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.
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