AMD Is Standing Precariously Close To The Cliff (NASDAQ:AMD)
JR Research·2026-06-17·via All Articles on Seeking Alpha
Summary
Advanced Micro Devices, Inc. has experienced a phenomenal rally, driven by explosive growth in data center CPU and AI opportunities.
AMD's acquisition of MEXT targets high memory costs, enhancing customer value and adding another growth layer to its expanding TAM, now approaching $200 billion by decade's end.
Analysts expect AMD's revenue to nearly double to $100 billion by FY2028, but the stock trades at a very stretched 62x forward earnings, far above industry averages.
Bifurcation against Nvidia's valuation has now stretched to eye-popping levels, indicating how quickly the market has priced in AMD's forward opportunities a few years ahead.
Urge investors to be really cautious at this point. Price action momentum has clearly slowed, valuations are elevated, and a pullback may be more than warranted after an extraordinary run.
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Advanced Micro Devices, Inc. (AMD) is arguably the hottest stock right now among its semiconductor design peers (SMH). Who would have thought
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, SMH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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