AMD Shares Fall After Record Q2 as $440 Valuation Leaves Little Upside
Updated
Updated · Seeking Alpha · Aug 25
AMD Shares Fall After Record Q2 as $440 Valuation Leaves Little Upside
3 articles · Updated · Seeking Alpha · Aug 25
Summary
AMD shares slipped even after the chipmaker posted record second-quarter results and strong guidance, with investors focusing on stretched expectations rather than the headline beat.
A refreshed discounted-cash-flow model put AMD at about $440 a share—roughly near current trading levels—suggesting the stock’s rally has largely erased its margin of safety.
Data center growth, the Helios ramp and major AI deployments with OpenAI, Meta, Anthropic and Microsoft still support the long-term bull case.
Competitive pressure remains the key overhang as large customers build in-house chips and SpaceX commits exclusively to Nvidia, clouding future merchant GPU demand.
Despite record earnings, AMD's stock tanked—are hidden fears of Nvidia's dominance and custom silicon secretly scaring away Wall Street's biggest investors?
With tech giants rapidly building their own chips, will AMD's massive $5 billion Anthropic gamble become a catastrophic financial misstep by 2027?
SpaceX just rejected AMD hardware for Nvidia, but could this devastating rejection actually mask a brilliant long-term strategy for AMD's Helios platform?