which are the primary chips used in artificial intelligence (AI) training and inference workloads. In fact, it has become one of the most formidable competitors to the industry leader, Nvidia.

On Aug. 4, AMD released its operating results for the 2026 second quarter, and they revealed substantial revenue and earnings growth led by its data center business. But considering its stock is up 200% during the past 12 months, is most of that growth already priced in? The answer might depend on how long an investor plans to hold the stock, and I'll explain why.

Image source: The Motley Fool.

AMD is starting to ship its most powerful chips ever AMD was on the back foot when it entered the AI data center race in 2023. Its MI300X GPU was designed to compete with Nvidia's industry-leading H100, but that company was already in the process of launching its Blackwell architecture, which extended its dominance.

AMD is closing the gap, though, and it has since captured some of Nvidia's top customers, including Oracle, Microsoft, and OpenAI. AMD's new MI450 series GPUs are widely expected to be a comparable alternative to Nvidia's new Vera Rubin chips when they start shipping during the next few months, which should significantly increase the company's market share.

In fact, when the MI450 is paired with AMD's new Helios rack, which includes specialized central processing units (CPUs) and networking components, it can be as much as 15% more powerful and 30% more cost-efficient than any of its competition.

The company is already working on its MI500 series GPUs, which are expected to reach customers in 2027. Chief Executive Officer Lisa Su said it could produce a staggering 2,000 times more performance in inference workloads compared to the original MI300X, which highlights the company's rapid progress during the past four years.

OpenAI and Meta Platforms will each deploy 6 gigawatts' worth of computing capacity using AMD's GPUs during the next few years, starting with the MI450 and Helios. Su says Anthropic and Microsoft will also be deploying MI450 GPUs in Helios racks, so AMD is amassing a very impressive customer list.

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AMD's data center revenue doubled during the second quarter AMD generated a record $11.5 billion of revenue during the second quarter, a 50% increase from the year-ago period. The company's data center business contributed more than half of that total with $6.7 billion in revenue, and it grew by a whopping 107%.

But considering Su predicts the market for AI data center chips will grow to $1.4 trillion annually by 2030, AMD has barely scratched the surface of its opportunity. She now expects the company's data center revenue to continue to more than double in 2027, which is positive news for shareholders.

There is currently a shortage of AI data center hardware because of the incredible level of demand, which gives suppliers like AMD the ability to dictate prices. This is having a profound affect on the company's bottom line, with its second-quarter adjusted (meaning not in accordance with generally accepted accounting principles) earnings soaring by 246% to $1.66 per share.

Is it too late to buy AMD stock after its recent gains? Based on AMD's adjusted trailing-12-month earnings of $5.76 per share, its stock is trading at a price-to-earnings (P/E) ratio of 83.6, which is more than double Nvidia's P/E of about 33.5. Therefore, AMD stock certainly looks expensive after its 12-month rally of 200%.

Nevertheless, Wall Street's average forecast (provided by Yahoo! Finance) suggests AMD's adjusted earnings could rise to $13.92 per share in 2027, giving its stock a forward P/E of just 34.6. That means the stock might actually look attractive at the current price to investors who intend to hold it for at least the next 18 months. And if Su is right about the market for AI data center chips growing to $1.4 trillion annually by 2030, then AMD stock might actually be cheap today.

As a result, whether AMD stock is a good buy after its recent rapid gains might depend entirely on an investor's time horizon. Those who are looking for strong returns during the next few months should probably steer clear, whereas those who are willing to stay the course for several years could do very well, as long as the AI infrastructure spending boom continues.

Key Takeaways AMD shares fell despite a Q2 earnings beat, as a sharp capex increase weighed on investor sentiment. AMD reported record data center revenues and expects strong server and AI platform growth into 2027. ETFs like SMH and SOXQ offer notable AMD exposure while spreading risk across chip stocks. Shares of Advanced Micro Devices (AMD - Free Report) dropped 7% on Aug. 5, despite the tech firm reporting better-than-expected second-quarter 2026 results the previous day. AMD’s share price slump reflects that despite comfortably beating Wall Street’s revenue and earnings estimates, the chipmaker failed to improve investor sentiment, likely due to concerns over the sharp rise in second-quarter capital expenditures. 

While the stock regained its footing in the following trading session by inching up 1.5%, it remains 5.7% below the price level it boasted before the second-quarter results. 

Against this recent pullback, one must not forget that AMD has nearly tripled over the past year, backed by the soaring demand for its artificial intelligence (AI) chips, and remains up 128% year to date.

Management expects the company’s data center segment revenues to more than double year over year in 2027, while its server revenues are projected to soar more than 80% on an annual basis in the second half of 2026.

These growth projections are expected to provide a sustained tailwind for AMD’s share price, with the recent pullback suggesting to be only a momentary one, thereby offering a golden opportunity for investors to make an entry in this chipmaker right now. 

However, considering the huge 187% year-over-year increase in its Capex, capacity constraints in advanced packaging and volatile HBM4 memory pricing, some investors might remain skeptical of investing in AMD and would instead look for a safer bet. 

For them, a more prudent strategy would be to invest in Exchange-Traded Funds (ETFs) with significant exposure to this chipmaker. This approach will allow investors to capture the potential upside of AMD’s innovation cycle as well as the gains of other tech leaders while mitigating the risks associated with individual stock ownership in a high-valuation environment.

But before diving straight into these ETFs, let us check AMD’s overall performance in the second quarter in terms of other metrics.

A Brief Analysis of AMD’s Q2 ResultsAMD’s second-quarter earnings beat the Zacks Consensus Estimate by 3.1%, while revenues topped the mark by 1.9%. 

Its data center revenues grew 107% year over year to a record $6.7 billion, driven by strong demand for EPYC processors and Instinct accelerators. In the server segment, AMD delivered its fifth consecutive quarter of record server CPU revenues with cloud and enterprise sales each growing more than 70% year over year. 

Impressively, within its enterprise segment, more than 230 fifth-gen EPYC platforms are now in market from HPE, Dell, Lenovo, Supermicro and others.  

Revenues from its data center AI business more than doubled in the second quarter, driven by strong demand for its Instinct accelerators. 

Meanwhile, its AI software stack, ROCm reached an important inflection point with the performance, capabilities, and developer experience customers need to deploy AI in production at scale. The breadth of the ecosystem is also expanding with more than 3 million models now run out of the box. 

Looking ahead, Helios, AMD’s rackscale AI platform, which is currently in production, remains on track for initial shipments later in the third quarter, with volume ramp-up expected through the fourth quarter and into 2027, driven by strong customer demand. The company aims to launch a new rack-scale AI platform every year, with each generation delivering significant performance, efficiency and TCO gains. 

With AMD now projecting the data center AI accelerator market to reach $1.4 trillion and the server CPU market to hit $220 billion by 2030 — growing at annual rates of 45% and 50%, respectively — expanding AI workloads across both categories should provide a continuous tailwind for the chipmaker.

AMD-Heavy ETFs to BuyiShares Semiconductor ETF (SOXX - Free Report)   

This fund, with net assets worth $44.99 billion, offers exposure to 30 U.S. companies that design, manufacture, and distribute semiconductors. Of these, AMD carries the third spot, holding 8.10% of the fund. NVIDIA (NVDA) holds the first spot in this fund, holding 9.01% weightage. 

SOXX has surged 76.8% year to date. This fund charges 33 basis points (bps) as fees. It traded at a volume of 7.64 million shares in the last trading session. This fund sports a Zacks ETF Rank #1 (Strong Buy). 

Invesco AI and Next Gen Software ETF (IGPT - Free Report)   

This fund, with a market value of $899 million, offers exposure to 101 companies that manufacture technologies or products that contribute to future software development through direct revenues. Of these, AMD carries the sixth spot, holding 6% of the fund. SK Hynix holds the first spot in this fund, with 9.69% weightage. 

IGPT has rallied 40.5% year to date. This fund charges 56 bps as fees.  It traded at a volume of 0.26 million shares in the last trading session.  This fund holds a Zacks ETF Rank #1.

Invesco Semiconductors ETF (PSI - Free Report)   

This fund, with a market value of $2.47 billion, offers exposure to 31 semiconductor companies. Of these, AMD carries the fifth spot, with 5.43% of the fund. Applied Materials holds the first spot in this fund, with 6.67% weightage. 

PSI has soared 83.4% year to date. This fund charges 56 bps as fees.  It traded at a volume of 0.31 million shares in the last trading session.  This fund sports a Zacks ETF Rank #1.

VanEck Semiconductor ETF (SMH - Free Report)  

This fund, with total assets worth $70.42 billion, offers exposure to 26 companies involved in semiconductor production and equipment. Of these, AMD carries the fourth spot, with 5.38% of the fund. NVDA holds the first spot in this fund, with 22.11% weightage. 

SMH has soared 58.7% year to date. This fund charges 35 bps as fees.  It traded at a volume of 6.23 million shares in the last trading session. 

This fund sports a Zacks ETF Rank #1.

Invesco PHLX Semiconductor ETF (SOXQ - Free Report)   

This fund, with a market value worth $2.82 billion, provides exposure to the 31 largest U.S.-listed securities of companies engaged in the semiconductor business. Of these, AMD carries the 10th spot, holding 4.03% of the fund. NVDA holds the first spot in this fund, with 13.43% weightage. 

SOXQ has surged 70% year to date. This fund charges 19 bps as fees. It traded at a volume of 0.98 million shares in the last trading session. This fund sports a Zacks ETF Rank #1.     

HomeEarnings AnalysisTech 

SummaryAdvanced Micro Devices, Inc.'s Q2 earnings outperformance and raised long-term targets, despite an underwhelming Q3 outlook against lofty market expectations, reinforce accelerating data center momentum.Agentic workloads have emerged as the fastest-growing server CPU use case, expanding EPYC's long-term opportunity.EPYC Venice, Instinct MI450, and Helios are competitively positioned to support further upside as next-generation data center deployments ramp.Coupled with AMD's proprietary chiplet architecture and differentiated node strategy, the company maintains a competitive supply advantage amid industrywide constraints, supporting incremental upside that remains underappreciated at current levels. Robert Way/iStock Editorial via Getty Images

Advanced Micro Devices, Inc. (AMD) has emerged as a leading compute beneficiary of the agentic shift this year, supported by consistent execution across its data center roadmap. In addition to the continued ramp of

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

At $518.58, Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) looks compelling, and its punishing beta of 2.49 works in shareholders’ favor at this stage of the AI capex cycle. The stock has gained 142.15% year to date, and Q2 earnings validated the reason why.

AMD sells the two chips hyperscalers cannot get enough of: Instinct GPUs for AI training and inference, and EPYC server CPUs that run the cluster headnodes around NVIDIA (NASDAQ:NVDA) and its own accelerators. Data Center revenue hit $6.72 billion in Q2, up 107% year over year, and now represents 58% of total company revenue. That is the mix change bulls have waited three years for.

Why The Setup Favors The Bulls The bull case is straightforward capex math. Hyperscaler AI spending is accelerating past $300 billion, cloud giants are actively diversifying away from sole-source NVIDIA reliance, and AMD is playing from a low single-digit share base. Even minor budget reallocations translate into outsized top-line growth. Q3 guidance calls for roughly $13 billion in revenue, about 41% YoY growth, with non-GAAP gross margin near 56%.

Operating leverage is showing up in the numbers. Q2 operating income grew 1,585% YoY to $1.99 billion, and non-GAAP operating margin expanded to 27% from 12%. Anchor partnerships back the runway: 2 gigawatts with Anthropic on MI450, 6 gigawatts with Meta on Instinct, and 6 gigawatts with OpenAI. As Lisa Su put it, “Data Center revenue more than doubled year-over-year.”

Why The Bear Case Still Has Teeth The valuation is uncomfortable. AMD trades at a trailing P/E near 162 and a forward P/E around 66x, with a price-to-sales of 21. Any deceleration in AI capex would compress that multiple violently, and beta cuts both ways.

Competitive risk is real. Elon Musk announced SpaceX will stop buying AMD chips in favor of NVIDIA, and AMD shares dropped 8% on the news. The Gaming segment fell 31% YoY, U.S. export controls on MI308 remain a China overhang, and insiders have logged 90 recent transactions with net selling.

Why Patience Is Tempting A Hold case rests on entry timing. Shares have jumped 14.07% in the past week and sit near $584.73 52-week highs. An AI model target of $475.08 implies 8.39% downside, and composite sentiment has fallen 14.84 points over 30 days. Waiting for a pullback into the $450s would improve risk/reward without abandoning the thesis.

The Numbers Behind The Call AMD trades at $518.58 against an analyst consensus target of $579.11, implying roughly 12% upside. Coverage skews decisively bullish: 5 Strong Buy, 36 Buy, 10 Hold, and 0 Sell ratings.

AMD is up 142.15% year to date, while the S&P 500 has returned 13.11%. Over one year, AMD is up 193.35% versus 22.21% for the S&P. That is beta doing exactly what a leveraged AI position should do.

The Verdict At This Price At $518.58, the setup favors accumulators.

The path to appreciation runs through the Q3 earnings report and the MI450 ramp. Guidance of $13 billion in Q3 revenue looks conservative given Data Center’s 16.3% sequential growth and the Anthropic, Meta, and OpenAI ramps ahead. Another beat and raise expands the forward multiple even if the trailing P/E stays optically rich.

Risk/reward at this entry is asymmetric because AMD’s operating leverage is only starting to show. Non-GAAP operating margin already jumped from 12% to 27%, and EPYC share gains carry higher incremental margins than Instinct. A beta of 2.49 means every incremental capex dollar routed to AMD hits harder than it does for NVIDIA.

What invalidates the thesis: a broad hyperscaler capex pause, another marquee customer defection following the SpaceX signal, or Q3 guidance that fails to accelerate. Watch Data Center revenue, MI450 shipment cadence, and hyperscaler capex commentary from Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Amazon (NASDAQ:AMZN).

When the compute bottleneck is this severe and the number two vendor is finally shipping competitive silicon at scale, the high-beta name carries asymmetric upside.

Contact [email protected] for any questions or corrections.

HomeEarnings AnalysisTech 

SummaryAdvanced Micro Devices, Inc. delivered Q2 2026 revenue of $11.5 billion, up 50% year-over-year, with data center revenue reaching $6.7 billion.AMD’s CapEx increase reflects AI demand constraints, customer commitments, and capacity expansion rather than speculative infrastructure spending.Helios demand exceeded initial expectations, while AMD expects data center revenue to more than double by 2027.AMD’s valuation depends on successful AI execution, converting higher investment into accelerating revenue and free cash flow growth. Borislav/iStock via Getty Images

Advanced Micro Devices, Inc.'s (AMD) recent downtrend is the consequence of the investor concern regarding AMD's increased spending and its potential effect on free cash flow. Yet, I think that this spending cycle is misunderstood by

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) delivered close to the quarter the bulls wanted, and the shares fell almost 9% anyway.

Revenue of $11.5 billion was up 50% year on year and ahead of the $11.28 billion consensus, while adjusted earnings of $1.66 a share beat forecasts of about $1.60.

Data centre revenue, the only line that really matters now, more than doubled to $6.7 billion.

Guidance for the current quarter of $12.7 billion to $13.3 billion was in line, and Lisa Su told analysts that data centre revenue would more than double again in 2027, with server sales growing more than 80%.

The stock had risen 7% during the session before reversing in extended trading.

Too few baskets

The discomfort is about who is doing the buying. AMD's accelerator growth rests on a very short list of names: OpenAI, Meta, Anthropic, Microsoft and Oracle, plus a handful of specialist GPU cloud providers.

Su acknowledged as much on the call, conceding that interest exists beyond the frontier model developers, but at a more ordinary scale rather than the gigawatt scale.

None of those largest customers has yet demonstrated that it can fund this level of spending out of its own profits.

That makes AMD's 2027 inflexion dependent on the willingness of capital markets to keep financing AI infrastructure, which is precisely the thing that has begun to wobble.

The Philadelphia semiconductor index has fallen roughly 20% from its late June peak, wiping more than $1 trillion from the value of chipmakers globally, with no deterioration in reported demand to explain it.

The circle

The structure of AMD's marquee deals sharpens the point. Meta's agreement to take up to six gigawatts of Instinct GPUs came with warrants over as much as 10% of AMD's equity, priced at a penny a share and vesting in full only if the stock reaches $600.

OpenAI holds a near-identical arrangement covering a similar six gigawatts.

Roughly a fifth of the company is therefore potentially owed to two of its largest customers, whose incentive to keep ordering is written directly into their own prospective shareholdings.

The Anthropic agreement, covering up to two gigawatts of MI450 series chips in Helios racks from the first half of 2027, goes a step further, because AMD is investing up to $5 billion into the customer.

Supporters read this as incentive alignment, while sceptics read it as revenue the supplier has partly funded itself.

Either way, the headline gigawatt numbers are "up to" commitments contingent on deployment milestones, and commitments are not shipments.

Little cushion elsewhere

The rest of the portfolio offers limited protection. Gaming revenue fell 31% to $779 million as the console cycle winds down, and although client sales rose 23% to $3.1 billion, AMD warned that surging memory prices will eat into personal computer demand over the coming quarters.

Embedded revenue grew 19% to $977 million.

Helios, the rack-scale system that takes on Nvidia's complete platforms rather than merely its chips, only begins shipping this quarter, with modest volumes before a step up in the fourth quarter and into 2027.

Valuation does the rest of the work, given the shares have risen nearly 130% this year and trade on roughly 69 times forward earnings.

At that multiple, meeting expectations is not enough, and a growth story resting on five customers and a 2027 acceleration invites investors to ask what happens if any one of them blinks.

Advanced Micro Devices, Inc. (AMD) Q2 2026 Earnings Call August 4, 2026 5:00 PM EDT

Company Participants

Matthew Ramsay - Vice President of Financial Strategy & Investor Relations
Lisa Su - Chair, President & CEO
Jean Hu - Executive VP, CFO & Treasurer

Conference Call Participants

Thomas O'Malley - Barclays Bank PLC, Research Division
Timothy Arcuri - UBS Investment Bank, Research Division
Vivek Arya - BofA Securities, Research Division
Joshua Buchalter - TD Cowen, Research Division
Aaron Rakers - Wells Fargo Securities, LLC, Research Division
Stacy Rasgon - Bernstein Institutional Services LLC, Research Division
James Schneider - Goldman Sachs Group, Inc., Research Division
Christopher Muse - Cantor Fitzgerald & Co., Research Division
Joseph Moore - Morgan Stanley, Research Division
Atif Malik - Citigroup Inc., Research Division

Presentation

Operator

Greetings, and welcome to the AMD Second Quarter 2026 Conference Call. [Operator Instructions] And please note that this conference is being recorded.

I will now turn the conference over to Matt Ramsey, VP, Financial Strategy and IR. Thank you, Matt. You may begin.

Matthew Ramsay
Vice President of Financial Strategy & Investor Relations

Thank you, and welcome to AMD's Second Quarter 2026 Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings press release and the accompanying slides. If you have not had the chance to review these materials, they can be found on the Investor Relations page of amd.com. Today, we will refer primarily to non-GAAP financial measures during the call. The full non-GAAP to GAAP reconciliations are available in today's press release and slides posted on our website.

As a reminder, our second quarter 2025 results included approximately $800 million of inventory and related charges associated with U.S. export control restrictions on MI308 shipments to China. Unless otherwise noted, comments making year-over-year comparisons exclude the impact of those charges to provide a more comparable and

Results land on Tuesday after-hours with data centre revenue expected to double and the sector in retreat

Advanced Micro Devices Inc's (NASDAQ:AMD, XETRA:AMD) second-quarter print is the official set-piece since a sharp reversal in sentiment towards semiconductor stocks.

The Philadelphia Semiconductor index has fallen roughly 20% from its late-June peak, wiping more than $1 trillion from the value of chipmakers worldwide, even though it remains up around 90% over 12 months.

The retreat has been driven by doubts about whether hyperscalers can sustain their current rate of spending on artificial intelligence infrastructure, rather than by any deterioration in demand.

Fresh worries about Chinese competition in memory chips, and about the circular financing arrangements linking chip suppliers to their largest customers, have compounded the mood.

AMD shares closed at $476.15 on Friday, having been quoted above $550 a fortnight ago, though they remain up sharply over the past year.

The numbers themselves are expected to be striking.

Analysts forecast earnings of about $1.62 a share on revenue of $11.3 billion, against $0.48 and $7.6 billion in the same quarter last year.

The company had guided to $11.2 billion, give or take $300 million, with a non-GAAP gross margin near 56%.

Data centre revenue is expected to have more than doubled to roughly $6.5 billion from $3.2 billion, with server processor sales growing more than 70%.

The client division, which supplies chips for personal computers, is forecast to bring in around $3 billion, up 20%, while gaming is expected to fall 30% to $781 million.

Rising memory prices are squeezing the PC market, a headwind for both AMD and Intel in the coming quarters.

Attention will focus less on the quarter just gone than on execution of the Helios rack-scale system, which AMD says entered full production last month.

Helios packs 72 of the company's MI455X accelerators alongside its Venice server processors and Pensando networking, priced at roughly $5 million to $5.5 million a rack, and is pitched directly against Nvidia's rival systems.

Lisa Su, chief executive, has claimed the rack delivers 15% more compute performance than Nvidia's Vera Rubin, 50% more high-bandwidth memory and 30% more output per dollar spent.

First customer shipments are due late in the third quarter, meaning meaningful revenue will not arrive until the fourth.

AMD has commitments from OpenAI for up to six gigawatts of capacity and from Anthropic for up to two, alongside deployments at Microsoft.

The constraint is HBM4 memory, the scarcest component in the AI supply chain, and one AMD does not control.

Key Takeaways AMD expects double-digit sequential Data Center growth, led by EPYC CPUs and Instinct AI accelerators.Server CPU revenues are projected to rise more than 70% year over year on Turin demand and share gains.Cloud expansions, ROCm gains and Meta's planned GPU deployment may support Data Center growth. Advanced Micro Devices (AMD - Free Report) is expected to have benefited from strong Data Center revenues in the second quarter of 2026, the results of which are scheduled to be released on Aug. 4, 2026. Click here to know how AMD’s overall second-quarter performance is likely to be.

AMD’s Data Center Revenues to Ride on Strong EPYC DemandAMD's Data Center business is expected to have benefited from continued strength in EPYC server CPUs and Instinct AI accelerators. The company guided for double-digit sequential growth in the Data Center segment, driven by more than 70% year-over-year growth in server CPU revenues as hyperscalers and enterprise customers expanded AI infrastructure deployments.

Demand for EPYC processors is expected to have benefited from accelerating AI adoption, particularly inferencing and agentic AI workloads, which require additional CPU compute for orchestration, data movement and accelerator head-node functions. Per AMD, every major cloud provider has been expanding its EPYC footprint, while enterprise adoption continued to strengthen across financial services, healthcare, industrial and digital infrastructure customers.

The company also projected server CPU revenue to grow more than 70% year over year in the to-be-reported quarter, reflecting continued market-share gains and robust demand for fifth-generation EPYC Turin processors. AMD faces stiff competition from Intel (INTC - Free Report) in the server CPU market. Intel continues to emphasize AI-optimized Xeon processors for inference workloads, extensive software compatibility and a broad OEM ecosystem. Intel is also investing in AI accelerators and integrated CPU-GPU solutions, while leveraging its long-standing presence in enterprise data centers to defend its installed base.

The Data Center AI business is also expected to have contributed meaningfully to second-quarter performance. The business is likely to have benefited from continued customer engagement, growing production deployments and expanding demand for Instinct GPUs across cloud, enterprise and sovereign AI customers. This has been helping AMD steer off competition from the likes of NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) .

Cloud customer momentum is expected to have remained another tailwind in the to-be-reported quarter. AMD expanded EPYC-powered cloud instances with AWS, Google Cloud, Microsoft Azure and Tencent, while Meta committed to deploying up to 6 gigawatts of AMD Instinct GPUs and adopting sixth-generation EPYC processors. These partnerships, together with ongoing software improvements through ROCm and strong MLPerf benchmark results, are expected to have reinforced AMD's competitive position in AI infrastructure and supported continued Data Center growth in the second quarter.

The Zacks Consensus Estimate for second-quarter Data Center revenues is pegged at $6.497 billion, indicating impressive year-over-year growth of 100.5%.

AMD Faces Stiff Competition in Data CenterBroadcom is emerging as one of AMD's biggest competitors in AI infrastructure through its custom AI accelerator (XPU) business. Broadcom expects AI semiconductor revenues to reach $56 billion in fiscal 2026 and exceed $100 billion in fiscal 2027, supported by multi-generation custom AI chip programs with Google, Meta, OpenAI and other hyperscalers. Broadcom is also strengthening its networking leadership with 100-terabit and upcoming 200-terabit Ethernet switches, co-packaged optics, high-speed SerDes and AI fabrics that support massive AI clusters.

NVIDIA continues to dominate AI infrastructure through its integrated hardware, networking and software ecosystem. NVIDIA reported $75 billion in Data Center revenue in the first quarter of fiscal 2027, driven by rapid adoption of Blackwell systems across hyperscalers, AI cloud providers, enterprises and sovereign AI deployments. Beyond GPUs, NVIDIA is widening its competitive moat through its full-stack platform that combines Grace CPUs, Blackwell GPUs, NVLink, Spectrum-X Ethernet, InfiniBand networking and CUDA software.

Client & Gaming Expected to Support AMD’s Q2 ResultsAMD’s Client & Gaming segment is expected to post modest sequential growth in the second quarter of 2026, supported by continued strength in the client business. Gaming revenues are also expected to contribute to second-quarter growth. Overall, AMD guided for modest sequential growth in the Client & Gaming segment in the second quarter.

The Zacks Consensus Estimate for second-quarter Client & Gaming revenues is pegged at $3.824 billion, indicating sequential growth of 6%.

AMD’s Embedded Expected to Accelerate in Q2AMD expects the Embedded segment to rebound in the second quarter of 2026 with double-digit sequential and year-over-year revenue growth. The improvement is expected to have been driven by strengthening demand across multiple end markets following the return to year-over-year growth in the first quarter. Continued momentum in embedded computing, supported by increasing adoption of embedded x86 products, strong design-win activity and expanding opportunities across adaptive computing, communications, aerospace & defense, and industrial markets.

The Zacks Consensus Estimate for second-quarter Embedded revenues is pegged at $948 million, indicating year-over-year growth of 15%.

Zacks RankAMD currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advanced Micro Devices (NASDAQ: AMD | AMD Price Prediction) has been one of the loudest AI stories of 2026. Even after a brutal week of profit taking, Wall Street is being too cautious.

AMD trades at $429.56 as of July 29, 2026, and our 24/7 Wall St. price target is $563.35, implying 31.15% upside over the next 12 months. Our recommendation is buy, with confidence at 90%.

  24/7 Wall St. Price Target Summary Metric Value Current Price $429.56 24/7 Wall St. Price Target $563.35 Upside 31.15% Recommendation BUY Confidence Level 90% A Wild Ride to a $700 Billion Market Cap AMD is up 100.58% year to date and 142.09% over the past year. The last week stripped out 22.23%, dropping the stock from $552.33 to 2%. Shares sit only $584.73 below the 52-week high. The recent Anthropic deal locking up 2 gigawatts of AI demand adds to catalysts including 6 gigawatts each with OpenAI and Meta.

Fundamentals validate the run. Q1 2026 revenue of $10.253 billion beat expectations by 3.41% and grew 37.85% year over year, with Data Center up 57% to $5.775 billion. Non-GAAP EPS of $1.37 beat by 5.88%, and management guided Q2 to roughly $11.2 billion, or 46% YoY growth.

The Case for $629 and Beyond Our bull case points to $629.11, a 46.45% return. Lisa Su told investors “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations”.

The pipeline backs her up: Meta’s 6 GW deployment with custom MI450 silicon, OpenAI’s 6 GW commitment, and Oracle’s 27,000-plus node cluster using MI355X. Free cash flow surged 252.96% YoY to $2.566 billion in Q1 alone. Prediction markets peg the odds of AMD beating next earnings at 82.5%.

What Could Go Wrong Our bear case lands at $434.63, barely above today’s price. AMD trades at a trailing P/E of 164 and a forward P/E of 69, both rich even for AI. Export controls on MI308 shipments to China created roughly $440 million in FY2025 net charges.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

TSMC dependency, tariffs, and NVIDIA’s entrenched AI GPU lead remain real risks. Most bear items are known, and AMD has beaten revenue every quarter over the last year while margins expanded 170 bps YoY.

How AMD Compares to NVIDIA and Intel NVIDIA (NASDAQ: NVDA) is the incumbent AI GPU king. NVIDIA trades at a trailing P/E of roughly 38 with Q1 FY2027 revenue of $81.6 billion, up 85.2% YoY. On a forward multiple basis NVIDIA is cheaper than AMD (69 forward P/E) despite higher growth. AMD trades on the second-derivative story: hyperscalers diversifying away from a single supplier. If MI450 ships on time, the multiple gap narrows quickly.

Intel (NASDAQ: INTC) is the direct x86 server competitor. Intel’s Q2 2026 revenue of $16.13 billion beat by 11.64%, but Data Center and AI at $6.26 billion still trails AMD despite Intel’s larger installed base. Intel Foundry lost $2.1 billion in the quarter. AMD’s fabless model and superior EPYC share momentum make the peer group look supportive at our $563 target.

I’d Be a Buyer Here Our 24/7 Wall St. price target of $563.35 reflects a buy at 90% confidence. The tipping factor is visibility Lisa Su called out: multi-gigawatt customer commitments stretch into 2027 and beyond.

I’d be a buyer if MI450 volume shipments arrive on schedule in H2 2026 and Data Center growth stays above 40% YoY. I’d stay on the sidelines if China export policy tightens or Q2 Data Center revenue slips below the $6.25 billion threshold that prediction markets price at 93% probability.

Year 24/7 Wall St. Price Target 2026 $563.35 2027 $655 2028 $755 2029 $845 2030 $932.91 These projections assume AMD executes on its MI450 and 6th Gen EPYC roadmap. Significant upside or downside could result from AI capex normalization, China export restrictions, or share shifts in the accelerator market.

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Key Takeaways AMD expects Q2 revenues of $11.2B, implying 46% year-over-year growth at the midpoint.Data Center growth is expected to reflect strong demand for EPYC processors and Instinct AI accelerators.A stretched valuation and competition from NVIDIA, Broadcom and Intel remain key concerns. Advanced Micro Devices (AMD - Free Report) is set to release its second-quarter 2026 results on Aug. 4.

AMD expects second-quarter 2026 revenues of $11.2 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of 46% and 9% sequential growth.

The Zacks Consensus Estimate for AMD’s second-quarter revenues is pegged at $11.32 billion, suggesting year-over-year growth of 47.3%. The consensus mark for second-quarter 2026 earnings is pegged at $1.61 per share, up by a penny over the past 30 days. The earnings estimate indicates growth of 235.42% on a year-over-year basis.

Consensus Estimate Trend
Image Source: Zacks Investment Research

AMD beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 6.5%.
 

Let’s see how things have shaped up for the upcoming earnings announcement.

Factors to Note Ahead of AMD’s Q2 ResultsAMD’s second-quarter 2026 results are expected to have been driven by continued strength in its Data Center business. Accelerating demand for EPYC server processors and Instinct AI accelerators is expected to have driven top-line growth. Strong inference workloads, increasing enterprise AI deployments and higher cloud spending likely boosted shipments of Instinct GPUs, while expanding adoption of fifth-generation EPYC processors across hyperscale and enterprise customers is expected to have supported server CPU revenues. AMD has highlighted improving customer engagement for the upcoming MI450 accelerator family and Helios AI rack platform, indicating robust AI infrastructure demand.

AMD is likely to have benefited from broader deployment across leading cloud providers during the quarter. Expanded EPYC-powered instances at AWS, Microsoft Azure, Google Cloud and Tencent, along with collaborations involving Meta, Samsung, Tata Consultancy Services, NAVER Cloud and Upstage, are expected to have strengthened AI infrastructure revenues. Meta’s planned deployment of AMD Instinct GPUs and adoption of next-generation EPYC processors, together with growing sovereign AI projects and strong MLPerf benchmark performance, likely reinforced customer confidence and accelerated design wins during the to-be-reported quarter.

AMD’s Client segment is expected to have benefited from sustained demand for Ryzen processors and expanding AI PC adoption. Commercial refresh cycles, enterprise deployments of Ryzen AI PRO processors and increasing Copilot+ PC launches are likely to have supported notebook and desktop processor shipments. Continued market share gains in premium consumer PCs, together with demand for high-end Ryzen X3D processors targeting gaming and creator workloads, are expected to have contributed to the revenue growth in the to-be-reported quarter. Meanwhile, Embedded revenues are likely to have remained stable as industrial and edge AI demand continued improving across multiple end markets.

However, AMD continues to face stiff competition from NVIDIA (NVDA - Free Report) , Broadcom (AVGO - Free Report) and a resurgent Intel (INTC - Free Report) . AMD continues to face intense competition in AI accelerators and server processors from NVIDIA in AI GPUs and Intel in CPUs. Intel is aggressively working to regain server market share through its expanding Xeon roadmap, Intel Foundry and advanced packaging technologies. Broadcom is increasing competitive pressure on AMD by strengthening its position in custom AI accelerators and high-performance networking for hyperscale customers. The intensifying competition is expected to have hurt AMD’s top-line growth and margin expansion prospects in the second quarter of 2026.

AMD Stock Outperforms Sector, Valuation StretchedAdvanced Micro Devices shares have surged 128.7% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 6.9%. The company’s shares have underperformed Intel but outperformed NVIDIA and Broadcom, YTD. Shares of Intel, Broadcom and NVIDIA have appreciated 150.5%, 12.1% and 4.8%, respectively.

AMD’s Share Price Performance
Image Source: Zacks Investment Research

The AMD stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.

In terms of the forward 12-month price/sales, AMD is currently trading at 12.35X, higher than the sector’s 6.01X, Broadcom’s 11.26X, NVIDIA’s 10.17X and Intel’s 7.01X.

AMD Stock’s Valuation
Image Source: Zacks Investment Research

AMD Rides on Strong Portfolio Amid Stiff CompetitionAMD's long-term growth outlook remains supported by its expanding Instinct GPU roadmap, including the MI450 series and Helios rack-scale AI systems. The company is increasingly offering full-stack AI infrastructure that combines CPUs, GPUs, networking and software, enabling it to compete for large AI clusters at hyperscalers and enterprise customers. Increasing cloud adoption, enterprise digital transformation, telecommunications infrastructure and edge computing are expected to provide sustained demand for AMD’s server CPU. The introduction of sixth-generation EPYC processors and expanding partnerships with major cloud providers should further strengthen AMD’s competitive position over the long term.

Beyond data centers, AMD is expanding AI capabilities across PCs, embedded computing, industrial automation, networking and telecommunications. The company’s growing portfolio of Ryzen AI processors, adaptive computing products and embedded AI solutions broadens its addressable market while reducing dependence on any single end market. Continued investments in AI software and ecosystem partnerships further enhance AMD’s long-term competitive position.

Nevertheless, AMD faces stiff competition, which keeps investors on edge. NVIDIA remains AMD’s biggest competitor in AI accelerators through its unmatched full-stack AI platform. The company continues to expand beyond GPUs by integrating Blackwell GPUs, Grace and upcoming Vera CPUs, NVLink networking, Spectrum-X Ethernet, InfiniBand and the CUDA software ecosystem into complete AI factory solutions. Broadcom focuses on custom XPUs, advanced networking silicon and long-term hyperscaler partnerships that enable customers to build AI infrastructure optimized for their own workloads. Intel is investing heavily in Intel 18A and 14A process technologies, EMIB-T advanced packaging and purpose-built AI silicon while leveraging its manufacturing scale to increase capacity.

ConclusionAMD enters its second-quarter 2026 earnings with strong momentum, supported by robust demand for EPYC server processors, Instinct AI accelerators and Ryzen AI PCs. Its expanding AI infrastructure portfolio, growing cloud partnerships and diversified presence across data centers, PCs, embedded computing and edge AI position the company well to capitalize on the long-term AI investment cycle. While fierce competition from NVIDIA, Broadcom and Intel is likely to remain a key challenge, AMD’s consistent execution, expanding product roadmap and strong customer adoption provide confidence in its long-term growth prospects.

AMD currently has a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The upcoming report from Advanced Micro Devices (AMD - Free Report) is expected to reveal quarterly earnings of $1.61 per share, indicating an increase of 235.4% compared to the year-ago period. Analysts forecast revenues of $11.32 billion, representing an increase of 47.3% year over year.

Over the last 30 days, there has been an upward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Advanced Micro metrics that are commonly tracked and projected by analysts on Wall Street.

It is projected by analysts that the 'Net Revenue- Data Center' will reach $6.50 billion. The estimate indicates a year-over-year change of +100.5%.

The consensus among analysts is that 'Net Revenue- Embedded' will reach $947.91 million. The estimate suggests a change of +15% year over year.

The consensus estimate for 'Net Revenue- Gaming' stands at $812.32 million. The estimate points to a change of -27.6% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Revenue- Client' of $3.03 billion. The estimate indicates a change of +21.3% from the prior-year quarter.

View all Key Company Metrics for Advanced Micro here>>>

Advanced Micro shares have witnessed a change of -20.6% in the past month, in contrast to the Zacks S&P 500 composite's -1.5% move. With a Zacks Rank #2 (Buy), AMD is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) saw its price target raised to $600 from $450 by Wedbush following the chipmaker’s Advancing AI 2026 event, with the analysts writing that new partnerships and improving supply chain conditions increased confidence in the company’s data center AI growth trajectory.

AMD hosted its Advancing AI 2026 event on Wednesday and Thursday, featuring a keynote presentation from CEO Lisa Su and management followed by an investor roundtable. Wedbush noted that management avoided discussing near-term financial performance ahead of AMD’s second-quarter 2026 earnings report, leaving the event focused primarily on the company’s broader AI strategy.

The analysts wrote that AMD is increasingly positioning itself as an “end-to-end compute franchise” spanning GPUs, CPUs, networking, software, client computing and physical AI, while highlighting a broad group of enterprise and frontier AI partners.

“Net, we came away incrementally more constructive on AMD's competitive trajectory,” Wedbush wrote, adding that conversations with server vendors and supply chain participants around the event pointed to continued acceleration in AI infrastructure investment and opportunities across the broader ecosystem.

Wedbush wrote that newly announced agreements with Microsoft and Anthropic provided greater confidence that AMD’s data center AI silicon and systems revenue will “substantially accelerate” in the second half of 2026 and through 2027.

The analysts also highlighted improving supply conditions, writing that AMD appears to be making progress in addressing constraints and meeting elevated customer demand for data center compute. Based on the event and industry checks, Wedbush increased its assumptions for AMD’s data center CPU and GPU revenue growth in 2026 and 2027, lifting its revenue and earnings expectations.

Wedbush also pointed to AMD’s partnership with Cerebras, writing that the collaboration combines Cerebras’ Wafer Scale Engine technology with AMD systems to target ultra-low-latency AI inference workloads. Initial deployments are expected later this year through Cerebras Cloud.

The analysts wrote that the relationship is likely to be revenue accretive compared with prior expectations for Cerebras and represents further validation of the company’s approach to delivering high-speed AI inference capabilities.

Wedbush also highlighted VAST Data as a potential beneficiary of AI infrastructure spending, writing that the privately held company appears to have emerged as a significant supplier of data management solutions for neocloud and AI model-building customers.

While the analysts noted that VAST’s software licenses can represent a meaningful cost for customers, they wrote that users highlighted benefits including improved storage efficiency, ease of use and faster returns on cloud infrastructure investments.

On Super Micro Computer, Wedbush wrote that industry conversations supported the view that the company’s recent margin expansion could be partly sustainable, potentially driven by a shift toward higher-value deployments and tight supply conditions. However, the analysts noted they would have greater confidence in the margin outlook with additional feedback on changes within Super Micro’s business.

Wedbush said continued AI infrastructure investment should support further growth across the sector, citing conversations with neocloud providers, data center builders, server vendors and component suppliers that pointed to ongoing acceleration in data center expansion.

The analysts also highlighted memory demand tied to AMD’s AI products, noting that newer Instinct offerings are expected to require significantly more high-bandwidth memory. Wedbush wrote that tight NAND and DRAM availability could continue until additional supply comes online in 2028, with price increases potentially starting at 20% in the third quarter and exceeding 30% in some cases.

Shares of AMD are up more than 150% so far this year, trading hands at $538 on Friday afternoon.

TSMC’s Price Hikes Could Show Which AI Chip Stocks Have Real Pricing PowerAdvanced Micro Devices NASDAQ: AMD executives used a question-and-answer session at the company’s Advancing AI 2026 conference to expand on its AI data center roadmap, customer engagements and expectations for growth in CPUs, GPUs and full rack-scale systems.

Chair and CEO Dr. Lisa Su said AMD is “tremendously excited” about the opportunity in AI and highlighted the company’s Venice CPU launch and Helios rack-scale systems as key parts of its strategy. Matt Ramsay, who leads financial strategy and investor relations at AMD, told participants that management would not discuss near-term financial results ahead of the company’s upcoming second-quarter earnings report.

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AMD Sees Expanding CPU Opportunity From Agentic AI AMD’s $5 Billion Anthropic Deal Could Redraw the AI Chip BattleExecutives said AI workloads are increasing demand for CPUs, particularly as agentic AI requires more orchestration around end-to-end workloads. Su said AMD remains focused on capturing more than 50% of the CPU market, citing progress in recent quarters and rising customer interest in Venice.

Dan McNamara, who runs AMD’s server business, said the company’s estimate of the CPU server market was based on customer discussions and analysis of AMD’s own workloads. In the “outer years,” he said agentic AI applications could represent “probably like 50%” of the CPU server opportunity.

The 2026 Blueprint: 6 Stocks for a Brand New PortfolioSu added that CPU-to-GPU ratios could change meaningfully as AI systems evolve. While some head-node configurations today may use four GPUs per CPU, she said agentic AI could eventually push the ratio above one CPU per GPU, potentially reaching two CPUs for one GPU in some scenarios.

Helios Shipments to Begin in September Su clarified that AMD expects first shipments of Helios systems to begin in the third quarter, specifically in September. She said the ramp will continue into the fourth quarter and the first half of next year.

“We’ve actually built the ramp this way because it is a complex system,” Su said, adding that AMD wants original design manufacturers to tune the manufacturing process and align shipments with customer data center buildouts.

On customer deployments, Su said Anthropic, OpenAI and Meta moving into Helios is “a big deal for AMD.” Regarding Anthropic, she said AMD will start shipments for the first gigawatt in the first half of 2027 and aims to get as much of that first gigawatt into 2027 as possible, depending on data center readiness. AMD previously announced up to 2 gigawatts for the MI450 engagement with Anthropic.

Customer Deals Seen as Multi-Generation Relationships Asked about the Anthropic agreement, Su said each large customer engagement is structured differently, but she emphasized that customers generally do not choose an accelerator for only one generation because of the engineering effort involved.

“We are actively talking with every one of our largest customers, including Anthropic, about what’s beyond MI450,” Su said. She said there is “a lot of excitement” around MI500 and discussions about future workloads beginning with MI600.

Vamsi Kompella, who runs AMD’s AI business, said AMD is also working with Anthropic to tune and extend Claude’s capabilities for high-performance optimization on AMD platforms. He said AMD’s open approach to instruction sets, compilers and tool chains helps AI systems become productive on the platform more quickly.

Kompella also discussed ROCm.ai, calling it AMD’s biggest software leap since the early days of its strategy. He said collaborations with OpenAI on Codex and Anthropic on Claude are expected to improve developer access to AMD platforms over the coming months.

Manufacturing, Power and Deployment Are Key Focus Areas Su said AMD’s market projections consider not only demand but also power availability, supplier capacity and customer capital. She said AMD has planned capacity for “significant growth” in 2027 and 2028, while longer-term growth in 2029 and 2030 would require the broader ecosystem to build at a similar pace.

Forrest Norrod, who leads AMD’s data center business, said AMD is working closely with OEM and ODM partners, including Sanmina and Wiwynn, to ensure capacity to build, integrate, test and validate rack-scale systems. He also said AMD retained a large services arm from its ZT acquisition, which is being used for internal deployments and to help customers deploy MI350 and MI455 systems.

Su added that AMD now works with customers much earlier in the data center planning process, saying the company has “easily 12 to 18 months of visibility” into power planning and corresponding GPU and Helios system needs.

Roadmap Includes MI500 Networking and Memory Flexibility Norrod said the MI500 generation is expected to begin a transition from purely electrical scale-up networking toward optical networking, though he emphasized it will not be an immediate shift. He said AMD is working with ecosystem partners and expects optical technologies to play a larger role over future generations.

On scale-up protocols, Norrod said MI450 supports UALink transported over Ethernet and that ESUN is a set of Ethernet extensions that can help with that approach. He said AMD expects UALink over Ethernet to continue into MI500, while adding that the company will provide more detail closer to the MI500 timeframe.

Asked about HBM memory, Kompella said AMD studies workload characteristics and separates bandwidth and capacity considerations. He said AMD’s chiplet architecture gives it flexibility to optimize memory capacity while preserving bandwidth constraints. Su added that memory capacity remains valuable to customers, including for inferencing performance, but said AMD will work to ensure memory is used efficiently because it is a significant part of total cost of ownership.

Su closed the session by saying AMD views AI as “a complete compute picture,” spanning CPUs, GPUs, Helios systems and other compute elements. She said AMD believes it can differentiate through an end-to-end approach across AI infrastructure.

About Advanced Micro Devices (NASDAQ:AMD)Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Item 1 of 2 AMD logo is seen in this illustration created on June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

[1/2]AMD logo is seen in this illustration created on June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

July 23 (Reuters) - Eric Trump-backed Foundation Future Industries said on Thursday it is partnering with AMD (AMD.O), opens new tab to use its ​chips to co-develop autonomous humanoid robots for military ‌and industrial use.

The son of U.S. President Donald Trump has been an investor in the start-up since early this year and serves ​as chief strategy advisor, the company said.

The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here.

The Trump family's ​investments in several companies have drawn scrutiny, particularly ⁠its stakes in defense firms that regularly compete for ​government contracts, raising concerns about potential conflicts of interest.

Eric Trump ​and his brother, Donald Trump Jr., have also backed Israeli drone-maker XTEND (JFB.O), opens new tab, Unusual Machines (UMAC.A), opens new tab and Powerus.

Under the deal, whose value was not disclosed, ​Foundation plans to use AMD Ryzen AI Embedded X100 ​Series processors — introduced by the chipmaker in January, opens new tab this year — to build the ‌second ⁠version of its robot, Phantom MK-2.

The start-up, founded in 2024, said it has deployed its Phantom MK-1 robots to contribute in building more than 24,000 cars in 2025.

In October, ​the company will ​open a ⁠factory capable of building 5,000 Phantom robots annually, with plans to start building another facility ​early next year with an annual capacity of ​50,000 ⁠robots, CEO Sankaet Pathak told Reuters.

Each industrial-use robots, leased to customers, cost about $100,000 per year, Pathak said.

On the defense side, ⁠the ​company is developing robots for materials ​handling and reconnaissance, which are sold to the government at $300,000 a unit, he ​added.

Reporting by Aishwarya Jain in Bengaluru; Editing by Vijay Kishore

Our Standards: The Thomson Reuters Trust Principles., opens new tab

22.7.2026 14:57, AMD

Společnosti AMD a Anthropic podepsaly dohodu na dodávky serverů pro umělou inteligenci v hodnotě desítek miliard dolarů. Tento podle krok deníku Wall Street Journal posiluje konkurenční pozici AMD vůči lídrovi trhu Nvidia a zároveň poskytuje startupu Anthropic tolik potřebný výpočetní výkon.

Anthropic podle podmínek dohody odkoupí nejnovější generaci čipů AMD s označením Instinct MI450 v objemu až 2 gigawattů, a to od první poloviny roku 2027. Společnost AMD zároveň po dosažení stanovených milníků v odběru čipů investuje do Anthropicu až 5 mld. USD, což představuje její vůbec první přímý finanční vstup do této AI firmy.

„Velmi jsme usilovali o to, abychom se stali významnou součástí jejich infrastruktury,“ uvedla generální ředitelka AMD Lisa Su a dodala, že inženýrské týmy obou společností již nějakou dobu úzce spolupracují.

Anthropic v rámci nové dohody nakoupí část čipů AMD pro vlastní datová centra a další část kapacity si pronajme prostřednictvím velkých cloudových poskytovatelů či specializovaných neocloudů. Obě firmy aktuálně společně vybírají vhodná datová centra pro umístění těchto čipů, doplnila Su.

Akcie AMD Akcie AMD (AMD) v předburzovní fázi obchodování klesají o 3,16 % na 527,20 USD.

Zdroj: Wall Street Journal

Michal Šnobl
Fio banka, a.s.
Prohlášení

HomeStock IdeasLong IdeasTech 

SummaryRecent multi-year partnerships with Meta and OpenAI, each for 6 GW of AI infrastructure, could generate up to $120 billion in Data Center revenue through 2030.AMD's Helios platform integrates CPUs, GPUs, networking, and software, positioning AMD as a more formidable competitor to Nvidia in rack-scale AI systems.Potential shareholder dilution risk exists if up to 320 million warrants from Meta and OpenAI are exercised, representing a possible 19.6% increase in shares outstanding. Getty Images

By Khaveen Jey, CFA, FMVA, Portfolio Manager @ Khaveen Investments & Anthony Goh, Senior Investment Research Analyst @ Khaveen Investments

In our previous analysis, we compared AMD (AMD) with Intel (INTC) and explained

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Khaveen Investments is registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the U.S. SEC does not imply a certain level of skill or training. No information in this publication is intended as investment, tax, accounting, or legal advice, or as an offer/solicitation to sell or buy. Material provided in this publication is for educational purposes only and was prepared from sources and data believed to be reliable, but we do not guarantee its accuracy or completeness.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

News Highlights

Microsoft to ramp AMD Helios™ at scale on Azure to power frontier model inference for Microsoft, its AI customers and Azure AI services. Azure will add two new VMs powered by 6th Gen AMD EPYC™ “Venice” processorsAzure deploys AMD Pensando™ DPUs in AMD AI backend networking infrastructure and select Azure services.The companies are integrating AMD silicon with Azure Boost to scale cloud networking performance across the fleet. SANTA CLARA, Calif., July 20, 2026 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today announced an expanded strategic partnership spanning AMD GPUs, CPUs, networking and software on Microsoft Azure. At the center of this expansion, Microsoft will deploy the AMD Helios Rackscale Solution, to power frontier model AI inference for Microsoft, its AI customers and support Azure AI services. Azure will also add two new AMD EPYC CPU-powered VM series and broaden its deployment of Pensando DPUs to support Azure networking services. AMD will begin shipping Helios to customers, including Microsoft, in the second half of 2026.

AMD Helios combines AMD Instinct™ MI455X GPUs, AMD EPYC™ "Venice" CPUs, Pensando™ networking and ROCm™ software in an open, integrated rackscale platform built for large-scale AI training and inference. The Azure deployment will use Helios for inference workloads spanning frontier models, Azure AI services and customer applications.

“AMD and Microsoft have spent years building high-performance infrastructure together, and today we're extending that partnership across the full stack of AMD AI solutions on Azure,” said Dr. Lisa Su, Chair and CEO, AMD. “Microsoft's new AMD deployments mark an important milestone as we deliver leadership compute solutions to Azure customers and scale the next generation of AI infrastructure together.”

“Customers are looking for AI infrastructure that is optimized for a wide range of workloads, from training and inference to data preparation, search, and reinforcement learning," said Satya Nadella, Chairman and CEO, Microsoft. "Through our collaboration with AMD, we are expanding the Azure infrastructure portfolio with AMD Helios to give customers the performance, scale and choice they need to build and run the next generation of AI applications.”

The collaboration expands access to AMD AI infrastructure across Azure. Frontier model builders can now leverage AMD-powered infrastructure to train and serve large-scale AI models, while enterprise customers can deploy and scale production AI workloads through Azure Foundry Managed Compute.

Azure’s new VM series, Azure HDv2 for agentic AI and data pipelines, and Azure HXv2 for semiconductor design, will be powered by 6th Gen AMD EPYC “Venice” processors. Together, the new VM series broaden Azure’s AMD EPYC portfolio across AI, data and engineering workloads.

The collaboration also extends into the networking layer that connects and scales Azure infrastructure. Building on Microsoft’s broad deployment of AMD Pensando DPUs, the companies are integrating Azure Boost with AMD technologies to improve networking performance, efficiency and connection processing at cloud scale.

As AI demand accelerates, AMD and Microsoft will continue to deliver open, high-performance infrastructure that gives customers flexibility, efficiency and scale to build what's next.

Supporting Resources

Learn more about AMD Instinct acceleratorsLearn more about AMD EPYC processorsLearn more about AMD Pensando networking solutionsLearn more about AMD and Microsoft collaborationConnect with AMD on LinkedInFollow AMD on X About AMD

AMD (NASDAQ: AMD) drives innovation in high-performance and AI computing to solve the world’s most important challenges. Today, AMD technology powers billions of experiences across cloud and AI infrastructure, embedded systems, AI PCs and gaming. With a broad portfolio of AI-optimized CPUs, GPUs, networking and software, AMD delivers full-stack AI solutions that provide the performance and scalability needed for a new era of intelligent computing. Learn more at www.amd.com.

Cautionary Statement

This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the features, functionality, performance, availability, timing and expected benefits of AMD products and expanded collaboration with Microsoft, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and are generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: impact of government actions and regulations such as export regulations, import tariffs, trade protection measures, and licensing requirements; competitive markets in which AMD’s products are sold; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; AMD’s ability to introduce products on a timely basis with expected features and performance levels; loss of a significant customer; economic and market uncertainty; quarterly and seasonal sales patterns; AMD's ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD's products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, components (such as memory supply), substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD's ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD's reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD's reliance on Microsoft and other software vendors' support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; failure to maintain an efficient supply chain as customer demand changes; AMD's ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; impact of climate change on AMD’s business; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; AMD’s ability to satisfy financial obligations under guarantees, leases and other commercial commitments; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses; impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain key employees; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.   

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A brutal week for chip stocks ended with the PHLX Semiconductor Index in a bear market, down more than 20% from its June peak. Two of the AI (artificial intelligence) trade's flagship names went down with it. Advanced Micro Devices (AMD 1.03%) now trades about 15% below its high, while Broadcom (AVGO 0.70%) has fallen about 25% from its own.

Both companies, meanwhile, are executing about as well as they ever have. Falling stock prices and accelerating businesses make for a good time to compare the two.

So, which chipmaker deserves new money after the sell-off?

Image source: AMD.

AMD: accelerating, and priced like it AMD's first-quarter results showed a company hitting its stride. Revenue rose 38% year over year to $10.3 billion, led by the data center segment, where revenue climbed 57% to $5.8 billion on strong demand for its EPYC server processors and the continuing ramp of its Instinct AI accelerators. Non-GAAP (adjusted) earnings per share rose 43% to $1.37, and free cash flow hit a quarterly record of $2.6 billion. Even the client business, which sells chips for personal computers, grew 26%. Profitability is moving the right way, too, with the company's adjusted gross margin expanding to 55% from 54% a year earlier.

And the growth is speeding up. Management guided for second-quarter revenue of about $11.2 billion, implying roughly 46% year-over-year growth -- up from 38% in Q1. CEO Lisa Su said customer engagement around the company's upcoming MI450 series accelerators and Helios rack systems is strengthening, with forecasts from leading customers exceeding AMD's initial expectations.

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The problem is the price. At about $500 per share as of this writing, AMD trades at roughly 67 times this year's expected earnings and about 37 times next year's. The stock also pays no dividend.

That's a price that assumes AMD will continue to gain share in AI chips for years to come. It might. But that outcome is largely priced in already.

Broadcom: faster growth, cheaper stock Broadcom's fiscal second quarter (the period ended May 3, 2026) was arguably even stronger. Revenue climbed 48% year over year to $22.2 billion. The star was AI semiconductor revenue (the custom AI accelerators and networking chips it builds for cloud giants), which soared 143% to $10.8 billion. Adjusted net income came in at $12.1 billion, and free cash flow was $10.3 billion, a staggering 46% of revenue.

Additionally, Broadcom pays a quarterly dividend of $0.65 per share, yielding about 0.7% at the stock's current price. AMD offers no comparable income stream.

The outlook is even better.

"The momentum continues and in Q3 we expect semiconductor revenue from AI to grow over 200 percent year-over-year to $16.0 billion," said CEO Hock Tan in the company's fiscal second-quarter earnings release. Total revenue guidance calls for about $29.4 billion, up 84% year over year.

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Broadcom isn't all hypergrowth, though. Its infrastructure software segment, about a third of revenue, grew just 9% year over year. It's a profitable, steady business, but it dilutes the growth rate the chip side is producing. And the custom AI chip business leans on a handful of hyperscale customers, so orders can be lumpy, and a few buyers' decisions carry a lot of weight.

Still, the valuation math is hard to argue with. At about $370 per share, Broadcom trades at roughly 32 times this year's expected earnings and about 19 times next year's, roughly half of AMD's multiple on both counts.

The better buy right now On growth, Broadcom currently has the edge, with guidance calling for 84% revenue growth this quarter against the roughly 46% AMD's outlook implies. On cash, it isn't close. Broadcom generated about four times AMD's quarterly free cash flow, and it pays a dividend while AMD does not. And on price, Broadcom trades at about half AMD's multiple of expected earnings.

Of course, AMD is the purer bet on gaining share in AI accelerators. If the MI450 ramp exceeds forecasts next year, earnings estimates could race higher and make today's multiple look conservative. For investors who want maximum upside to that scenario, AMD is the more explosive stock -- in both directions.

But when the faster-growing business is also the cheaper stock and the stronger cash generator, the decision isn't difficult. I'd buy Broadcom over AMD after this sell-off.

Micron (MU 6.03%) surprised many investors when it reached a $1 trillion market cap in May. Investors may have seen the memory chip opportunity, but few of them anticipated the stock's 700% surge over the past year.

Broadcom (AVGO 4.53%) hit the same milestone in December 2024. These two companies demonstrate a pattern of chipmakers producing tremendous returns amid the AI boom. This trade has already been the source of several trillion-dollar success stories, and Advanced Micro Devices (AMD 6.46%) looks ready to join them.

The AI chipmaker -- which not long ago had acquired the nickname "Advanced Money Destroyer"  for its weak stock price performance -- has more than doubled its market cap year to date to around $840 billion. Strengthening fundamentals and a long-term plan have positioned Advanced Micro Devices to thrive in one of the biggest opportunities in tech right now.

Image source: Getty Images.

Analyzing the current data center opportunity AI data centers have been the major catalyst for Advanced Micro Devices. These facilities need the company's AI chips, and the deep backing it has won from big tech companies implies that the gravy train will continue for a while.

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Advanced Micro Devices delivered 38% year-over-year revenue growth in the first quarter, with data center revenue up by 57%. The data center segment makes up more than half of Advanced Micro Devices' total sales, which suggests its revenue acceleration will continue in future quarters.

The data center build-out isn't close to ending. Funding for Meta Platforms' 5-gigawatt Hyperion AI data center, located in Louisiana, recently crossed $50 billion, and it's still not finished. The final cost could end up being a lot higher, and it's only one of many AI data centers being built in the country.

AI processors are key equipment in data centers. In prior stages of the AI build-out, data center operators invested most heavily in GPUs (graphics processing units), which provide the bulk of the processing power required for training and inferencing workloads.

Recently, though, demand for CPUs (central processing units) has been steadily gaining momentum as AI infrastructure providers adjust to the reality that agentic AI will require data centers to be equipped with a much larger proportion of those chips. 

Advanced Micro Devices designs both GPUs and CPUs, positioning it to benefit regardless of which chips gain momentum faster. That could help lift it to a $1 trillion valuation and beyond.

Advanced Micro Devices has already guided for multiyear growth Advanced Micro Devices' first-quarter results were the new normal, not a blip. That's the analysts' consensus, based on the strategy that it published in November detailing how it plans to lead the $1 trillion compute market.

CEO Dr. Lisa Su said Advanced Micro Devices is "uniquely positioned to lead the next generation of high-performance and AI computing" while telling investors to expect revenues to grow at a compound annual rate of 35% or higher for the next three to five years. It also anticipates at least 60% compound annual revenue growth for its data center segment during that stretch.

The clamor asserting that there's an AI bubble intensifies any time a natural correction in the sector takes place. However, Advanced Micro Devices' recent earnings and its multiyear projections throw cold water on that thesis. Achieving these types of growth targets could certainly propel AMD to a $1 trillion market cap.

Physical AI can be a major tailwind Today, most of Advanced Micro Devices' revenue comes from chips that are going into AI data centers, so investors may be underappreciating its opportunity in physical AI. Humanoid robots, self-driving vehicles, drones, and smart glasses all need chips like the ones it designs.

As the markets for each of those products expand, Advanced Micro Devices' stock may get carried along for the ride. Fortune Business Insights projects a 50.6% compound annual growth rate for the global humanoid robot market through 2034, projecting a $165.1 billion valuation for it at the end of that period, and a 32.3% rate for the autonomous vehicle market.

The companies leading these markets won't want to test experimental chips early in their industries' cycles. Once these industries get hot, there will be a small window of time when companies will compete for large market shares. Expect that the companies that operate in these industries will prefer to rely on established AI chipmakers like Advanced Micro Devices.

Physical AI may be the stock's next catalyst, but the data center segment is still delivering compelling results. Advanced Micro Devices expects that segment to remain hot for multiple years.

AMD stock fell about 6% on Wednesday as a broad selloff in semiconductor shares weighed on the sector.

Despite this, multiple Wall Street firms raised their price targets and reaffirmed their bullish long-term views on the stock.

The broader weakness extended across major chipmakers.

Micron Technology dropped 9%, while Lam Research declined more than 4% and Intel fell 5%.

The VanEck Semiconductor ETF (SMH) also lost nearly 3%, reflecting broad pressure on semiconductor stocks.

Separately, ARK Invest reduced its exposure to AMD by selling 9,742 shares through its ARK Innovation ETF (ARKK), a transaction valued at approximately $5.34 million.

The move continued a recent trend of trimming the firm's AMD holdings.

Despite the decline in AMD shares, several brokerages became more optimistic about the company's long-term prospects, citing expanding artificial intelligence opportunities and improving supply chain conditions.

UBS maintained its Buy rating on AMD and increased its 12-month price target to $700 from $670.

The brokerage said AMD is positioned to win additional customers for its AI accelerators and expand its data center semiconductor business.

“Customer-wise, we have always maintained that Amazon will be a major MI450x customer, and we now believe Anthropic might also be on the customer list,” analyst Timothy Arcuri wrote Wednesday to clients.

“Additionally, we could see AMD partnering with [Cerebras Systems] on a fast inference solution … and maybe announcing a deeper and broader push into custom [Application-Specific Integrated Circuits] for the data center.”

UBS also pointed to easing capacity constraints at Taiwan Semiconductor Manufacturing, which provides advanced packaging services for AMD's AI accelerator chips.

“Overall, our supply chain work is very bullish, with significant upticks in [Chip-on-Wafer-on-Substrate ] allocation for C2027,” Arcuri wrote.

The brokerage also identified AMD's "Advancing AI 2026" event, scheduled for July 22-23 in San Francisco, as a potential catalyst for the stock.

KeyBanc also maintained its Overweight rating while raising its price target to $725 from $530.

The firm cited expanding server CPU production capacity and the expected second-half 2026 ramp of AMD's MI455 AI GPU and Helios platform.

KeyBanc expects AMD's server CPU shipments to increase between 15% and 20% this year.

Bank of America raised its price target to $620 from $550, while TD Cowen increased its forecast to $675.

AI demand and China developments remain in focusAnalyst optimism comes after AMD shares more than doubled over the past three months, climbing 112% through Tuesday as demand for AI infrastructure accelerated.

The company has continued gaining market share in server processors while securing agreements with artificial intelligence companies, including OpenAI.

According to LSEG data, 45 of the 55 analysts covering AMD currently rate the stock either Buy or Strong Buy.

Investor sentiment toward semiconductor stocks also received support from Goldman Sachs data cited by The Kobeissi Letter, which showed hedge funds purchased US semiconductor shares last week at the fastest pace in at least three-and-a-half years.

Semiconductor stocks now represent about 10% of total hedge fund exposure, below the nearly 14% peak recorded in May.

AMD also remained in focus after Reuters reported that Zhuhai Hengqin Yunxiang Zhisheng Network Technology, a subsidiary of Chinese cloud computing company Kingsoft, received US approval to use certain AMD AI chips that compete with Nvidia's H200 products.

China remains an important market for AMD, accounting for more than 22% of the company's fiscal 2025 sales, compared with more than 24% in fiscal 2024.

Advanced Micro Devices (AMD - Free Report) ended the recent trading session at $534.39, demonstrating a -4.21% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.

The chipmaker's stock has climbed by 9.05% in the past month, exceeding the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.

The upcoming earnings release of Advanced Micro Devices will be of great interest to investors. The company's earnings report is expected on August 4, 2026. The company's upcoming EPS is projected at $1.6, signifying a 233.33% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.28 billion, indicating a 46.79% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and a revenue of $48.98 billion, representing changes of +73.14% and +41.39%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. Advanced Micro Devices is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 77.3. Its industry sports an average Forward P/E of 27.79, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.

We can additionally observe that AMD currently boasts a PEG ratio of 1.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.04 at the close of the market yesterday.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Six gigawatts. That is the total AMD Instinct GPU capacity AMD (NASDAQ:AMD | AMD Price Prediction) will deploy for Meta under a partnership disclosed alongside its most recent earnings, with the first 1-gigawatt tranche powered by a custom MI450-based GPU. For scale reference, one gigawatt is roughly the output of a large nuclear reactor. Meta is committing to power-plant-scale AMD silicon, and it is doing so on top of a separate 6-gigawatt OpenAI agreement already on the books.

The total investment in compute for AMD has been rumored to be around $300 billion, though we’ll see what ultimately gets invested over time. Indeed, that’s the big question mark right now in financial markets.

What It Means Hyperscalers do not sign gigawatt-scale accelerator agreements as hedges. They sign them when they intend to build. That reframes AMD from a challenger chasing NVIDIA (NASDAQ:NVDA) into a co-supplier for the largest AI infrastructure buildouts in the world.

The financial fingerprints are already on the tape. Q1 FY2026 Data Center revenue reached $5.775 billion, up 57% year over year, making it the largest and fastest-growing of AMD’s four segments. Total Q1 revenue landed at $10.253 billion, up 37.9% year over year, beating the $9.91 billion consensus by 3.41%. Non-GAAP EPS came in at $1.37 versus $1.29 expected, driven by non-GAAP gross margins which expanded to 55% (up 170 basis points year over year).

Cash generation is scaling with the mix shift. Q1 free cash flow hit $2.566 billion, up 252.96% year over year, on operating cash flow of $2.955 billion. Net income more than doubled to $1.383 billion, up 95.06%.

Market Reaction AMD shares closed at $517.82 on July 2, 2026, down 4.26% on the day. That single-session dip is noise inside a much larger move. AMD is up 141.79% year to date from $214.16 at the end of 2025, and up 273.82% over the past year. For context, over the same twelve months, NVIDIA is up 24.06%.

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Bull Case The AMD bull case rests on a simple observation – the company’s customer roster now looks like NVIDIA’s. AWS, Google Cloud, Microsoft Azure, and Tencent are expanding 5th Gen EPYC-powered instances. Meta is the lead customer for 6th Gen EPYC (Venice and Verano). Oracle Cloud Infrastructure is standing up a 50,000-GPU AI supercluster using AMD Helios rack design in Q3 2026. Samsung is supplying HBM4 memory for the MI455X.

Guidance points to further acceleration. AMD guided Q2 FY2026 revenue to roughly $11.20 billion, implying about 46% year-over-year growth, with non-GAAP gross margin expanding to about 56%. On the Q1 call, CEO Lisa Su said, “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”

The pressure on rivals is visible in relative performance. Intel (NASDAQ:INTC) still carries a negative EPS of -$0.60 on a trailing basis, with quarterly earnings growth down 71.7% year over year. NVIDIA remains the incumbent, but AMD is winning nameplate capacity commitments rather than trial orders. Analyst posture reflects it: 41 buy or strong buy ratings against 10 holds and zero sells, with a consensus target of $508.31.

Bottom Line Six gigawatts from Meta and another six from OpenAI turn AMD’s AI narrative from optionality into contracted backlog. For long-term holders, the anchor to watch is Data Center revenue, which drove the Q1 beat and underpins Q2 guidance of about $11.20 billion in total revenue.

AMD’s valuation is stretched, with a forward P/E of 77 on a stock up 141.79% year to date leaves little room for execution slips. But, the shipments behind those gigawatts are what the next earnings report will need to prove. That is the number that decides whether the pressure on rivals turns into permanent market share.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

In the latest trading session, Advanced Micro Devices (AMD - Free Report) closed at $513.58, marking a -6.97% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.

Coming into today, shares of the chipmaker had gained 12.59% in the past month. In that same time, the Computer and Technology sector gained 0.38%, while the S&P 500 gained 2.14%.

The investment community will be paying close attention to the earnings performance of Advanced Micro Devices in its upcoming release. On that day, Advanced Micro Devices is projected to report earnings of $1.6 per share, which would represent year-over-year growth of 233.33%. Alongside, our most recent consensus estimate is anticipating revenue of $11.27 billion, indicating a 46.67% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.18 per share and revenue of $48.8 billion, indicating changes of +72.18% and +40.87%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Advanced Micro Devices possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Advanced Micro Devices is currently being traded at a Forward P/E ratio of 76.93. Its industry sports an average Forward P/E of 27.52, so one might conclude that Advanced Micro Devices is trading at a premium comparatively.

It's also important to note that AMD currently trades at a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.03 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

There is just no stopping Advanced Micro Devices (AMD +6.74%) right now. Shares of the semiconductor specialist have soared by more than 300% over the past 12 months (as of writing) and recently hit a fresh all-time high. For investors worried they may have missed the boat, here's the good news: There are solid reasons to remain bullish on AMD's outlook, and the stock may still deliver market-beating returns over the medium term. Here is why.

Image source: The Motley Fool.

Accelerating demand AMD's financial results have been strong. In the first quarter, the company's revenue increased by 38% year over year to $10.3 billion. The tech leader's data center segment grew even faster, posting sales of $5.8 billion, up 57% year over year. On the bottom line, AMD's adjusted earnings per share climbed 43% year over year to $1.37. The company did all that while slightly improving its gross and operating margins. The business is booming.

However, the market is even more excited about what's coming. AMD could ride the next wave of the artificial intelligence (AI) industry even more than it did the first. While AMD is a notable player in the GPU (Graphics Processing Unit) market, it is far behind the leader in this niche, Nvidia (NVDA +0.38%). But AMD has a much larger share of the CPU (Central Processing Unit) market. As the AI industry shifts from training to inference, demand for CPUs will soar.

Notably, the rise of agentic AI will be a major tailwind for AMD. AI agents are complex, autonomous systems that can accomplish tasks and work toward goals with limited human involvement. As AMD argues, agentic AI systems require a full stack of CPUs to function properly. As a result, although during the first phase of the AI revolution GPUs were in much higher demand, the CPU-to-GPU ratio will now move closer to 1:1, according to AMD, versus the previous 1:4 or 1:8.

This is great news for AMD, as its EPYC processors are among the market leaders. Meanwhile, the company has gained share in the server CPU market in recent quarters. All of this suggests that AMD's financial results may improve, and it could continue beating the market over the next few years.

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There are some risks Although AMD's prospects look strong, it's worth considering several potential pitfalls. First, AMD is not the only CPU giant that is looking to tap into the soaring demand. The company's longtime rival, Intel (INTC +1.50%), is doing the same. There is also Nvidia which is launching its Vera CPU, specifically to take on the agentic AI revolution. Nvidia may be a formidable competitor, as the Vera CPU is designed as part of an integrated AI computing platform that includes the Rubin GPU.

Since Nvidia remains the runaway leader in GPUs, many companies may choose its CPUs, which are better suited to work with its GPUs. Second, there is always the possibility that the agentic AI boom won't live up to expectations. Nvidia estimates a $200 billion total addressable market for CPUs thanks to agentic AI. AMD projected a compound annual growth rate (CAGR) of more than 35% through 2030, and a total market worth over $120 billion by then. If this demand falls short of expectations, AMD's top-line growth will slow, and the company's shares may decline significantly.

Third, AMD's shares don't exactly look cheap after its run. The company is currently trading at 73.5x forward earnings, compared to an average of 22.2x for information technology stocks. At current levels, the stock may drop sharply at the first sign of trouble. So, should investors still invest in AMD? My view is that it looks attractive even with these caveats. AMD's recent market share gains show that it can thrive despite the competition in an industry that can accommodate multiple winners.

Further, CPU demand has risen so rapidly that AMD's recent 35% CAGR estimate through 2030 is almost double the company's projection six months earlier. Finally, AMD's valuation could become more reasonable as growth accelerates. In fact, the company's forward price/earnings-to-growth ratio -- which accounts for expected earnings growth -- is 1.2. The "undervalued" range typically starts below "1," but AMD's shares don't look drastically overvalued by this metric. And the stock is worth a premium anyway, considering what may lie ahead. In short, AMD's shares are still worth investing in.