Marina Lyubimova
⬤ AMD presents a striking contrast between robust growth metrics and cooling share momentum. The chipmaker delivered a 39% surge in data center revenue last year while shares hover near $200—up 78.7% year-over-year but retreating from earlier peaks.
⬤ Management has set an ambitious trajectory with roughly 35% annual growth guidance extending through 2030. Current valuation sits around 19 times projected 2027 earnings, a relatively modest multiple given the aggressive expansion targets. Yet recent trading action suggests investors are stepping back after the stock's strong run-up.
⬤ The data center business drives much of AMD's performance story, while two major product launches loom large this year: the MI450 accelerator and Helios rack system. Both releases are designed to capture surging AI compute demand, making execution critical to maintaining the growth narrative.
⬤ AMD's situation illustrates how forward projections and product roadmaps are being weighed against current price levels, with the market taking a cautious stance despite the company's strong positioning in AI infrastructure and data center expansion.
Marina Lyubimova
