AMD fell 13.05% over the past week as chip stocks sold off on AI funding worries and concerns about Anthropic, though the shares are still up 146.89% year to date. The stock closed at $534.74 on October 20 and trades at 199x trailing earnings. Second-quarter revenue rose 50.1% to $11.54B and EPS of $1.66 beat estimates, while management guided to about $13B ±$300M in Q3 revenue ahead of the November 3 report. Bulls point to Helios customer demand and gigawatt-scale commitments from OpenAI, Meta and Anthropic, with a bull case of $688.22 and a bear case of $431.34. The article rates the stock a hold with a price target of $543.60.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AMDvaluationearningssemiconductors
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.48 |
| Change that session | -0.28% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- AMD vs. Nvidia. 1 Metric Proves Which Is the Best Stock.
The article argues Nvidia is the better stock to buy over AMD, based on revenue growth and valuation. In 2026, AMD shares have risen about 150% while Nvidia has returned 16%. AMD's data center revenue rose 107% to $6.7 billion in Q2 and total revenue grew 50% to $11.5 billion, while Nvidia's data center business grew 117% to $89 billion and total revenue rose 106% to $96.2 billion. If both companies hit next year's earnings projections, Nvidia would trade at 13 times earnings versus 33.5 times for AMD, which the author sees as a large premium. AMD reports Q3 results on Nov. 3.
- AMD Stock Price Prediction: Is the AI Chip Opportunity Bigger Than Wall Street Thinks?
According to 24/7 Wall St., AMD's 12-month price target is $571.04, 4.46% above the $546.68 level at noon Thursday, so the model rates the stock a hold because the target sits near fair value. The shares are up 155.27% year to date but fell 15.36% over the past week and sit about 17% below their 52-week high of $658.52. Second-quarter revenue rose 50.11% to $11.536 billion, with Data Center revenue up 107% and making up 58% of sales. The bull case is $693.71, driven by the Helios rack-scale system backed by commitments from OpenAI, Meta and Anthropic, while the bear case is $450.55, citing gaming revenue down 31%, 154 times trailing earnings and capital spending up 186.52%.
- This Is AMD's Biggest Hurdle in an AI Sell-Off (and No, It's Not Nvidia)
AMD shares have sold off recently, even though the company has benefited from an AI chip shortage because Nvidia cannot meet all demand. The article argues that valuation is a bigger risk than the AI business, with AMD's P/E at 139 and forward P/E at 72, several times higher than Nvidia, Broadcom and Taiwan Semiconductor. If AMD's P/E fell to Nvidia's current level, the stock could lose close to 80% of its value. Still, the valuation is seen as more of a threat to the stock than to the company, since data center AI chips made up 58% of AMD's latest-quarter revenue versus almost 93% for Nvidia. The author reduced AMD holdings for diversification but kept a substantial long-term position.
- Nvidia vs. AMD: Which AI Business Has More Room for Margins to Fall?
Nvidia reported $96.22 billion in quarterly revenue and a 66.2% GAAP operating margin on August 26, while AMD's August 4 results showed $11.54 billion in revenue and a 17.3% margin. In an illustrative test that cuts each margin by five percentage points with revenue unchanged, Nvidia's operating income falls 7.5% and AMD's falls 29.0%, showing Nvidia has more room to absorb pricing pressure. AMD's data-center revenue reached $6.7 billion, up 107%, versus Nvidia's $89 billion, and the article notes AMD could grow faster from a smaller profit base but faces integration costs and competitive pricing. At October 15 prices, trailing free-cash-flow multiples were about 41 for Nvidia and 109 for AMD, making cash conversion especially important for AMD. The article stresses that this one-quarter margin exercise is not a return forecast.
- AMD’s Price Action Around $600 is Telling Investors Something Specific
AMD has failed twice to hold above $600 and trades at $562.23 after falling 9.42% in the past week, as a global tech sell-off over AI funding worries hit chip stocks. Second-quarter revenue rose 50.1% to $11.54 billion, Data Center sales jumped 107% to $6.72 billion, and guidance calls for about $13 billion in third-quarter revenue. AMD has anchor deals covering up to 2 gigawatts with Anthropic, 6 gigawatts with OpenAI and up to 6 gigawatts with Meta Platforms. However, the stock trades at 154 times trailing earnings, free cash flow fell 9.9% last quarter and gaming revenue dropped 31%, while reliance on a few AI labs and hyperscalers raises risk. The average price target of $636.21 implies about 13.2% upside, but the article says Helios shipment data over the next two quarters will determine whether 2027 estimates are realistic.
- Why AMD’s CUDA-Challenging AI Playbook Makes It the Ultimate Asymmetric Buy.
AMD's stock fell 9.42% over the past week as a global tech sell-off over AI funding worries hit chip stocks, and the company absorbed about $800 million in export-control charges in Q2 2025. The author argues AMD is building a full alternative to NVIDIA's CUDA, citing more than 3 million models running out of the box on AMD and open-source ROCm contributions growing more than tenfold in a year. Major customers OpenAI, Meta Platforms and Anthropic have committed to multi-gigawatt GPU deployments, and Data Center revenue reached $6.72 billion in Q2, up 107%. Non-GAAP gross margin rose to 56% from 43%, operating margin to 27% from 12%, and FY2025 free cash flow was $5.52 billion. The piece also flags risks, including a P/FCF of 137, no dividend, and a 31% drop in Gaming revenue.
Related markets
Latest news
- Tesla is trading more like SpaceX than a car company
Tesla (TSLA) has recently moved much more in step with SpaceX (SPCX): over the past 20 sessions, their correlation is 0.64, versus 0.15 in SpaceX's first 20 sessions after its June IPO. By contrast, Tesla's correlation with GM and Ford is negative, at -0.10 and -0.14. Since Elon Musk first hinted at a combination of the two companies, Tesla has risen about 4% through Tuesday, while GM and Ford have each fallen more than 11%. After removing Nasdaq 100 moves, the leftover correlation between Tesla and SpaceX is 0.32, which the article links to merger trading; SpaceX is valued at about $2.25 trillion versus about $1.52 trillion for Tesla. Options are pricing a 5.4% move after Tesla's third-quarter report, while Tesla's actual median post-earnings move since 2023 has been closer to 10% in either direction.
- The Same Banks Writing the Rules for AI Agents Are the Ones Locking Them Out
The article argues that major banks are pursuing two contradictory paths: building open standards that let AI agents access accounts while locking those agents out in practice. Bank of America and Wells Fargo appear both on the roster for the Personal Agent Protocol (Poppy), announced by Sierra and Meta, and on the list of firms restricting third-party AI access. The protocol proposes permission levels from fully blocked to full access, but payments remain outside its core specification. Meanwhile, JPMorgan Chase, Bank of America, Citi, Schwab and Wells Fargo moved to restrict third-party agents, citing concerns about rogue agents, the need for human approval of money movements, and unclear liability. The article describes this private self-regulation as filling a gap left by missing legislation.
- Treasury Secretary Bessent likens GENIUS Act to Lincoln-era banking reform
US Treasury Secretary Scott Bessent compared the GENIUS Act on stablecoins to the banking reforms under President Abraham Lincoln, calling it a “watershed moment” for American finance in an X post welcoming the Office of the Comptroller of the Currency’s (OCC) final rule. He cited the National Currency Act of 1863, and the OCC said its rule would support private-sector innovation, competition and American leadership in digital assets. The rules on stablecoin reserves, redemptions and related services take effect on January 18, 2027. From that date, companies issuing payment stablecoins in the US will generally need regulatory approval, covering national banks, federal savings associations, federal branches of foreign banks, nonbank companies and certain foreign issuers.
- Model Moats: The Vanishing Weight and the Price of the Watt
Anthropic has committed nearly $90 billion to secure compute infrastructure through Nscale, including $44.6 billion disclosed in a September SEC filing and a second deal of about $45 billion in advanced negotiations, as reported by Bloomberg; both target the Monarch Compute Campus in West Virginia. The article argues that model weights are becoming a commodity and the race has shifted to who controls power. In the same week, DeepSeek open-sourced DeepInfer and llm-d 1.0 reached general availability; IBM, citing vendor-reported figures, claims self-hosting on llm-d cuts costs 5-10x versus commercial APIs. In China, ByteDance, Alibaba and Tencent have ordered over 3 million Nvidia RTX PRO 5500 chips worth roughly $35 billion, but according to unverified social media reports, the fill rate is only 5-10%.
- A rare phenomenon just appeared on the Vietnamese stock market
Foreign investors net bought VND 190 billion on HoSE on 21/10, their second net-buying session since Vietnam was upgraded to FTSE Russell's secondary emerging market status effective 21/9, ending 20 consecutive sessions of net selling; the article notes the amount is small relative to earlier selling and a reversal cannot yet be confirmed. BSC estimates about VND 33,000 billion (USD 1.27 billion) of upgrade-related inflows next year, following a roadmap of USD 141 million in September 2026, USD 282 million in March 2027 and about USD 494 million each in June and September 2027. BSC also expects selling pressure from active funds to ease after four consecutive years of net selling, and interbank liquidity to improve as the deposit-credit gap narrowed from VND 2.8 quadrillion to VND 2.7 quadrillion in August, the first decline in 11 quarters.
- A bank stock drew buying from more than 50 funds, with Q3 profit forecast to surge
Bank stocks made up 8 of the 10 most net-bought stocks by funds in September, with net buying of about VND 1,034 billion, mainly in VPB, MBB and ACB, marking the second consecutive month of net buying. MBB drew about 52 funds, the most participants, while VPB saw net buying of 28.7 million shares from 20 funds. FiinGroup attributed much of the flow to ETF portfolio rebalancing rather than individual decisions by open-ended funds. SSI Research forecasts Q3 2026 pre-tax profit for the banks it analyzed at VND 10,000 billion, up 38% year on year but down 5% quarter on quarter, with pressure from NIM and bad debt. Meanwhile, equity funds fell an average of 6% in Q3, and investment funds saw net outflows of about VND 8,600 billion.
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.