Track market-moving stories before they get noisy

AMD (AMD +1.74%) has been a tremendous stock to own in 2026. It has risen about 150% this year, ranking in the top 10 for best-performing S&P 500 (^GSPC -0.52%) stocks. That's an admirable performance, and it has AMD investors believing that it's truly taking ground from primary competitor Nvidia (NVDA -0.59%) in the all-important data center market.

However, I think some of this performance isn't earned, and the stock could be ripe for a pullback. There are several factors that point to this potentially coming, and getting out of the stock before AMD's Nov. 3 earnings report could save investors from some heartache.

Image source: The Motley Fool.

AMD's stock is very expensive At face value, AMD's stock is not cheap, regardless of which valuation measure you use.

AMD PE Ratio (Forward) data by YCharts. PE = price-to-earnings.

At nearly 140 times trailing earnings, it's very pricey for the results it has delivered. Even at 70 times this year's earnings, it's still expensive. Analysts expect a huge year next year, with it trading at 34 times next year's earnings, but that's still just a very expensive stock, especially when compared to Nvidia.

Nvidia is AMD's nemesis in the data center space, and these two have competed against each other for a long time. Nvidia has nearly always been the winner, but from an investment standpoint, that has shifted in 2026. However, I don't think that has really been earned.

AMD's price tag has increased dramatically throughout the year, as evidenced by the chart above. While AMD trades for 34 times next year's earnings, Nvidia trades for 27 times trailing earnings. That's right, Nvidia is cheaper right now than AMD is projected to be at the end of next year if its stock price stays flat.

That's a huge pricing mismatch for companies in the same industry, and I think all of that could come to a head during AMD's third-quarter results.

AMD needs to continue accelerating its growth to justify its price During AMD's second-quarter results, it reported accelerating data center revenue, rising 107% year over year to $6.7 billion. However, overall company revenue accelerated at just a 50% pace to $11.5 billion. That's because AMD's non-data center business units didn't have great quarters, and they are a drag on AMD's overall financial picture.

Contrast that with Nvidia, which delivered 117% data center growth to $89 billion and overall growth of 106% to $96.2 billion in Q2, and it's pretty clear that AMD is still behind Nvidia. There's nothing in those figures that points to AMD being worth a massive premium over Nvidia, and as soon as the market realizes it, one of two things will happen.

AMD Advanced Micro Devices$516.79+$8.86 (+1.74%)

NASDAQ · As of 4:00 PM ET 10/23/26

First, AMD stock could come under heavy selling pressure. As many funds look to take gains from 2026 returns and roll them into new 2027 ideas, AMD could be the first one on the chopping block due to it being a bit pricey. This could ignite a sell-off that returns AMD's valuation to a far more reasonable level. Depending on what is said in its Nov. 3 earnings report, this event could be the kick-start, unless it reports a major increase in data center revenue growth.

Second, Nvidia's stock could rotate back to being the darling of the stock market and see its price rise to a more reasonable valuation level. Regardless, I think it's pretty clear that AMD could have a period of underperformance arriving while Nvidia outperforms.

Taking advantage of AMD's high price tag and Nvidia's low price tag makes a lot of investment sense. Investors should consider rotating out of AMD and into Nvidia, as all indicators point toward that being a major trend during 2027.

Advanced Micro Devices (AMD -8.10%) stock fell 8.1% on Thursday, Oct. 22, as oil prices jumped amid renewed conflict in the Middle East.

The S&P 500 and the Nasdaq Composite lost 1.2% and 2.6%, respectively.

AMD Advanced Micro Devices$507.93-$44.79 (-8.10%)

NASDAQ · As of 4:00 PM ET 10/22/26

Oil adds pressure to an expensive build-outRenewed attacks in Saudi Arabia from Houthi rebels raised fears of further disruptions to oil supplies.

Image source: Getty Images.

Brent Crude, an international benchmark for oil prices, topped $112 a barrel on Thursday, the highest level since May of this year. High energy prices threaten to drive already elevated inflation even higher, and that makes the outlook for borrowing costs more complicated.

The AI infrastructure build-out is incredibly expensive and is more and more fueled by debt as the big tech sees its cash flows diminish. Meta Platforms' Q3 report showed aggressive capital spending continuing, leading to a negative free cash flow (FCF) for the first time since 2012. So while there is no sign of spending slowing down today, the concern is whether the current pace is sustainable if borrowing costs continue to rise and how that will impact AMD's bottom line.

There was another factor at play from Meta's earnings: the company approved a new non-voting share class explicitly to be used to raise capital without diluting CEO Mark Zuckerberg's voting power.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Meta Platforms. The Motley Fool has a disclosure policy.

AMD keeps landing hyperscaler deals and posting numbers that silence skeptics, yet the market still prices it like the underdog. Here is why one investor keeps adding shares and what milestones could force Wall Street to finally reassess.

Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) keeps strengthening its case. Every earnings report adds one more data point investors are tracking.

My thesis: AMD sells the main processor inside the server (EPYC CPUs) and the AI chips (Instinct GPUs), and now it ships both together in a full rack called Helios. AMD can hand a hyperscaler the whole system. The customer list shows it: OpenAI is a core partner to use 6 gigawatts of AMD GPUs, Meta Platforms (NASDAQ:META) plans up to 6 gigawatts, and Anthropic plans up to 2 gigawatts.

Three Data Points Driving AMD’s Momentum First, growth remains strong even as the company gets bigger. Q2 FY2026 revenue reached $11.54 billion, up 50.1% year over year. Data Center revenue rose 107% to $6.718 billion and now accounts for 58% of sales. Management guided Q3 revenue to roughly $13 billion, and CEO Lisa Su told investors, “We now expect data center segment revenue to more than double year-over-year in 2027.”

Second, profits are catching up with sales. Non-GAAP operating margin expanded to 27% from 12% a year earlier, and non-GAAP gross margin reached 56%. Free cash flow for full-year 2025 came in at $5.519 billion, up 129.48%. AMD returns capital through buybacks: the company bought back $1.316 billion of stock in FY2025.

Third, the balance sheet gives AMD room to weather rough patches. Debt-to-equity stands at 0.071, net debt to EBITDA is -0.16 (a net cash position), while interest coverage runs 28.2x. Revenue also beat estimates in every quarter from Q2 2024 through Q1 2026, and again in Q2 2026.

Why AMD Stands Out Against NVIDIA and Intel The obvious alternative is NVIDIA (NASDAQ:NVDA), and on trailing earnings it actually looks cheaper at a P/E of 45 versus AMD’s 208. AMD stands apart because of where each company starts. NVIDIA already carries a $5.36 trillion market cap, about 5.9 times AMD’s $902.3 billion. I see more room to compound from the smaller base, especially with AMD’s EPYC franchise riding agentic AI demand for server CPUs.

The cheaper-looking legacy option is Intel (NASDAQ:INTC), but it carries a negative trailing P/E, net debt to EBITDA of 3.40, and interest coverage of -2.03. Its foundry unit posted a $2.1 billion quarterly operating loss, and its Q2 revenue grew 25.4%, well below the pace AMD delivered.

Risks I Watch Most Closely Valuation is the real threat. At a P/E of 208, AMD needs to execute perfectly, and the market punishes stumbles: shares fell 17.31% after the Q4 2025 report despite a 15.98% EPS beat. Supply matters too. Su admitted, “The server CPU supply chain is tight right now.” Export controls also cost AMD about $440 million in FY2025 charges.

Those risks sit against earnings that keep rising toward the multiple. Management now expects revenue growth “substantially above” its prior target of greater than 35% and expects to exceed its $20 annual EPS target within its strategic timeframe. Su added, “We don’t think we see anything that would give us pause about hitting the targets.”

(We reverse-engineered what the biggest tech winners looked like early, from EPYC-style franchise builds to full-rack AI systems, and turned it into a free playbook here: The Next Nvidia Playbook.)

Catalysts Investors Can’t Afford to Miss Into 2027 Helios shipments were scheduled to begin later in the third quarter of 2026, MI500 follows in 2027, and Su says customer pull is “tracking ahead of our initial forecast.” The stock slipped 10.2% over the past month. Su called this “the early stages of a multiyear AI adoption cycle,” and investors should keep an eye on the stock at every stage of it.

Contact [email protected] for any questions or corrections.

Focused Alpha LLC trimmed its position in Advanced Micro Devices, Inc. (NASDAQ:AMD – Free Report) by 65.3% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 953 shares of the semiconductor manufacturer’s stock after selling 1,791 shares during the quarter. Focused Alpha LLC’s holdings in Advanced Micro Devices were worth $583,000 at the end of the most recent quarter.

Several other institutional investors have also made changes to their positions in the company. Southpoint Capital Advisors LP boosted its holdings in Advanced Micro Devices by 50.0% during the first quarter. Southpoint Capital Advisors LP now owns 900,000 shares of the semiconductor manufacturer’s stock valued at $183,087,000 after purchasing an additional 300,000 shares in the last quarter. Boomfish Wealth Group LLC bought a new stake in shares of Advanced Micro Devices in the 1st quarter valued at approximately $1,193,000. Dimensional Fund Advisors LP raised its holdings in shares of Advanced Micro Devices by 6.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,142,516 shares of the semiconductor manufacturer’s stock worth $1,045,954,000 after buying an additional 291,165 shares in the last quarter. Ferguson Wellman Capital Management Inc. raised its holdings in shares of Advanced Micro Devices by 6,968.7% in the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 140,313 shares of the semiconductor manufacturer’s stock worth $85,995,000 after buying an additional 138,328 shares in the last quarter. Finally, Douglas Lane & Associates LLC raised its holdings in shares of Advanced Micro Devices by 2,748.0% in the 3rd quarter. Douglas Lane & Associates LLC now owns 85,952 shares of the semiconductor manufacturer’s stock worth $52,582,000 after buying an additional 82,934 shares in the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other Advanced Micro Devices news, EVP Paul Grasby sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the transaction, the executive vice president directly owned 117,687 shares of the company’s stock, valued at approximately $60,598,213.17. This trade represents a 11.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Forrest Norrod sold 17,262 shares of the firm’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $540.70, for a total transaction of $9,333,563.40. Following the completion of the transaction, the executive vice president directly owned 353,317 shares in the company, valued at approximately $191,038,501.90. The trade was a 4.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 231,100 shares of company stock valued at $114,867,400 over the last three months. 0.50% of the stock is owned by insiders.

Advanced Micro Devices Stock Performance Shares of NASDAQ:AMD opened at $534.74 on Wednesday. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03. Advanced Micro Devices, Inc. has a 1-year low of $188.22 and a 1-year high of $658.52. The stock has a market capitalization of $872.95 billion, a P/E ratio of 137.47, a P/E/G ratio of 5.52 and a beta of 2.45. The business has a 50-day moving average price of $539.60 and a two-hundred day moving average price of $478.81. Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last issued its earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company had revenue of $11.54 billion for the quarter, compared to analyst estimates of $11.31 billion. During the same quarter last year, the firm earned $0.48 EPS. The company’s revenue for the quarter was up 50.1% on a year-over-year basis. Equities analysts predict that Advanced Micro Devices, Inc. will post 6.50 earnings per share for the current year.

Wall Street Analyst Weigh In Several analysts recently commented on AMD shares. Susquehanna boosted their price target on Advanced Micro Devices from $450.00 to $500.00 and gave the company a “positive” rating in a research note on Thursday, July 30th. UBS Group reiterated an “overweight” rating on shares of Advanced Micro Devices in a research note on Friday, July 24th. Rosenblatt Securities reiterated a “buy” rating and set a $700.00 price objective on shares of Advanced Micro Devices in a research note on Tuesday, September 29th. Benchmark lifted their price objective on Advanced Micro Devices from $485.00 to $685.00 and gave the company a “buy” rating in a report on Wednesday, July 22nd. Finally, Stifel Nicolaus boosted their target price on shares of Advanced Micro Devices from $635.00 to $700.00 and gave the company a “buy” rating in a research note on Monday, October 5th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $603.51.

Read Our Latest Report on Advanced Micro Devices

Key Advanced Micro Devices News Here are the key news stories impacting Advanced Micro Devices this week:

Positive Sentiment: Analyst support remains firm: Wedbush reaffirmed its “Outperform” rating and set a $600 price target. Earlier, TD Cowen maintained a Buy rating with a $675 target, citing potential agentic-AI demand and roughly 70% growth in AMD’s CPU sales next year. Wedbush AMD rating Positive Sentiment: Growth expectations remain elevated: AMD is expected to report approximately $13 billion in third-quarter revenue, up about 41% year over year, ahead of its anticipated November 3 earnings report. The company has exceeded the high end of its guidance in each of the past two quarters. AMD earnings expectations Positive Sentiment: Sector rebound signals: Semiconductor stocks recovered from an early sell-off as AI jitters eased. Falling short interest in leveraged semiconductor funds and increased institutional buying suggest some investors view the recent weakness as a temporary pullback rather than a deterioration in chip demand. Chip stocks recover as AI jitters fade Neutral Sentiment: OpenAI fundraising highlights ongoing AI demand: OpenAI is reportedly seeking roughly $30 billion at a valuation above $1.4 trillion. However, the disclosed financing support centers on Nvidia, offering no direct new business commitment to AMD and underscoring intense competitive pressure in AI infrastructure. OpenAI fundraising and chip stocks Negative Sentiment: Valuation is a major overhang: After rising more than 155% this year, AMD trades at a very high earnings multiple, making the stock vulnerable to profit-taking and any disappointment in AI growth, margins or execution. Analysts have questioned whether the Helios ramp and future earnings can justify the valuation. AMD AI opportunity and valuation Negative Sentiment: AI bubble and financing concerns persist: Reports citing semiconductor declines, leveraged AI financing and uncertainty over data-center spending have revived fears that the AI buildout could slow or produce margin pressure. An executive’s $9.3 million Rule 10b5-1 stock sale adds a modest negative sentiment signal, although he retained a substantial position. Advanced Micro Devices Company Profile (Free Report)

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.

See Also Five stocks we like better than Advanced Micro Devices Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding AMD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Advanced Micro Devices, Inc. (NASDAQ:AMD – Free Report).

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On October 15, Executive Vice President (EVP) Forrest Norrod became responsible for the first Advanced Micro Devices (NASDAQ: AMD) stock insider sale of the month.

Specifically, an October 19 disclosure with the Securities and Exchange Commission (SEC) showed that the EVP dumped 17,262 AMD shares at an average price of $540.7 for a total of $9.33 million.

Receive Signals on SEC-verified Insider Stock Trades

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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).

Notably, this represented Norrod’s second consecutive insider sale executed exactly in the middle of the month. He also offloaded 17,261 shares on September 15, raising just under $8.7 million. 

He also traded AMD stock on August 24, when his 17,261 shares netted $7.9 million. 

Furthermore, these three sales appear to be a part of the recent wave of big tech insider trades that started approximately three months ago with Jeff Bezos’ $346 million Amazon (NASDAQ: AMZN) stock sale.

Indeed, Norrod’s fourth most recent such equity market move took place in May.

Receive Signals on SEC-verified Insider Stock Trades

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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).

Are big stock insiders selling and mass ahead of AI bubble burst?
Elsewhere, while corporate insider trading tends to be a poor gauge of the state of a company due to strict reporting requirements, both the activity related to AMD and the wider sector trend coincided with multiple concerning developments.

Recent weeks brought renewed concerns about the sustainability of the artificial intelligence (AI) boom as financial documents of OpenAI and Anthropic obtained by various journalists showed explosive spending. The latter of the two, for example, recorded an $80 billion loss in the first half of 2026, per a Reuters report from October 20.

Similarly, Oracle (NYSE: ORCL) – a company heavily involved with AI infrastructure – issued a force majeure notice late in September for its New Mexico project and, in mid-October, Microsoft (NASDAQ: MSFT) pulled out of a major data center project in England.

Meanwhile, Amazon was revealed to have purchased more GPUs than it can install, allegedly due to a lack of electricity, and has no clear timeline for when it can put the expensive hardware into service.

The development came weeks after a prominent AI skeptic, Ed Zitron, published his estimate that as much as 50% of the GPUs Microsoft purchased remain unplugged and in warehouses.

Crucially, even the extended estimate of the useful life of such equipment is no higher than six years, raising questions of whether Nvidia (NASDAQ: NVDA) can sustain its revenue growth.

Is Nvidia trying to suppress AMD chip sales?
Finally, Nvidia itself appears to have been vicariously targeting its competitors – most notably Intel (NASDAQ: INTC) and AMD – as it had allegedly barred neoclouds that purchased chips from other companies from entering the GTC Berlin conference.

Receive Signals on SEC-verified Insider Stock Trades

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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).

Under the circumstances, Advanced Micro Devices appears at risk both due to the rising headwinds facing the entire AI sector and from the alleged aggressive activities of its larger peer in the semiconductor industry.

Featured image via Shutterstock

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A Reddit trader claims he rode an AMD position all the way to $16 million, then cashed out completely, convinced the market had finally broken. Now the question is whether he read the signs right or walked away from something…

A trader on Reddit’s r/wallstreetbets says he turned an Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) position into a fortune, then sold all of it. On October 16, 2026, user DubiousChemistry posted “+$16,000,000 on AMD and SOXL. Sold it all,” saying he exited AMD shares bought “last June” along with his Direxion Daily Semiconductor Bull 3X Shares (NYSEARCA:SOXL) trade. He offered to verify the gain with video or brokerage statements. No proof has been posted, so the $16 million figure is still unconfirmed. He explained why he sold:

“I think the market has genuinely cracked under the macro pressure. Not going to open any equity longs for a while.”

Testing the Exit Call Against the Data
AMD rose 361.27% from $114.63 in early June 2025 to $528.75 at Friday’s close. It is up 158% year to date. The stock then fell 9.96% in a week. Jim Cramer described how fast the run happened on Mad Money:

“That’s how AMD could go from $188 in March to $658 by last week. Now we’re finding that maybe these moves were too big, too fast.”

The broader market stayed calm. The VIX peaked at 16.87 on October 14 and closed at 16.46 the next day, which is within its normal range. The day before the post, Taiwan Semiconductor Manufacturing guided fourth-quarter revenue up 58% year over year.

AMD’s Revenue and Earnings Kept Growing
AMD’s second-quarter revenue rose 50.1% to $11.54 billion, ahead of the $11.31 billion consensus. Non-GAAP EPS came in at $1.66, above the $1.61 estimate. Data Center revenue grew 107% to $6.72 billion. CEO Lisa Su said on the call:

“We are still in the early stages of a multi-year AI adoption cycle as deployments grow across a broad set of markets and workloads.”

“We now expect revenue to grow substantially above our prior target of greater than 35%, and we expect to significantly exceed our $20 annual EPS target within our strategic timeframe.”

Third-quarter guidance is about $13 billion. Meta Platforms (NASDAQ:META) plans to deploy up to 6 GW of Instinct GPUs, and Anthropic targets up to 2 GW.

How AMD Stacks Up Against NVIDIA and Intel
Competitor NVIDIA (NASDAQ:NVDA) is up only 17.27% this year and slipped 4.84% last week. Intel (NASDAQ:INTC) gained 156% year to date, then fell 10.59% last week. The selling hit this year’s biggest gainers hardest. On fundamentals, AMD reported its fifth consecutive quarter of record server CPU revenue and took x86 server share from Intel.

Reasons a Seller Might Want Cash
AMD trades at about 199 times earnings. Gaming revenue fell 31%, and supply is constrained. Su said:

“The server CPU supply chain is tight right now, and it has been tight for the first half of the year because much of this demand was unforecasted.”

Reddit sentiment on AMD plummeted from bullish to very bearish. Big institutions disagree. In 13F filings for the second quarter, 11 of 22 tracked funds added shares, while 8 cut.

Did He Sell Too Soon? What to Watch Next
The data shows a stock pulling back after a sharp run while the broader market stayed calm. Helios shipments were scheduled to begin in Q3 2026, so AMD’s third-quarter report will test whether demand is holding up. Riding a mania is one skill; knowing when to walk away is another, and we covered both sides in a free bubble survivor’s handbook. The Reddit member closed with this advice:

“Be grateful for whatever the market gives you, whether that be money or a lesson in mental discipline.”

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Advanced Micro Devices (AMD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this chipmaker have returned -5.6%, compared to the Zacks S&P 500 composite's +1.5% change. During this period, the Zacks Computer - Integrated Systems industry, which Advanced Micro falls in, has lost 3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Advanced Micro is expected to post earnings of $1.93 per share, indicating a change of +60.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.

The consensus earnings estimate of $7.55 for the current fiscal year indicates a year-over-year change of +81.1%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $15.2 indicates a change of +101.4% from what Advanced Micro is expected to report a year ago. Over the past month, the estimate has changed +1.5%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Advanced Micro.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Advanced Micro, the consensus sales estimate for the current quarter of $13.11 billion indicates a year-over-year change of +41.8%. For the current and next fiscal years, $50.61 billion and $85.28 billion estimates indicate +46.1% and +68.5% changes, respectively.

Last Reported Results and Surprise HistoryAdvanced Micro reported revenues of $11.54 billion in the last reported quarter, representing a year-over-year change of +50.1%. EPS of $1.66 for the same period compares with $0.48 a year ago.

Compared to the Zacks Consensus Estimate of $11.32 billion, the reported revenues represent a surprise of +1.87%. The EPS surprise was +3.11%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Advanced Micro is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Advanced Micro. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Advanced Micro Devices (AMD -5.96%) has sold off in recent trading sessions. Amid an artificial intelligence (AI) chip shortage, it has thrived, as the leading AI chip company, Nvidia (NVDA -1.43%), is unable to meet all of the demand.

Admittedly, if the AI industry slowed and Nvidia could serve all interested customers, investors might have less reason to buy from AMD. But in that case, one overlooked factor could have the most effect on investors.

Image source: The Motley Fool.

The supreme threat to AMD stock Right now, the most pressing risk to AMD shareholders is the stock's valuation.

Currently, its price-to-earnings (P/E) ratio stands at 139. That is several times higher than the earnings multiples of Nvidia, Broadcom, and Taiwan Semiconductor. Additionally, AMD's forward P/E ratio of 72 appears to confirm the overvaluation.

CompanyP/E RatioAMD141Nvidia27Broadcom43Taiwan Semiconductor27 Data source: YCharts.

Worse, that valuation is probably based on its future as an AI chip producer. Indeed, if more customers turn back to Nvidia, investor interest in AMD stock could plummet. Moreover, if AMD's P/E ratio falls to Nvidia's current level, the stock could lose close to 80% of its value, a factor that may cause some investors to rethink their positions.

AMD Advanced Micro Devices$528.75-$33.48 (-5.96%)

NASDAQ · As of 4:00 PM ET 10/16/26

AMD the stock vs. AMD the company The silver lining here is that the valuation is more of a threat to the stock than to the company.

For one thing, AMD's data center business, which designs AI chips, accounted for 58% of the company's revenue in the latest quarter. While that is a lot, investors should remember that the company also operates gaming, client, and embedded segments, providing some diversification. In comparison, the data center segment made up almost 93% of Nvidia's revenue, making it close to an all-in play on AI chips.

Secondly, even in a downturn, it would likely be a mistake to write off AMD's AI chips. For one, many customers have built systems around them, which will likely make them reluctant to switch away from AMD. Also, agentic AI, a technology that can operate with minimal supervision, could propel the chipmaker to new heights under the right circumstances.

Additionally, AMD's AI accelerators have typically sold at lower prices than Nvidia's. This probably means that even in a plausible worst-case scenario, it will likely maintain a following among more budget-conscious customers.

Moving forward with AMD stock In the end, AMD investors should worry more about the chip stock's valuation than about the future of its AI chip business.

The stock's high valuation and a desire for diversification motivated me to reduce my AMD holdings. However, I am also a long-term investor and chose to maintain a substantial position in AMD stock. Despite my concerns about valuation and the possibility of an AI bust, I believe the need for chips will likely increase in the long term.

The company has established itself as a major player in the industries in which it operates. Over time, I expect its growth to catch up to its valuation.

AMD's data center revenue just doubled and gigawatt-scale AI deals keep piling up, but a trailing P/E of 228 and a beta above 2.4 mean the stock can hurt as fast as it can reward. Here is what a disciplined…

Putting $1,000 a month into Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) for five years means committing $60,000 of your own money by 2031. AMD shares trade at $581.71. They are up 168.79% over the past year and down 10.43% over the past week.

With the stock moving that hard in both directions, buying a fixed dollar amount every month is one way to model a position.

What Your $60,000 Could Turn Into by 2031
Under the middle case, $1,000 a month in AMD could be worth about $65,677.07 by 2031. That is a total return of 9.46% on the $60,000 you put in. Behind that figure is a modeled five-year base-case share price of $655.96, measured from a model starting price of $591.22. That works out to a 10.95% price gain, or 2.1% a year.

How the dollar figures were built: the model gives a price for AMD at each annual point over five years. Each year’s $12,000 of monthly contributions is treated as if it were bought at that year’s point price, and all the shares are then valued at the 2031 target. It serves as a simplified annual estimate.

Bull, Base and Bear: Where Your Monthly Buys Could Land

Case
2031 Target Price
Share Price Return
Total Return on $60,000 Contributed
Ending Value

Bull
$918.51
55.36%
28.67%
$77,202.14

Base
$655.96
10.95%
9.46%
$65,677.07

Bear
$438.42
-25.84%
-6.89%
$55,867.44

The bear row shows the trade-off in monthly buying. If the stock falls, your later purchases pick up shares at lower prices, so the loss on your position is -6.89% while the share price itself falls 25.84%. The same practice reduces your gains in the bull case: you keep buying as the price rises toward $918.51.

Its confidence score is 0.9, which it labels as high. Over the next year it projects AMD near fair value (-1.2%), with a one-year base target of $583.84.

Analysts are more upbeat. The consensus analyst target is $636.21, and analysts give 5 strong-buy ratings, 39 buy ratings, 11 hold ratings and 0 sell ratings.

Three Growth Engines Behind the 2031 Targets
Data Center Revenue More Than Doubled
Second-quarter revenue rose 50.1% from a year earlier to $11.54B. Data Center revenue rises 107% to $6.72B, or 58% of total sales. Non-GAAP EPS of $1.66 came in ahead of the $1.6107 estimate. Management is guiding third-quarter revenue to about $13B.

Gigawatt-Scale AI Customers
Anthropic agreed to deploy up to 2 GW of MI450 Series GPUs in AMD’s Helios racks. That adds to deals with OpenAI for 6 GW and Meta Platforms (NASDAQ:META) for up to 6 GW. CEO Lisa Su said Helios shipments ramp “much more substantial in Q4”. She also said revenue per gigawatt is in the “double digit billions”.

All of that gigawatt-scale expansion has to be powered, cooled, and connected by someone other than the chipmaker, which is the whole point of a free report we put together on seven AI infrastructure suppliers: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).

Raised Long-Term Targets
Su told analysts: “We expect to significantly exceed our $20 annual EPS target within our strategic timeframe.” The model’s forward EPS input is $12.4414, which puts AMD at a forward P/E of about 48.

Risks That Could Shrink Your Ending Balance
Valuation is the biggest risk. AMD trades at a trailing P/E of 228 and 147.61 times free cash flow, which leaves little room for a stumble. The stock’s beta is 2.454, meaning it tends to move more than twice as much as the broader market. Shares also fell after recent AI product announcements failed to re-energize investors.

U.S. export controls on AI chips sold to China cost AMD about $440M in inventory and related charges in FY25. AMD also relies on Taiwan Semiconductor Manufacturing (NYSE:TSM) to make its chips and on outside suppliers for memory and substrates.

Su has acknowledged that “the server CPU supply chain is tight right now.” Gaming revenue fell 31% in the latest quarter, and tariffs and competition from larger GPU rivals remain ongoing pressures.

Your $1,000-a-Month Plan by the Numbers
Across the three case, $60,000 invested in AMD a month at a time could be worth anywhere from $55,867.44 to $77,202.14 by 2031. The middle case lands near $65,677.07. These are modeled case with no guaranteed outcome.

This article is a projection for informational purposes only. Keep an eye on the Helios ramp and data center growth in each earnings report, since they will show which case AMD is actually tracking.

Contact [email protected] for any questions or corrections.

Everyone is watching AMD's GPU ramp, but a quieter force inside the data center may be the one that actually drives the stock through 2027. Here is why most investors have their eyes on the wrong product line.

The 24/7 Wall St. price target for AMD (NASDAQ:AMD | AMD Price Prediction) is $583.84. The stock currently trades at $591.22, so the target means -1.25% downside. That makes a hold rating with high confidence.

24/7 Wall St. Price Target Summary

Metric
Value

Current Price
$591.22

Price Target from 24/7 Wall St.
$583.84

Upside/Downside
-1.25%

Recommendation
HOLD

Confidence Level
90%

AMD shares are up 176.81% year to date, and they now sit close to fair value. The catalyst I see the market underrating is the server CPU. EPYC Venice could carry more of AMD’s 2027 story than most investors expect, working alongside the Helios GPU ramp that gets most of the attention.

Why We Could Be Wrong
The 24/7 Wall St. price target sits just below where AMD trades today. Management says demand for Helios is tracking ahead of its first forecasts, and server CPU growth could come in above guidance as supply eases. Either one could show our model too conservative. We treat this target as one datapoint among many, and the full bull case follows below.

A Huge 2026 Rally Hits a Cooling Week
AMD fell 6.16% over the past week but is still up 14.86% over the past month. Its 52-week range runs from $188.22 to $658.52. On Monday, NVIDIA (NASDAQ:NVDA) also slipped: AMD and NVIDIA both fell after new AI announcements failed to re-energize investors.

Fundamentals have kept pace with the stock. Q2 revenue rose 50.1% to $11.54 billion, beating the $11.31 billion estimate. Non-GAAP EPS of $1.66 exceeded the $1.61 estimate. Data Center revenue rose 107% to $6.72 billion. For Q3, management guided to about $13 billion in revenue.

Server CPUs Could Drive AMD Toward $696
The bull case reaches $696.27. EPYC is the driver I think investors underestimate. AMD just posted its fifth consecutive quarter of record server CPU revenue. It expects server revenue to grow more than 80% in the second half of 2026 and more than 70% in 2027.

CEO Lisa Su said “Customer demand for Venice is stronger than for any prior EPYC generation.” AMD expects the server CPU market to reach approximately $220 billion by 2030, and it views agentic AI as the largest piece of that market.

Helios adds to that. Anthropic plans to deploy up to two gigawatts of MI450 series GPUs, joining earlier deals with OpenAI and Meta Platforms (NASDAQ:META). Management expects Data Center revenue to more than double year-over-year in 2027.

That expansion has to be powered, cooled, and networked by someone, and we pulled together seven suppliers riding the same wave in a free AI infrastructure report. Wall Street mostly agrees on AMD itself. Analysts count 5 Strong Buy, 39 Buy and 11 Hold ratings, and none rate it a Sell.

What Could Drag AMD to $459
The bear case is $459.51. With a trailing P/E near 224, AMD has little room for a misstep on Helios, and management admits yields on the complex system will take time to improve.

Server CPU supply has been tight, Gaming revenue fell 31%, and export controls caused about $440 million in net charges in fiscal 2025. Free cash flow fell 9.89%. The bull response is that this reflects capex jumping 186.52% to meet data center demand.

How AMD Compares to NVIDIA and Intel
NVIDIA is the AI GPU leader that Helios is built to compete with. NVIDIA trades at a far lower trailing P/E with higher margins and faster Data Center growth than AMD. That gap makes our target look reasonable for AMD.

Intel (NASDAQ:INTC) is the x86 server rival that EPYC is taking share from. Intel posted an $11.033 billion GAAP net loss linked to a CHIPS Act escrow charge. AMD’s faster growth and wider margins support its premium over Intel.

Company
Trailing P/E
Non-GAAP Gross Margin
Data Center Growth

AMD
224
56%
107%

NVIDIA
46
75.0%
117%

Intel
N/A (loss)
~42.0% (Q3 guide)
59%

AMD Price Prediction 2026-2030
The 24/7 Wall St. price target stands at $583.84, a hold with 90% confidence. The forward-earnings valuation is the deciding factor.

The outlook would improve if Venice and Helios push Data Center growth past the doubling management expects in 2027. The outlook would weaken if Helios yields or supply limits delay the Q4 step-up. At this price, most of the good news looks priced in.

If AMD’s current growth and market conditions hold, the model projects the stock could trade at these levels.

Year
Price Target from 24/7 Wall St.

2026
$583.84

2027
$596.54

2028
$597.54

2029
$592.10

2030
$619.79

The projections rest on AMD continuing to execute on its current strategy. A faster server CPU ramp, or new export restrictions, could move the stock well above or below these figures.

Contact [email protected] for any questions or corrections.

SummaryAdvanced Micro Devices, Inc.'s recent pullback represents a compelling buying opportunity as accelerating agentic AI adoption reinforces structural demand for its server CPUs and accelerators.Meanwhile, TSMC's Q3 earnings outperformance and accelerating N2 production ramp suggest strengthening supply visibility for AMD's higher-value next-generation data center portfolio.This supports expanding EPYC Venice and Instinct MI455X deployments, corroborating a favorable mix shift that underpins incremental margin expansion and potential earnings upside.The dynamics send a clear signal that AMD's recent volatility underappreciates its improving ability to convert robust AI demand into incremental monetization, supporting a re-rate higher from current levels. Getty Images

Advanced Micro Devices, Inc. (AMD) surged more than 42% through September, supported by strengthening investor confidence in the company’s ability to capitalize on the accelerating agentic shift, before paring some gains in recent weeks in tandem with broader market

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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.

nVent will add liquid and air cooling solution to AMD rack-scale AI platform to create a fully integrated system for large AI workloads

The companies will unveil a first look of the open-source solution at the OCP Global Summit

LONDON, Oct. 13, 2026 (GLOBE NEWSWIRE) -- nVent (NYSE: NVT) and AMD today announced a collaboration to bring rack-level cooling to the AMD Helios™ Rackscale solution. The joint effort pairs nVent's data center cooling expertise with AMD Helios to help operators deploy AI capacity at scale. This will add nVent rear door heat exchanger (RDHx) as part of the fully integrated AMD Helios AI infrastructure platform that includes AMD Instinct™ graphical processing units (GPUs), EPYC™ central processing units (CPUs), Pensando™ networking technologies, and the AMD ROCm™ open software stack. nVent will unveil a first look at the OCP Global Summit in San Jose, CA, October 12 to 16, 2026.

“This collaboration brings nVent's cooling expertise to one of the leading AI platforms in the industry,” said Eric Osborn, vice president and general manager of Data Solutions, Cooling & Power at nVent. “We are designing for the platforms our customers are building on, and working closely with AMD is how we make sure the fit is right.”

nVent's DC-powered RDHx is an industry-first dual rear door, designed for the double-wide AMD Helios rack. It captures the heat that direct-to-chip liquid cooling leaves behind and returns cooled air to the space, keeping the rack effectively room-neutral. It is fully-integrated with the AMD Helios platform and offers intelligent cooling with no wasted watts, integrated air temperature, humidity sensors and differential pressure fan speed control. Additionally, its DC power matches how next-generation AI racks are powered. The result is a cooling solution that allows customers to start with a single rack and scale larger deployments over time.

“The rack, not any single component within it, has now become the unit of deployment; and compute, networking, software, power and cooling must operate as one system,” said Ravi Pendekanti, corporate vice president, Data Center Solutions Business Group, AMD. “AMD Helios brings those elements together in an open, standards-based architecture designed to help customers scale from a single rack to large AI factories with long-term flexibility. Our collaboration with nVent expands the cooling options available for AMD Helios, helping operators bring high-density AI infrastructure online across a broader range of data center environments.”

At the OCP Global Summit, nVent and AMD will show the RDHx for the first time on an Open Rack Wide (ORW) rack alongside the manifolds, bus bars, and power shelves of a Helios deployment, giving operators a first look at how the companies' work comes together. Visit Booth #A9 at OCP for more information.

About nVent
nVent is a leading global provider of electrical connection and protection solutions. We believe our inventive electrical solutions enable safer systems and ensure a more secure world. We design, manufacture, market, install and service high-performance products and solutions that connect and protect some of the world's most sensitive equipment, buildings and critical processes. We offer a comprehensive range of systems protection and electrical connections solutions across industry-leading brands that are recognized globally for quality, reliability and innovation. Our principal office is in London and our management office in the United States is in Minneapolis. Our robust portfolio of leading electrical product brands dates back more than 100 years and includes nVent CADDY, ERICO, HOFFMAN, ILSCO, SCHROFF and TRACHTE. Learn more at www.nvent.com.

nVent, CADDY, ERICO, HOFFMAN, ILSCO, SCHROFF and TRACHTE are trademarks owned or licensed by nVent Services GmbH or its affiliates.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS 
This press release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “forecasts,” “should,” “would,” “could,” “positioned,” “strategy,” “future,” “are confident,” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Among these factors are adverse effects on our business operations or financial results, including the overall global economic and business conditions impacting our business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions, including the Maverick Power acquisition; competition and pricing pressures in the markets we serve, including the impacts of tariffs; volatility in currency exchange rates, interest rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; inability to mitigate material and other cost inflation; risks related to the availability of, and cost inflation in, supply chain inputs, including labor, raw materials, commodities, packaging and transportation; increased risks associated with operating foreign businesses; risks associated with or arising from military conflicts; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date of this press release. nVent assumes no obligation, and disclaims any obligation, to update the information contained in this press release. 

Investor Contact
Tony Riter 
Vice President, Investor Relations 
nVent 
763.204.7750 
[email protected]

Media Contact
Kevin H. King
Vice President, Global Communications
nVent
763.291.0526
[email protected]

Scaleway will build an AI supercomputer in Sweden, its first outside France, running on AI chips ​from AMD (AMD.O), the French cloud company said on Tuesday during its ‌annual AI conference in Paris.

Scaleway said the machine would be the first AMD-based AI supercomputer for commercial use in Europe, open to startups, AI companies and businesses across the ​continent. The system will run on AMD Instinct MI355X, the chipmaker's ​answer to Nvidia's (NVDA.O) Blackwell line which powers most AI computing globally.

AMD ⁠chips already power supercomputers used for European research, including LUMI in Finland. US ​cloud firms including Oracle (ORCL.N) and Vultr also rent AMD chips to European customers.

"Scaleway ​is expanding the choice of AI infrastructure available to customers across Europe, through AMD Instinct GPUs and our open ROCm software ecosystem," said Stephanie Dismore, AMD's senior vice president for ​EMEA.

AI developers use specific software ecosystems to code. AMD's ROCm is open-source ​and runs the widely used AI programming tools that also work on Nvidia chips, while ‌rival ⁠Nvidia's equivalent, CUDA, is proprietary and runs only on Nvidia chips, locking developed applications to the hardware.

Scaleway said it picked Sweden as a location due to its largely low-carbon electricity and its AI sector. It entered the Swedish ​market in May, when ​it signed ⁠a deal with telecom operator Tele2 (TEL2b.ST) to sell its cloud and AI services there.

Tele2's business-to-business head Stefan Trampus said the ​supercomputer "sends a clear signal" on Sweden's attractiveness for AI ​infrastructure.

Supercomputer builder ⁠Bull, which already collaborates with Scaleway as part of the AION consortium, told Reuters the contract was a positive step in its strategic direction, while adding the project ⁠would "enhance ​Europe's AI capabilities".

The machine will be assembled and ​maintained by Bull, with servers from Giga Computing, networking from HPE (HPE.N), storage from VAST Data and ​cooling liquid from Motul.

AMD has surged 184% this year and now trades above $600, but the real question is whether its Helios chip ramp can grow into that valuation before the market loses patience with a 155x trailing multiple.

AMD (NASDAQ:AMD | AMD Price Prediction) trades at $608.10 after pushing past $600. The price is a waypoint for AMD, and investors should not read it as a ceiling, since the stock is up 183.95% year to date and earnings estimates keep rising behind it.

AMD designs CPUs, GPUs and AI accelerators. It competes with NVIDIA (NASDAQ:NVDA) in AI chips. Data Center revenue reached $6.72 billion last quarter, up 107% year over year and now 58% of total sales. The stock traded at $222.50 when AMD reported Q4 FY2025 and at $494.60 when it reported Q2 FY2026.

Gigawatt Deals Lock In a Multi-Year AI Runway AMD guided Q3 revenue to about $13B +/- $300M, which works out to around 41% growth. Behind that guide sit multi-gigawatt customer commitments: OpenAI at 6 gigawatts, Meta Platforms (NASDAQ:META) at up to 6 GW and Anthropic at up to 2 GW. Management expects Data Center revenue to “more than double year-over-year in 2027”.

Analysts have raised their numbers to match. The 2027 EPS consensus is now $15.7219, up from $13.1993 90 days ago. That puts the stock near 39x 2027 earnings, with a PEG ratio of 0.626.

A 155x Trailing Multiple Punishes Any Stumble On trailing numbers, AMD’s earnings multiple stands at 155 and its free cash flow multiple is 148. Free cash flow fell 9.89% in Q2 as capex rose 186.52%. Gaming revenue dropped 31%, and management expects PC demand to soften as memory costs rise.

Export controls already cost AMD an $800M MI308 inventory charge. NVIDIA still dominates AI accelerators, and the gigawatt deals are future installations that have not yet become booked revenue. With a beta of 2.454, the stock fell 4.07% last week while the S&P 500 rose 1.16%.

Helios Yields Will Set the Next Leg Management called Helios “highly complex” and expects yields to improve over the first few quarters of the ramp. AI GPUs also carry gross margins “slightly below corporate average,” which puts the 56% margin guide at risk. Forecasts for 2027 revenue run from about $61 billion to $118 billion, and Q3 and Q4 results should help narrow that range.

Stock Outruns Wall Street and the S&P 500 The consensus target of $636.21 points to a 4.6% gain from $608.10. Targets have fell behind this rally. Among 55 analysts:

Strong Buy: 5 Buy: 39 Hold: 11 Sell: 0 AMD is up 183.95% year to date, against 14.17% for the S&P 500. Over one year it gained 161.11%, versus a 16% rise for the index. Shares sit 7.7% below the $658.52 high and well above the 50-day average of $528.92. The forward P/E is 40.

Can 2027 Earnings Catch Up to AMD’s $600 Price? At $608.10, AMD’s valuation depends on executing the Helios ramp.

The path higher runs through the Helios ramp. Management said “Q4 is a step up” and “Q1 will be a further step up.” Anthropic’s first gigawatt is scheduled to start deploying in the first half of 2027. Each quarter that confirms the ramp should pull 2027 estimates higher and bring the multiple down.

Chair and CEO Lisa Su said, “We are still in the early stages of a multi-year AI adoption cycle.” AMD also expects to “significantly exceed our $20 annual EPS target.” If it gets there, the multiple on future earnings would contract (we reverse-engineered the traits the biggest chip winners shared before their runs in a free playbook here: The Next Nvidia Playbook).

The thesis breaks if Helios shipments slip, if gross margin falls below 56%, or if new export rules hit Instinct sales. Hyperscaler capex cuts would also force a review.

At 39x 2027 earnings, AMD’s run past $600 depends on Helios delivering that growth.

Contact [email protected] for any questions or corrections.

A $10,000 bet on AMD in 2011 grew into more than $1.2 million, but the AI boom that sent shares soaring 211% in a single year raises a harder question: how much runway is left in a stock already priced…

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Someone who put $10,000 into Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) at the end of 2011, when shares closed at $5.40, would have about $1,202,629 at the most recent close of $649.42.

The last 10 years alone produced a 9,314.81% gain, enough to turn $10,000 into $941,481. AMD now trades at $656.10, and the AI data center buildout is the main story behind it. So what could $10,000 invested today be worth by 2031?

What $10,000 Could Become by 2031 In the base case, a $10,000 investment in AMD could be worth about $10,129 by 2031, a total return of 1.29%. That rests on a projected five-year share price target of $664.58, which works out to an annualized return of just 0.26%. The model’s confidence level is 0.9, which it rates as high.

The modest target shows how much good news is already in the price. Shares are up 211.96% over the past year and 196.74% so far this year. The stock also trades at 53x forward earnings.

The model’s forward P/E valuation comes out to just $458.27 per share, and that input gets the biggest weight in the average. On top of that, the model notes “slight overvaluation (-5.2%)” at today’s price.

Bull, Base and Bear Scenarios for Your $10,000 Scenario (2031) Target Price Total Return $10,000 Becomes Bull $826.94 26.04% $12,604 Base $664.58 1.29% $10,129 Bear $451.19 -31.23% $6,877 Over one year (to 2027), the model projects a narrower range. The bull case is $692.43 (5.54%, or $10,554). The base case is $622.15 (-5.17%, or $9,483). The bear case is $486.32 (-25.88%, or $7,412).

Wall Street sits close to the model. The consensus price target is $629.21, with 5 Strong Buy, 39 Buy and 11 Hold ratings and no Sells. Analysts are bullish on the business, but their average target is still below the current share price.

Growth Drivers That Could Push AMD Toward the Bull Case Data Center Revenue Is Accelerating Second-quarter revenue rose 50.1% to $11.54 billion, and Data Center revenue jumped 107% to $6.72 billion. Third-quarter guidance calls for about $13 billion in revenue. Management said it “now expect[s] data center segment revenue to more than double year-over-year in 2027.”

Gigawatt-Scale AI Customers OpenAI has a preferred-partner deal covering 6 GW of AMD GPUs. Anthropic plans to deploy up to two gigawatts of MI450 GPUs in AMD’s Helios racks. Helios begins shipping in the third quarter of 2026, and the chief executive said customer demand is “tracking ahead of our initial forecasts.”

Earnings Estimates Keep Climbing The consensus EPS estimate for 2027 has risen to $15.5833, up from $13.1770 90 days ago. AMD also says it expects to significantly exceed its $20 annual EPS target within its strategic period. If the company delivers on that, today’s valuation would look much cheaper, and the bull case becomes more realistic.

Risks That Could Shrink Your Stake With a beta of 2.454, AMD tends to move about 2.5 times as much as the overall market, in both directions. Under the five-year bear case, $10,000 drops to $6,877. Several things could get it there:

Export controls: Restrictions on MI308 sales to China cost AMD about $440 million in charges in fiscal 2025. Competition: NVIDIA (NASDAQ:NVDA) still leads the AI accelerator market. Supply and execution: AMD depends on Taiwan Semiconductor Manufacturing (NYSE:TSM) to make its chips and has to secure enough HBM memory, and management expects Helios yields to improve only over the next few quarters. Weak spots: Gaming revenue fell 31%, and a small number of very large AI customers account for much of the growth. Wide estimate range: Analyst EPS forecasts for 2027 run from $9.60 to $20.25. Can AMD Repeat Its Million-Dollar Run? The model doesn’t see a repeat. By 2031, it puts a $10,000 AMD stake anywhere from $6,877 in the bear case to $12,604 in the bull case, with a base case of $10,129.

AMD is now a company worth about $1.06 trillion, and growing from that size is far harder than growing from a $5 stock. These figures are model scenarios. The numbers to keep an eye on are Helios shipments and Data Center growth in 2027. This projection is for informational purposes only.

Contact [email protected] for any questions or corrections.

BNP Paribas just slapped a price target on AMD that towers over Wall Street consensus, but reaching it would demand a sequence of wins that our model says the stock has not yet earned.

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AMD (NASDAQ:AMD | AMD Price Prediction) received a $960 price target from BNP Paribas, well above Wall Street consensus. Our 24/7 Wall St. price target is $622.15 with a hold rating. Reaching BNP’s number would require about 46% upside from current levels.

Metric Value Current Price $656.10 24/7 Wall St. Price Target $622.15 Upside/Downside -5.17% Recommendation HOLD Confidence Level 90% Our model has high confidence that AMD trades close to fair value after a huge run. The consensus analyst target of $636.21 also sits below the share price. Even so, the Street is overwhelmingly positive, with 5 Strong Buy, 39 Buy and 11 Hold ratings and no Sells.

Why We Could Be Wrong Our target sits below today’s price, but AMD has real catalysts. Management says Helios demand is “tracking ahead of our initial forecasts,” and expects to “significantly exceed our $20 annual EPS target.” The bull case below explains how AMD could outperform.

A 197% Year-to-Date Run Powered by Data Center Doubling AMD shares have climbed 197.2% year-to-date, up 33.28% over the past month. The 52-week range runs from $188.22 to $658.52.

Second-quarter revenue rose 50.11% to $11.536 billion, beating estimates. Non-GAAP EPS of $1.66 topped the $1.6107 consensus. Data Center revenue jumped 107%. AMD agreed to buy World Labs in an $8.2 billion all-stock deal, and Hewlett Packard Enterprise (NYSE:HPE) landed a $1.2 billion Helios order from Vultr.

What It Would Take to Hit $960 At $960, AMD would trade at about 78x forward EPS and 62x the 2027 consensus of $15.5833. Earnings of $20 per share would bring that multiple to 48x. AMD needs to reach its long-term EPS goal while investors maintain today’s premium.

BNP analyst Karl Ackerman (Outperform) points to Helios, backed by 14 gigawatts of commitments from OpenAI, Meta Platforms (NASDAQ:META) and Anthropic. He believes AMD can win at least 8% of the GPU market by 2030.

Management expects Data Center revenue to “more than double year-over-year in 2027.” Our 12-month bull case is $692.43 (the traits that showed up in prior monster tech runs are the same ones we cataloged in a free playbook here: The Next Nvidia Playbook).

Where the $486 Bear Case Comes From AMD trades at 245x trailing earnings, so even a short Helios delay could pressure the stock. Gaming revenue fell 31%, and export controls and HBM supply remain risks. Free cash flow fell 9.89%, though capex jumped 186.52% to build capacity. Our bear case is $486.32.

How AMD Compares to NVIDIA and Intel Company Trailing P/E Gross Margin Latest Revenue Growth AMD 245 49.52% 50.11% NVIDIA 48 71.1% 105.85% Intel Negative 34.8% 25.42% NVIDIA (NASDAQ:NVDA) is AMD’s direct AI accelerator rival. It grew faster last quarter, earns wider margins and trades at a much lower trailing multiple. Next to NVIDIA, $960 looks aggressive.

Intel (NASDAQ:INTC) is AMD’s x86 server CPU rival. Its Data Center and AI revenue rose 59%, but Intel is unprofitable on a trailing basis. AMD’s wider margin explains why investors pay a premium over Intel.

AMD Price Prediction 2026-2030 I’m sticking with a 24/7 Wall St. price target of $622.15 and a hold rating at 90% confidence, driven mainly by valuation. I’d turn more constructive if Q3 revenue tops $13 billion guidance and Helios shipments accelerate in Q4. Our model’s highest five-year scenario, $826.94, still falls short of $960.

The table below shows where our model projects AMD could trade if current growth trends and market conditions hold.

Year Bear Base Bull 2026 $656.10 $656.10 $656.10 2027 $519.86 $625.02 $700.93 2028 $458.99 $618.22 $744.86 2029 $426.38 $645.63 $727.59 2030 $432.04 $666.73 $782.57 Contact [email protected] for any questions or corrections.

AMD has surged past every analyst price target on the back of gigawatt-scale AI chip commitments, but the product that justifies this valuation has not yet shipped a single unit at scale.

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AMD (NASDAQ:AMD | AMD Price Prediction) trades at $649.42. The stock is up 203.24% year to date and now trades above the average Wall Street price target. That leaves investors considering record growth against a very demanding multiple.

AMD designs CPUs and GPUs. It competes with NVIDIA (NASDAQ:NVDA) in AI accelerators and with Intel (NASDAQ:INTC) in server processors. Last quarter, revenue rose 50.11% to $11.54 billion, beating the $11.31 billion estimate. Data Center revenue climbed 107% and now makes up 58% of sales.

Gigawatt Deals Could Make Today’s Multiple Look Cheap Bulls look past trailing earnings. AMD trades at a forward P/E of about 40, and its PEG ratio of 0.626 is below 1, which suggests growth is exceeding price. The 2027 EPS consensus has increased to $15.5833 from $13.1770 90 days ago.

The customer list is strong. OpenAI has committed to 6 gigawatts of AMD GPUs, Meta Platforms (NASDAQ:META) to up to 6 GW, and Anthropic to up to 2 GW of MI450 chips in Helios racks. Management says Helios demand is “tracking ahead of our initial forecasts” and expects Data Center revenue to “more than double year-over-year in 2027.”

A Triple-Digit Trailing Multiple Leaves No Room for a Helios Stumble Bears point to a trailing P/E of about 161, a price-to-free-cash-flow ratio of 158 and a free cash flow yield of just 0.63%. Free cash flow fell 9.89% last quarter as capital spending jumped 186.52%.

Gaming revenue dropped 31%, and export controls cost about $440 million in fiscal 2025. Helios is complex, and management expects yields to improve only over the first few quarters of the ramp. With a beta of 2.454, any delay would hit a stock already priced for perfect execution.

Helios Shipments Will Decide Which Side Wins AMD guided third-quarter revenue to about $13 billion, with a non-GAAP gross margin near 56%. Helios starts contributing at the end of the third quarter, with a more substantial ramp in the fourth quarter. Anthropic’s first gigawatt begins in the first half of 2027.

Strong Helios revenue and increased 2027 estimates would support the optimistic thesis. Yield problems or customer delays tied to power and land preparation would support the pessimistic thesis. (We reverse-engineered what the biggest tech winners looked like early in a free report you can grab here.)

Shares Have Run Past the Average Analyst Target At $649.42, AMD sits above the consensus target of $629.21, which implies 3.1% downside. Price targets are only one data point, and these have trailed the rally. Of 55 analysts:

Strong Buy: 5 Buy: 39 Hold: 11 Sell: 0 AMD is up 218.8% over the past year, compared with 16.01% for the S&P 500. Over the past month it rose 35.98%, and the index added 1.16%. The stock trades near its 52-week high of $658.52 and well above its 50-day average of $513.53.

Helios Must Prove Itself Before AMD’s Multiple Makes Sense At $649.42, AMD trades on expectations that Helios still has to confirm.

Operations are running smoothly. The share price, however, already reflects about 42 times 2027 consensus EPS, so much of the expected growth is priced in. The optimistic thesis needs fourth-quarter Helios revenue to arrive on schedule and 2027 estimates to keep increased. The pessimistic scenario would need yield setbacks, slipping deployments, or free cash flow that keeps falling as capital spending grows.

Timing matters here. The stock sits above its consensus target after a one-month surge. A decline is possible if the next earnings report only matches guidance. The gigawatt-scale order pipeline, however, is still growing.

Over the next two quarters, keep an eye on Data Center growth, gross margin holding near 56%, Helios customer diversity, and capital spending versus free cash flow. AMD’s growth is real, and at this price the valuation depends on Helios showing up in the numbers.

Contact [email protected] for any questions or corrections.

Central Pacific Bank Trust Division raised its holdings in Advanced Micro Devices, Inc. (NASDAQ:AMD – Free Report) by 44.6% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 15,328 shares of the semiconductor manufacturer’s stock after acquiring an additional 4,727 shares during the period. Advanced Micro Devices comprises about 1.0% of Central Pacific Bank Trust Division’s investment portfolio, making the stock its 17th largest holding. Central Pacific Bank Trust Division’s holdings in Advanced Micro Devices were worth $9,377,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Rosenberg Matthew Hamilton boosted its holdings in shares of Advanced Micro Devices by 2.9% during the 3rd quarter. Rosenberg Matthew Hamilton now owns 2,253 shares of the semiconductor manufacturer’s stock worth $1,378,000 after buying an additional 64 shares during the period. Box Hill Private Wealth LLC raised its stake in Advanced Micro Devices by 2.5% in the 3rd quarter. Box Hill Private Wealth LLC now owns 794 shares of the semiconductor manufacturer’s stock worth $486,000 after purchasing an additional 19 shares in the last quarter. Park National Corp OH increased its holdings in shares of Advanced Micro Devices by 1.9% during the third quarter. Park National Corp OH now owns 2,305 shares of the semiconductor manufacturer’s stock worth $1,410,000 after purchasing an additional 42 shares during the period. Baker Tilly Wealth Management LLC increased its stake in Advanced Micro Devices by 27.4% during the 3rd quarter. Baker Tilly Wealth Management LLC now owns 2,162 shares of the semiconductor manufacturer’s stock worth $1,467,000 after acquiring an additional 465 shares during the period. Finally, Ferguson Wellman Capital Management Inc. raised its holdings in Advanced Micro Devices by 6,968.7% in the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 140,313 shares of the semiconductor manufacturer’s stock valued at $85,995,000 after acquiring an additional 138,328 shares in the last quarter. 71.34% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Advanced Micro Devices In other news, CEO Lisa T. Su sold 70,000 shares of Advanced Micro Devices stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $506.80, for a total value of $35,476,000.00. Following the completion of the transaction, the chief executive officer directly owned 3,032,156 shares of the company’s stock, valued at approximately $1,536,696,660.80. This trade represents a 2.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Grasby sold 15,000 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $514.91, for a total value of $7,723,650.00. Following the completion of the transaction, the executive vice president directly owned 117,687 shares in the company, valued at $60,598,213.17. This represents a 11.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 213,838 shares of company stock valued at $105,533,836 over the last three months. 0.50% of the stock is currently owned by corporate insiders.

Advanced Micro Devices Stock Down 0.3% NASDAQ:AMD opened at $631.75 on Tuesday. Advanced Micro Devices, Inc. has a one year low of $188.22 and a one year high of $645.46. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.61 and a quick ratio of 1.91. The company has a market cap of $1.03 trillion, a PE ratio of 162.40, a P/E/G ratio of 6.58 and a beta of 2.45. The firm’s 50 day simple moving average is $515.38 and its 200 day simple moving average is $449.17. Advanced Micro Devices (NASDAQ:AMD – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The semiconductor manufacturer reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.62 by $0.04. The firm had revenue of $11.54 billion during the quarter, compared to analysts’ expectations of $11.31 billion. Advanced Micro Devices had a net margin of 15.58% and a return on equity of 12.30%. The company’s revenue was up 50.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.48 EPS. On average, research analysts anticipate that Advanced Micro Devices, Inc. will post 6.43 earnings per share for the current year.

Advanced Micro Devices News Roundup Here are the key news stories impacting Advanced Micro Devices this week:

Positive Sentiment: CEO Lisa Su said AMD plans to substantially increase AI-chip supply in 2027 to meet accelerating demand. AMD is working with suppliers in Taiwan and South Korea to secure advanced wafer and high-bandwidth memory capacity, signaling that manufacturing constraints may ease as demand for its AI processors expands. AMD plans to substantially increase supply in 2027, CEO says Positive Sentiment: Stifel raised its AMD price target from $635 to $700 and reiterated a Buy rating. Analyst Ruben Roy expects a third-quarter “beat-and-raise,” supported by EPYC server processors, with the MI450 AI-chip rollout and margins key to the fourth-quarter outlook. Stifel Raises AMD Stock Price Target Ahead of Q3 Earnings Positive Sentiment: Analysts and Zacks are highlighting AMD’s history of earnings surprises and the possibility of another quarterly beat. That optimism follows the company’s latest reported quarter, when revenue grew 50.1% year over year and earnings exceeded consensus estimates. Why Advanced Micro Could Beat Earnings Estimates Again Neutral Sentiment: AMD’s potential strategic agreements with OpenAI and Meta could strengthen customer demand and AI positioning, but issuing up to 320 million shares for a nominal price would increase the share count and potentially dilute existing shareholders. AMD Has Promised OpenAI and Meta Up to 320 Million Shares Negative Sentiment: Valuation remains a concern: AMD’s reported P/E ratio is about 162, and commentators argue that the stock is considerably more expensive than Nvidia relative to current earnings. Investors may therefore demand strong execution and rapid AI growth to justify the premium. AMD Reaches a $1 Trillion Market Cap Analyst Ratings Changes A number of research analysts recently commented on the company. Citigroup restated a “buy” rating on shares of Advanced Micro Devices in a research report on Tuesday. The Goldman Sachs Group raised their target price on Advanced Micro Devices from $450.00 to $640.00 and gave the company a “buy” rating in a report on Monday, July 6th. Mizuho increased their target price on shares of Advanced Micro Devices from $615.00 to $625.00 and gave the stock an “outperform” rating in a report on Monday, July 27th. Wedbush reaffirmed an “outperform” rating and set a $600.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, August 5th. Finally, Morgan Stanley upped their price target on shares of Advanced Micro Devices from $410.00 to $465.00 and gave the stock an “equal weight” rating in a report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $569.25.

View Our Latest Stock Analysis on Advanced Micro Devices

Advanced Micro Devices Company Profile (Free Report)

Advanced Micro Devices, Inc (NASDAQ: AMD) is a semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded devices and other specialized markets.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics products, and Instinct accelerators designed for artificial intelligence and high-performance computing workloads.

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AMD (Buy)

Buy AMD. Citi’s $800 target is grounded in agentic AI driving higher, continuous compute demand, and AMD is positioned as a direct beneficiary via EPYC CPUs + Instinct GPUs. The catalyst stack is real: data center revenue up 107% YoY (58% of total), Helios rack-scale systems ramping with OpenAI deployments starting Q4, and AMD planning major supply increases in 2026–2027 to close the AI demand/supply gap.

Key Risk: AMD can’t secure enough advanced wafers/HBM, so supply stays tight and customers pull forward or switch to competitors, capping revenue growth despite strong demand.

TSMC (Buy)

Buy TSMC. If agentic AI expands CPU/GPU demand, the second-order winner is foundry capacity—especially advanced nodes and packaging needed for AI accelerators. AMD’s plan to substantially increase 2027 supply depends on TSMC executing wafer and advanced packaging throughput; any sustained AI infrastructure buildout flows through TSMC’s utilization and pricing power.

Key Risk: AI demand growth slows or shifts to architectures that require less advanced capacity, leaving TSMC with excess capacity and weaker pricing.

AMD stock gained 2.7% on Tuesday after Citi raised its price target on Advanced Micro Devices to $800 from $575, citing the potential impact of agentic artificial intelligence on demand for computing infrastructure.

Citi analyst Atif Malik reiterated a Buy rating on AMD and said the firm now expects the CPU market to reach $300 billion by 2030.

The revised outlook follows the launch of several personal AI agents, including Muse, Dots, Instinct, GrokBot and GeminiSpark.

Malik said agentic AI could drive significantly higher compute demand than traditional chatbots because AI agents can operate continuously and autonomously execute multi-step tasks.

Citi estimates that the total addressable market for CPUs could expand from $29 billion in 2025 to $300 billion by 2030.

Malik said the firm updated its CPU model following the emergence of personal AI agents.

He argued that agents differ from traditional chatbots because they can continue operating between direct user interactions.

The analyst highlighted cybersecurity as an example of a potential use case where always-on agents could generate substantially higher token volumes.

This could increase inference and computing demand across both enterprise and consumer workloads.

Malik also identified Meta Platforms’ Muse as one of the first agentic AI agents to launch at what he described as true social-network scale.

However, he noted that its eventual computing requirements remain an important uncertainty for the broader AI infrastructure market.

Citi sees AMD as a key beneficiary of what Malik called a potential CPU renaissance.

The analyst also noted that Meta is among AMD’s largest customers in its server business.

AMD is also preparing to increase chip production as AI demand continues to exceed its current supply capacity.

CEO Lisa Su said during a visit to Taipei on Tuesday that the company had increased supply during 2026 and planned to substantially increase it in 2027, according to Reuters.

Su expects chip demand to remain high for the next few years. She also said AMD needs additional advanced wafer capacity and is now planning supply three to five years ahead.

The company is working with suppliers to expand production of central processing units and graphics processing units.

Su had met with Foxconn and was scheduled to meet Taiwan Semiconductor Manufacturing Co. as part of the effort.

AMD is also working with memory suppliers to secure enough components.

Memory remains constrained across the industry, including high-bandwidth memory used in AI servers, Su said, according to Taiwan’s Central News Agency.

AMD’s latest results underscore the strength of demand for its data centre products.

Second-quarter data centre revenue reached $6.7 billion, up 107% year over year, driven by demand for EPYC processors and Instinct GPUs.

The segment represented 58% of AMD’s total quarterly revenue of $11.5 billion.

AMD also expects its Helios rack-scale AI systems to support further growth.

The systems were already in production according to the company’s July statement, with OpenAI deployments expected to begin in the fourth quarter and accelerate through 2027.

With Citi projecting a $300 billion CPU market by 2030, many investors track long-term AI infrastructure plays like AMD through investment platforms.

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The personal AI agent boom is giving Advanced Micro Devices and Intel new life after the companies spent years watching Nvidia and its GPUs dominate the artificial intelligence market.

The central processing unit, or CPU, was once the primary workhorse of a computer server before Nvidia's graphics processing units took center stage with the launch of ChatGPT and the start of the generative AI era. Now CPUs are back, lifting the fortunes of market leaders AMD and Intel, whose chips specialize in powering long-running agents that can work for hours on their own.

Last week OpenAI released its AI agent Dots, following the lead of Meta, which debuted Muse in early September. Muse caught on so quickly that it topped the Apple App Store in less than two weeks. Well before that, AMD and Intel were already huge winners in the stock market this year due largely to surging demand for CPUs, but they've picked up steam in the past month, jumping 32% and 21%, respectively, beating all of tech's megacaps.

AMD's growing strength in both CPUs and GPUs has pushed the company into the trillion-dollar market cap club.

"As more agents are created and developed, and more people start to use them for more tasks, it's going to start to shift the workload away from GPUs and onto CPUs," said Ryan Shrout, president of Signal65, which consults on AI hardware and costs.

Users learned about the power behind the new agents by asking them. Muse tells users that it runs on an AMD-powered computer, while Dots said it runs on a virtual computer powered by AMD's EPYC-branded CPU.

A Meta spokesperson told CNBC that the company designed its system to use whatever kind of CPU is available.

"We take a diverse approach to our hardware and are largely CPU-agnostic by design, which gives us the most flexibility in acquiring capacity," the Meta spokesperson said in a statement.

OpenAI similarly uses multiple CPU providers, meaning AMD isn't the only game in town.

Most servers at hyperscalers — Amazon, Google, Meta and Microsoft — use CPUs made by Intel or AMD. But nearly every major cloud provider is also developing custom chips of their own, typically based on Arm technology. Arm announced its own CPU for agents in March, with Meta as the debut customer, and its stock price has more than doubled since.

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Earlier this year, Nvidia released Vera — a fully redesigned central processor — along with an entire rack filled only with the CPUs. The chip giant says it built the new Vera CPUs specifically for agents and expects CPUs to be a $200 billion market by 2030.

But it's one part of the chip industry where Nvidia isn't currently the favorite, analysts say.

"It's just a new product and they're going to be competing against a lot of different players," Jordan Klein, an analyst at Mizuho Securities, said in an interview, adding that he believes AMD currently has the "best product."

CPUs are driving a healthy portion of AMD's growth. Revenue in the company's data center business more than doubled to $6.7 billion in the quarter ended in June, accounting for almost 60% of total sales.

"The conversation has changed quite a bit over the last eight to 10 months in terms of agentic usage," said Dan McNamara, AMD's senior vice president and general manager of compute and enterprise AI. McNamara added that CPU sales are going to "really ramp."

GPUs think, CPUs doMuse, Dots and even coding software like OpenAI's Codex use AI models to plan tasks that can run autonomously. The agents need their own computer that can run for hours or even days in the background, explained Futurum Group CEO Daniel Newman.

GPUs are still needed for inference, or processing an AI model, but an agent also needs a CPU.

"CPUs are actually performing the workflows while GPUs are doing the thinking," Newman said.

Meta and OpenAI use virtual machines, which partition a server into several lighter virtual computers, so one server can support scores of users.

Some AMD EPYC processors have up to 192 CPU cores. According to benchmarks and the agents themselves, Muse's virtual computer uses two cores and Dots uses nine.

CPUs are less expensive than GPUs.

Benchmarks and queries show Dots using an AMD EPYC 9V74 CPU, which is available from resellers for under $3,000. The EPYC 9D25 reportedly used by Meta for Muse costs even less on the secondary market. Nvidia GPUs can cost more than 10 times that for a single chip, and they're usually sold in clusters of hundreds or thousands of chips.

Investors are watching how Meta plans to serve Muse users, after downloads surpassed 5 million since last month's launch, according to Sensor Tower. Morgan Stanley estimates Muse's serving costs at $3 to $130 per month, with an average of $37 per user, depending on inference usage.

The firm says Meta's agent could account for 20% of AMD's 2026 chip sales.

There's a lot of money to be made in CPUs, and forecasts for the segment's growth are accelerating.

Futurum estimates $118 billion in total CPU sales in 2027, almost double the firm's previous forecast in May.

In July, AMD predicted the entire CPU market would hit $220 billion in sales in 2030, up from a previous 2025 forecast of $60 billion. AMD said in July that it expects to take more than half of the market.

AMD currently commands about 46% of the market for x86 CPU units, Mercury Research said in August. Intel is also seeing a surge in demand.

But AMD has a foothold with hyperscalers, which is where many of the virtual machines for agents will be deployed. It also has the benefit of using an x86 architecture for its chips, allowing agents to use older software without worrying about compatibility issues.

"AMD is probably getting the most of this because they have the largest market share and the cloud hyperscaler world for CPUs," Klein said, adding that he "wouldn't rule Nvidia out."

"If you are a company that can supply both types of chips, you're in the best position," Klein said.

WATCH: Helios is AMD's first AI system to rival Nvidia Vera Rubin — we got an exclusive, first look

watch now

When Advanced Micro Devices (AMD +2.95%) agreed in October 2025 to supply OpenAI with up to 6 gigawatts of its artificial intelligence (AI) chips, it also gave OpenAI a warrant for up to 160 million AMD shares at $0.01 each. In February, Meta Platforms (META +0.30%) signed on for up to another 6 gigawatts and got a similar deal.

The last batch of shares under each warrant carries a $600 stock price threshold. This looked far off when the OpenAI deal was announced, with AMD stock near $165. But the stock first closed above $600 on Sept. 21, and it traded around $616 as of this writing.

At that price, 320 million shares would be worth about $197 billion.

Image source: Advanced Micro Devices Inc.

AMD stock is already past $600The two warrants work nearly the same way. Each covers up to 160 million shares at an exercise price of a penny. The first tranche vests with the customer's first gigawatt of AMD Instinct graphics processing units (GPUs), and all 160 million shares vest only when its purchases hit 6 gigawatts. A gigawatt measures the electricity a data center draws, so it sizes a deployment by power instead of by chip count.

Each tranche also has a stock price threshold, and those climb to $600 for the final tranche. OpenAI's warrant adds separate stock-performance thresholds on top of that. OpenAI and Meta have technical and commercial conditions to meet, too, before vested shares can be exercised. OpenAI's warrant runs through Oct. 5, 2030, and Meta's through Feb. 23, 2031.

As of June 27, no warrant shares had vested, according to AMD's latest quarterly filing. That's not a surprise, because shipments for both customers' first gigawatt were set to start in the second half of this year. But with the stock over $600, I think the GPU deliveries now matter more for vesting than the share price does.

AMD had around 1.63 billion shares outstanding as of July 29, according to its second-quarter 10-Q. Adding 320 million would bring the total to around 1.95 billion.

In other words, OpenAI and Meta might wind up owning around 16% of the enlarged company. Every current share's claim on AMD's profit would drop by about the same 16%, with the same earnings spread among more shares.

And buybacks can't help much. AMD bought back just $221 million of its stock in the first half of 2026. Even the $9.2 billion left on its authorization as of June 27 would retire only around 15 million shares at about $616 per share.

Meanwhile, AMD's pending all-stock purchase of AI research lab World Labs, valued at about $8.2 billion, might add roughly 13 million extra shares at this price.

12 gigawatts of GPUsThe warrant shares only appear if the GPUs ship, though.

"[I]n terms of the revenue per gigawatt, I think we've said double-digit billions. We're still in that range," CEO Lisa Su said on AMD's second-quarter earnings call in August.

Even at the bottom of that range, 12 gigawatts comes to at least $120 billion in revenue before every warrant share vests. That's more than seven times the $16.6 billion AMD's data center segment brought in during all of 2025.

And the segment is gaining speed. Data center revenue climbed from $5.4 billion in Q4 2025 to $5.8 billion in Q1 2026 and $6.7 billion in Q2 -- more than doubling year over year in that latest quarter. Sequential growth accelerated from around 7% to 16%.

Sure, AMD is giving up lots of stock for these sales. Split evenly, 320 million shares across 12 gigawatts is around 27 million shares a gigawatt, or about $16 billion in stock at $616 a share. AMD hasn't revealed the size of each tranche, so the real number per gigawatt might differ.

Management argues the trade pays off. When the OpenAI deal was announced, CFO Jean Hu said it was "expected to be highly accretive to AMD's non-GAAP earnings-per-share." In other words, the extra profit should more than make up for the extra shares.

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The dilution isn't my top worryI think management's case is plausible. After all, the warrant shares can only exist if AMD delivers the sales behind them.

My bigger concern is the price. AMD stock costs around 40 times the earnings analysts expect for 2027. If all 320 million warrant shares existed now, the same profit would put the stock closer to 47 times earnings.

The stock is also already past the $600 mark set for the last tranche. But at around $616 per share, I think investors are paying now for gigawatts AMD still needs to deliver over the next several years.

AMD just posted its fifth straight record quarter for server CPUs, yet a quiet structural shift in the cloud threatens to cap how far that streak can run. The answer hinges on one upcoming chip and which hyperscalers choose to…

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AMD (NASDAQ:AMD | AMD Price Prediction) and NVIDIA (NASDAQ:NVDA) both posted strong summer quarters. AMD reported its fifth consecutive quarter of record server CPU revenue. NVIDIA put its Vera CPU into full production. Cloud giants keep building their own Arm chips, and AMD feels that pressure most.

EPYC Sets Records as Vera Arrives Uninvited AMD’s Data Center revenue reached $6.72B, up 107% YoY, with operating income of $2.10B swinging from $155M loss. Cloud and enterprise server CPU sales each grew more than 70% year-over-year, with unit growth higher than price growth, indicating continued demand.

NVIDIA’s Data Center revenue hit $89.02B (+117% YoY). Trailing 12-month Grace CPU revenue exceeded $5 billion, and CFO Colette Kress said Vera expands their TAM even further, putting NVIDIA in direct competition with EPYC.

CPU Lens AMD NVIDIA Next Server CPU 6th Gen EPYC Venice, Zen 6, 2 nanometer Vera Architecture x86 Arm Growth Signal Server revenue more than 80% in 2H 2026 CPU revenue to more than double in fiscal 28 Headline Claim up to 3.3 times the performance per watt of leading Arm CPUs Agentic task completed 1.8x faster on SPEC Graviton, Cobalt and Axion Hurt AMD and Help NVIDIA Each hyperscaler Arm chip takes an x86 socket that EPYC could have won. AMD said it gained x86 server revenue share year-over-year, a measure excluding Arm entirely. Management did not name any hyperscaler custom CPU on the call.

For NVIDIA, the same chips work like proof of concept. Every Graviton fleet shows Arm runs at cloud scale, and Vera uses Arm too. NVLink Fusion lets outside chips connect to NVIDIA’s fabric, so NVIDIA gets GPU and networking spending when it loses a CPU socket. Amazon (NASDAQ:AMZN) shows this: it designs Graviton, yet AWS is deploying an additional 2 million GPUs that include Vera CPUs.

Venice Cloud Wins Will Settle the CPU Fight Venice is in production now, with cloud deployments beginning later this year. Watch whether hyperscalers add Venice instance types or move workloads to their own chips. AMD expects the 2027 server supply situation should be better than 2026. Track AWS Vera volumes against the $108B Q3 revenue guide.

Why NVIDIA Holds the Edge on the Arm Question AMD shares are up 185.66% year to date; NVIDIA is up 22.74%. AMD trades at 40x forward earnings versus 25x for NVIDIA, meaning EPYC wins for years.

AMD pairs faster CPU momentum with a 2.476 beta. NVIDIA holds the structural edge on the Arm question because Arm’s spread in the cloud strengthens its platform while pressuring AMD’s x86 franchise. That outlook changes if Venice lands major hyperscaler instance types in early 2027.

Contact [email protected] for any questions or corrections.

The U.S. is home to 13 public companies worth $1 trillion or more, and Advanced Micro Devices (AMD -3.61%) is the newest member of that exclusive club. The semiconductor giant has increased in value by a whopping 190% during 2026 alone (as of this writing on Sept. 25), thanks to explosive demand for its artificial intelligence (AI) chips and components.

Chief Executive Officer Lisa Su recently issued an extremely bullish 2027 forecast for AMD's data center business, so investors might feel there is more upside on the horizon for the company's stock. However, here's why it might be premature to start thinking about a $2 trillion valuation.

Image source: The Motley Fool.

AI companies are lining up for AMD's latest data center chips Graphics processing units (GPUs) are the primary data center chips used in AI training and inference workloads. AMD launched its first dedicated AI GPU in 2023, called the MI300X. It wasn't quite as powerful as Nvidia's H100 chip, which led the industry at the time, but it still attracted major customers including Microsoft and Oracle.

AMD spent the next few years closing the performance gap to Nvidia. In fact, its latest MI450 series GPU can be up to 15% more powerful and 30% more energy efficient than anything else on the market when paired with the company's fully integrated data center rack, called Helios. Therefore, this setup is a legitimate alternative to Nvidia's new Vera Rubin systems.

OpenAI and Meta Platforms plan to deploy 6 gigawatts' worth of computing capacity using AMD's chips over the next few years, and they will start with the MI450 GPUs and Helios racks. Anthropic and Microsoft also plan to adopt the MI450 and Helios, so this configuration is already proving very popular.

Looking ahead, AMD is now working on the MI500 series, which is scheduled to start shipping in 2027. Lisa Su recently told shareholders this new GPU could produce a staggering 2,000 times more performance than the company's original MI300X, highlighting the incredible pace of innovation.

AMD's data center revenue could double in 2027 AMD breaks its business into three core segments, which combined to deliver $11.5 billion in revenue during the second quarter of 2026 (ended June 30). However, the data center segment brought in a record $6.7 billion on its own, a whopping 107% increase from the year-ago period.

Su believes data center sales will continue to more than double in 2027. But this could merely be the beginning, because she recently predicted the market for data center chips could soar to $1.4 trillion by 2030, leaving AMD with a long runway for growth.

As GPUs evolve to deliver more performance and better energy efficiency, they will gradually reduce the cost of deploying AI software while making data center operators more profitable, creating a flywheel effect that should support ongoing demand for chips.

Here's why a $2 trillion valuation might be off the table for now AMD's business might be firing on all cylinders right now, but investors should be wary of its valuation. Based on the company's adjusted (non-GAAP) trailing-12-month earnings of $5.76 per share, its stock is trading at a price-to-earnings (P/E) ratio of 109, almost quadruple Nvidia's P/E of 28.3.

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Looking ahead, Wall Street's average estimate (provided by Yahoo! Finance) suggests AMD could grow its earnings to $15.58 per share in 2027, placing its stock at a forward P/E of 40.3. While that valuation appears slightly more attractive, it's still higher than Nvidia's P/E today.

As a result, I don't think it's realistic to expect AMD stock to double over the next 18 months or so, meaning a $2 trillion market cap might be off the table for now. Nevertheless, reaching the $1 trillion club was a phenomenal achievement, and if the market for data center GPUs becomes as valuable as Su recently predicted, then AMD shareholders will probably enjoy steady upside over the long term.

World Labs, one of the leading developers of deep learning models intended to understand physical reality, has been acquired in a $8.2 billion deal, the two companies said today.

World Labs justified the deal in a statement saying that AI development required “close collaboration across model reseach, systems and compute.” AMD, in turn, says that understanding frontier workloads like those created at World Labs will shape its chip-making roadmap.

The acquisition will see World Labs founder Fei-Fei Li join AMD as executive vice president and chief scientist. The two companies formed an inference optimization and training partnership last year, and ties have remained close. Notably, Li was a guest at AMD’s CES presentation earlier this year.

Li, a Stanford computer science professor, is considered a pioneer of AI, particularly computer vision, for her role pioneering the ImageNet database and subsequent challenges. In 2024, Li founded World Labs to develop deep learning models with a more robust understanding of reality, arguing that true general intelligence required a grounding in physics and the ability to understand and reason about data beyond text.

In a post announcing the deal, Li described the partnership as the result of a desire to scale World Labs’ technical breakthroughs beyond the lab. “Now that we have tangible proof of the possibilities, we want to do everything we can to accelerate the future,” Li wrote in the post. “To do this requires scaling our efforts, widening our reach, and getting closer to the hardware.”

“World model” remains a loose term, encompassing everything from language models trained to understand visual inputs, to models capable of generating and sustaining a high-fidelity simulation of reality. World Labs’ first product, Marble, is pitched for creating entertainment experiences, but also for the ability to create simulated environments for robot training.

The acquisition is likely to help AMD compete with long-standing rival Nvidia in creating an ecosystem for AI-specific chips. While Nvidia already has a suite of open-weight world models like Cosmos, AMD has only offered text- and video-based models to the public.

World models are seen as vital in efforts to deploy generative AI models on robotic platforms, from autonomous vehicles to industrial robots and general-purpose humanoids. In particular, the dearth of useful data to train general purpose robots means that synthetic data from world models will be key to realizing the vision put forward by companies like Tesla and Figure.

The acqusition is expected to close before the end of the year, subject to regulatory approval.

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Tim Fernholz is a journalist who writes about technology, finance and public policy. He has closely covered the rise of the private space industry and is the author of Rocket Billionaires: Elon Musk, Jeff Bezos and the New Space Race. Formerly, he was a senior reporter at Quartz, the global business news site, for more than a decade, and began his career as a political reporter in Washington, D.C. You can contact or verify outreach from Tim by emailing [email protected] or via an encrypted message to tim_fernholz.21 on Signal.

Advanced Micro Devices (AMD -1.47%) stock closed at $615.52 on Monday, Sept. 21 -- a record, and the chipmaker's first close above the $600 mark. Monday's nearly 10% surge also made AMD a trillion-dollar company for the first time. And the run isn't cooling. Shares traded near $621 as of this writing, up 187% in 2026 through Monday's close.

AMD has split its stock six times in its history, but not once since 2000. So, now that the shares carry a $600 price tag, is a seventh split on the way?

Image source: Getty Images.

Six splits, none since 2000AMD lists its split history on its investor relations site. The record shows three 3-for-2 splits and two 2-for-1 splits between 1978 and 1983, and then one last 2-for-1 split in August 2000.

Those six splits compound to a factor of 27. In other words, every share bought before the first split in 1978 has become 27 shares today. And had AMD never split at all, a single share would now go for about $16,800.

Since 2000, the company hasn't announced another split, and I can't find any public comment from management even entertaining the idea.

That silence has held through an extraordinary stretch. Since Lisa Su became CEO in October 2014, the stock has climbed from about $3 to more than $600 (a nearly 190-fold gain), and the board never split the shares once along the way.

Earnings put the stock above $600AMD's $600 share price reflects a business being repriced, not a shrinking supply of shares. The company reported about 1.63 billion shares outstanding at the end of June. That count is essentially where it started the year, while the stock's price has nearly tripled.

Not only did AMD's second-quarter revenue rise 50% year over year to a record $11.5 billion, but earnings per share also reached $1.38, up from $0.54 a year earlier. The data center segment drove the growth. Segment revenue climbed 107% from the year-ago quarter, hitting $6.7 billion on demand for the company's EPYC server chips and its Instinct line of artificial intelligence (AI) accelerators.

"AI is driving a significant expansion in demand for compute across all of our markets," AMD chair and CEO Lisa Su said in the August release announcing those results.

For the third quarter, management guided to about $13 billion of revenue, up about 41% year over year. The growth rate is easing from the second quarter's 50%, but the dollar amounts keep stepping up -- from $9.2 billion in the same quarter last year to $11.5 billion last quarter to roughly $13 billion guided for the current one.

The $600 price itself is also brand-new. The stock gained about 25% over five straight winning sessions through Monday. Of course, boards arguably respond to where a share price settles over months, not to a level it first crossed yesterday.

What would a split change?A split would change very little that matters. It divides the same company into more shares.

Multiply the count by five, for example, and the price falls to about a fifth, while every investor keeps the same percentage stake in the same business. Revenue and profits don't move, and neither does the company's $1 trillion market value.

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The stock's valuation wouldn't budge, either. Earnings per share would be divided right along with the price, so a share would cost about 40 times the company's expected 2027 earnings the morning after a split, exactly as it does today.

The one thing a split could change is appearances. After all, a $124 share might feel cheaper than a $620 one. It wouldn't be: the slice of the company behind each share shrinks by just as much.

So, is a split coming? I don't see a reason to expect one. Management hasn't raised the idea, and the $600 price tag is one day old. A seventh split may come someday. But nothing on the record points that way.

What I'd focus on instead is the price. Today's buyer is paying about 40 times what AMD is expected to earn in 2027, and those expectations already have profits roughly doubling next year. Sure, the growth today is exceptional, and it could stay that way for a while. But I think a lot has to keep going right to grow into that price. For now, I'd opt to stay on the sidelines -- split or no split.