AMD and Microsoft stock splits irrelevant to AI valuation, analysis says
An analysis argues that the lack of recent stock splits at AMD and Microsoft is irrelevant to their investment value, noting that both companies have delivered significant returns over the past decade without splitting shares. The piece highlights that AMD’s data center business grew 107% to $11.54 billion in revenue, driven by strong demand for its Venice EPYC chips, while Microsoft’s Azure…
Key points
- AMD data center revenue jumped 107% to $11.54 billion, now 58% of total revenue.
- Microsoft Azure grew 43% to $90.01 billion revenue, with Copilot passing 30 million paid seats.
- Microsoft expects $175 billion capital spending in fiscal 2027, benefiting chip suppliers like AMD.
The article contrasts the two companies' positions in the AI supply chain: AMD sells the hardware, while Microsoft rents the compute and sells software. Microsoft plans to deploy AMD’s Helios racks at scale on Azure, but also maintains leverage by using NVIDIA hardware and its own chips. Microsoft expects capital spending of about $175 billion in fiscal 2027, which will benefit chipmakers and infrastructure suppliers.
The author suggests Microsoft offers steadier AI exposure due to its lower valuation multiple and platform breadth, whereas AMD has a stronger growth profile but higher volatility after a 283.65% rise in the past year. The key risk for AMD is the complexity of Helios shipments, while Microsoft must sustain Azure growth as new data centers come online.
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4 episodes →- AMD and Microsoft stock splits irrelevant to AI valuation, analysis saysthis story
AMD and Microsoft Haven’t Undertaken Stock Splits for 20+ Years And Investors Shouldn’t Care
247wallst.com · 5 October 2026
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