AMD shares fell 13% last week as funding for AI companies looked harder to secure, following Firmus cancelling its IPO, rising financing costs for CoreWeave, and a possible $500 billion cut to Anthropic's expected valuation. AMD posted $21.8 billion in revenue for the first six months of 2026, up 44%, with data center revenue of $12.5 billion, up 81%. Anthropic and OpenAI are expected to be major buyers of MI450 GPUs, but OpenAI has postponed its IPO, which could put its AMD chip plans at risk without more funding. Based on adjusted earnings of $5.76 per share over the last four quarters, AMD's P/E is 91.8 versus Nvidia's 27.1, and the author argues the valuation makes a rally unlikely even if the Q3 report is strong, stating he would not buy at this time.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/20/2026 | 717.63 |
| Change that session | -0.10% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- FinancialContent - Teradyne , Vishay Intertechnology , Allegro MicroSystems , Entegris , and AMD shares are soaring , what you need to know
- FinancialContent - AMD (AMD) Stock Trades Up, Here Is Why
- Is AMD Stock Safer Or Riskier Than A Year Ago?
AMD shares returned 157.8% over the past year, compared with 17.9% for the S&P 500. As of June 27, 2026, cash and short-term investments stood at $13.1 billion, up from $5.87 billion a year earlier. Capital spending over the last twelve months reached $1.68 billion, above the $1.17 billion depreciation and amortization charge, reversing a pattern in which spending stayed below that charge at each of the prior 16 quarter ends. Management said AMD is spending more to meet server chip demand it did not forecast, with fiscal Q2 2026 data center revenue up 107% to $6.7 billion and free cash flow of $1.56 billion. The article says the key question is whether AMD keeps converting that demand into data center sales, with its next report due on or around November 3, 2026.
- The Real AMD Catalyst Investors Are Sleeping On Isn’t What You Think
The article argues that the EPYC Venice server CPU may drive AMD stock through 2027 more than the Helios GPU ramp that draws most attention. The 24/7 Wall St. price target is $583.84 against a $591.22 share price, implying a hold rating, with a bull case of $696.27 and a bear case of $459.51. AMD shares are up 176.81% year to date. Q2 revenue rose 50.1% to $11.54 billion and Data Center revenue rose 107% to $6.72 billion, and management guided Q3 revenue to about $13 billion. Risks cited include a trailing P/E near 224, tight server CPU supply, Gaming revenue down 31% and export controls.
- Is There A Risk Hiding In AMD Stock's Big Run?
AMD's operating margin reached 17.3% in the quarter to June 2026, while shareholders pay 22.6 times sales for the stock versus 3.1 times for the S&P 500. The margin rose sharply from a 1.7% operating loss in the quarter to June 2025, which AMD linked to about $800 million of inventory and related charges from U.S. export limits on MI308 shipments to China, though the margin has not risen steadily and fell to 13.7% in the quarter to September 2025. Over the twelve months to June 2026, AMD's operating margin was 15.7% versus 18.5% for the S&P 500, even though its sales grew an average of 24.4% a year over its last three twelve-month periods compared with 5.9% for the index. The stock fell harder than the S&P 500 in each of five market shocks since 2022, yet it returned 163.8% over the twelve months to October 14, 2026, versus 17.3% for the index. The article says the operating margin is the number to watch in AMD's next report, expected around November 3, 2026, and notes that the pending Taalas and World Labs acquisitions are not yet reflected in the margin.
- Advanced Micro Devices vs. Arm: Which Tech Stock Is a Better Buy in 2026?
The article compares Advanced Micro Devices, which designs and sells CPUs, GPUs and AI accelerators directly, with Arm, which licenses its chip architecture and earns royalties. In the fiscal year ended December 27, 2025, AMD reported revenue of nearly $34.6 billion, up about 34.3%, with net income of about $4.3 billion and free cash flow of nearly $6.7 billion. Arm reported $4.9 billion in revenue for the fiscal year ended March 31, 2026, up 22.8%, with net income of about $904 million and free cash flow of roughly $979 million. Stock-based compensation was about 21.2% of AMD’s operating cash flow and roughly 69% of Arm’s. The article also cites risks: AMD faces competition from Intel and Nvidia, depends on TSMC and faces export restrictions to China, while Arm depends on a smartphone market nearing saturation and faces competition from Qualcomm.
Related markets
Latest news
- Musk's wants to merge SpaceX and Tesla: Here's what to know
Musk said SpaceX and Tesla have formed special committees to study a merger, which would be worth about $3.5 trillion combined and would be the largest corporate deal in history. SpaceX, valued at about $2 trillion after a record listing this year, absorbed Musk's AI startup xAI in February, while Tesla is valued at about $1.5 trillion. Musk holds about 82 percent of SpaceX's voting power but only about 20 percent at Tesla. Dan Ives puts the odds of a deal at 90 percent by early 2027, though Musk called the requirement of a majority of all Tesla shares 'quite a high hurdle'. Loyal retail investors hold an estimated 25 to 27 percent of Tesla shares, and legal obstacles appear slight because both companies moved their incorporation to Texas from Delaware.
- CoreWeave and Nebius Stocks Are Crashing. Time to Buy the Dip?
Shares of Nebius and CoreWeave each fell 25% in the week of October 12 to 16. The sell-off stems from the yield on CoreWeave's debt in the secondary market surging to 15%, versus roughly 5% on Treasuries, which pushes the debt into 'distressed' territory and signals doubts about its ability to meet obligations. Nebius sold off in sympathy as a fellow neocloud company. The bigger concern is that both companies must keep issuing debt to fund data centers, and if yields are high at issuance, the assumption of nearly unlimited cheap capital could be challenged. The author says it is unclear whether now is the time to buy.
- Disney’s multiplatform Super Bowl plan frustrates ABC affiliates
ABC station owners are irritated that Disney is airing the Super Bowl across several platforms, including Disney+, ESPN2, NFL Network and ESPNU, even though the game is already on ABC and ESPN. A station group CEO estimates that the combined platforms could cut broadcast ad revenue by up to 35% compared with last year. Local affiliates typically earn about 3% of annual ad revenue from the Super Bowl and pay network owners reverse retransmission fees, but Disney+ lacks geofenced ad insertion, so affiliates cannot sell ads to streaming viewers. Disney says national commercials will be identical on all platforms and that streaming major live events is standard industry practice. Super Bowl LX drew 125.6 million viewers in February.
- Meta’s deal to keep Zuckerberg in California adds fuel to wealth tax debate ahead of election
Meta says Mark Zuckerberg will remain in California for eight years and has created a new stock plan that could help cover his taxes if Proposition 40, a 5% tax on Californians worth over $1 billion, passes on Election Day on Nov. 3. According to a filing released with its third-quarter earnings, Meta will issue non-voting Class C shares starting in January, and Zuckerberg can sell or transfer up to 20% of the shares granted to him without affecting his majority voting control. The filing says Zuckerberg’s leadership is crucial to the company’s growth and its AI ambitions, including Meta Superintelligence Labs. Most of the tech industry opposes the measure, while a recent Citrin-Politico poll found 46% in favor and 43% against, suggesting it may fall short of the majority support it needs.
- Nasdaq sell-off: A momentum unwind 'for the record books'
Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, calls Thursday’s sell-off in the Nasdaq Composite (^IXIC) a momentum unwind “for the record books.” He says the market spent the first half of 2026 driven by a beta and momentum trade led by semiconductors, but in the third quarter, as rates rose, money shifted into quality stocks. He does not think the sell-off is justified by fundamentals, arguing that institutional portfolio managers swapping out of factor positions can drag down whole baskets of stocks. In semiconductors, spot rental rates for Nvidia Blackwell chips are higher than a month ago, showing tightening compute supply, even as financing costs rise and investors worry about neocloud business models and the rising cost of insuring their bonds.
- Dune launches real-time data feeds covering 200 onchain trading venues
Blockchain analytics platform Dune has launched real-time market data feeds covering more than 200 onchain trading venues, aiming to bring this data into the systems of traditional financial institutions. The feeds draw trade data from 12 blockchains, including Ethereum, Solana and Base, about one second after execution, covering both spot trading on decentralized exchanges and perpetual futures on Hyperliquid and Lighter. Early clients include quant funds, market makers, asset managers and bank trading desks, which use the data to assess liquidity and compare prices, though Dune did not name them. Meanwhile, the tokenized stock market has grown sharply, with distributed value reaching $3.58 billion, but 16 companies, including Microsoft, Alphabet and Goldman Sachs, have objected to their shares being traded on OKXICE’s proposed platform, and liquidity remains fragmented.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.