AMD’s AI chip deals push revenue up 107% but leave valuation at 229x
AMD’s Data Center revenue jumped 107% last quarter, driven by AI chip demand from OpenAI and Meta. OpenAI committed to 6 gigawatts of AMD’s MI450 GPUs, while Meta pledged up to 6 GW, alongside Anthropic’s planned 2 GW deployment. The company expects server revenue to grow over 80% in the second half and Data Center revenue to more than double in 2027, though gaming revenue fell 31% and free cash…
Key points
- AMD’s Data Center revenue surged 107% last quarter, driven by AI chip orders from OpenAI, Meta, and Anthropic
- OpenAI and Meta committed to 6 GW each of AMD’s MI450 GPUs, with Anthropic planning 2 GW
- AMD’s stock trades at $613, with a 229x P/E ratio, though analysts split on its $680 bull case or $457 bear case
AMD’s stock trades near fair value at $613, just above the 24/7 Wall St. model’s $592 price target. The company’s 229x trailing P/E ratio is far above Nvidia’s 46x, though AMD’s gross margin expanded to 56% from 43% year-over-year. Analysts split on the outlook: 43 rate the stock a buy or better, while a bear case targets $457.38, citing risks like Helios delays or HBM memory supply constraints.
The story so far
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AMD Doesn’t Need to Beat Nvidia to Be a Big AI Winner
finance.yahoo.com · 1 October 2026
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This text was published by finance.yahoo.com and written by Vandita Jadeja. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
Coverage and discussion
4sources- Nvidia (NVDA) Stock Gets Fair Value Boost As AI Demand And Analyst Views ShiftPress · finance.yahoo.com ·
- Here's My Top AI Stock to Buy in OctoberPress · fool.com ·
- Nvidia vs. AMD: Which AI Chip Stock Has More Room to Run After AMD's Surge Past $1 Trillion?Press · aol.com ·
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
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