AMD posted 107% data center growth in Q2 while Palantir, despite 93% revenue growth, trades at a forward P/E of 109 with no valuation cushion. Meta committed 6 gigawatts of AMD MI450 capacity, yet NVIDIA still commands roughly 85% of the GPU market. The most widely read finance newsletter on Substack isn't published by a bank, it's Doomberg, where 383,000+ readers get the energy and macro analysis the mainstream press misses. 24/7 Wall St. readers save 17% on their first year here.
At $514, AMD (NASDAQ:AMD) looks constructively positioned, while at $174, Palantir (NASDAQ:PLTR) appears fully valued. Both names anchor the AI trade, yet their setups sit on opposite sides of the risk curve. AMD's Q2 delivered $11.5 billion in revenue with data center up 107% year over year, and Q3 guidance points to roughly $13 billion.
Palantir posted $1.94 billion in Q2 revenue, up 92.8%, yet shares are down 2.09% year to date as the multiple digests its own success. The bull case rests on customer commitments that read like a backlog. Anthropic has agreed to deploy up to 2 gigawatts of MI450 GPUs in Helios racks.
OpenAI has committed to 6 gigawatts and Meta (NASDAQ:META) another 6 gigawatts. Microsoft (NASDAQ:MSFT) is expanding Azure's Helios footprint. Lisa Su now sizes the data center TAM at roughly $1.4 trillion by 2030, and 2027 data center revenue is guided to more than double.
Forward P/E of 69 with a PEG of 1.1 is not cheap, but it is not extreme for a business compounding revenue above 40% with expanding margins. Analysts carry a $612.84 average target, about 19% above the quote, with 41 Buy or Strong Buy ratings, 10 Holds, and zero Sells. The pushback starts with the tape.
AMD is up 140.19% year to date and 184.27% over one year, dwarfing the S&P 500's high single-digit YTD gain. Trailing P/E sits at 132, EV/EBITDA at 78, and beta at 2.49. Before Doomberg published a word, its team spent long careers in heavy industry, private equity, and the hard sciences.
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