AMD: Paying Up For A Ramp That's Already Been Outlined

Constantine Theophylactou 137 Followers Follow Summary Advanced Micro Devices, Inc. is rated Buy, driven by robust data center growth, AI partnerships, and a favorable management outlook. AMD’s Q2 FY26 revenue surged 50% YoY to $11.5B, with Data Center revenue up 107% YoY and now comprising 58% of total revenue. Despite trading at a premium (FWD P/E ~60x), AMD’s valuation is justified by anticipated EPS doubling into FY27 and strong AI-driven growth. Key AMD stock risks include non-binding AI partnership commitments, reliance on TSMC supply, and the need for flawless execution to realize aggressive EPS targets. SweetBunFactory/iStock via Getty Images Introduction I rate Advanced Micro Devices, Inc. ( AMD ) a Buy because of their excellent fundamental growth; announced AI partnerships with major players in the industry such as OpenAI ( OPENAI ), Meta ( This article was written by Constantine Theophylactou 137 Followers Follow I am currently a finance student at York University, where I’m building a strong foundation in financial markets and investment strategies. My passion for it drives me to continuously learn and improve. Writing for Seeking Alpha allows me to share my journey, insights, and analyses with a broader audience. My motivation is to engage with the investing community, contribute valuable content, and refine my strategies as I grow as an investor. I’m excited to share my experiences and help others along the way. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.