AMD's Data Center revenue hit $6.7 billion in Q2, up 107% year over year, now representing 58% of total revenue and powering a 140% year-to-date stock surge. Chase Coleman's Tiger Global dumped Nvidia, Microsoft, and Alphabet to buy AMD, betting the challenger offers better risk/reward than incumbents priced for perfection. AMD's trailing P/E of 132 and forward P/E of 69 leave no room for error, as a 7% earnings-day selloff following a Q2 beat already showed.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today. AMD (NASDAQ: AMD) trades at $514.39, with the setup looking balanced.
The AI accelerator thesis is real, but the stock already reflects most of it. Chase Coleman's Tiger Global cut NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) while adding AMD and SpaceX reframes AMD as the marginal AI trade instead of the incumbent bet. AMD chases Nvidia in accelerators while gaining share in server CPUs.
Shares are up 140.19% year to date and 184.27% over the past year, powered by a Data Center segment that now represents 58% of total revenue, up from 42% a year ago. Tiger Global's swap into AMD out of mega-cap incumbents signals that AMD's forward risk/reward beats stocks already priced for perfection. Q2 was a genuine inflection.
Revenue hit $11.5 billion, up 50% year over year, with Data Center revenue of $6.7 billion, up 107%. Non-GAAP gross margin expanded to 56%, and Q3 guidance points to roughly $13 billion in revenue, up 41% at the midpoint. The catalyst list is stacked.
AMD announced a strategic partnership with Anthropic to deploy up to 2 gigawatts of MI450 series GPUs in Helios, plus expanded Microsoft deployment of Helios on Azure. Lisa Su told investors AMD now expects data center segment revenue to more than double year-over-year in 2027, and to significantly exceed our $20 annual EPS target within our strategic timeframe. Sell-side agrees: 41 of 51 analysts rate the stock Buy or Strong Buy, with a $612.84 target price.
Extract — continue reading at the source.
