Quick Read – AMD’s Data Center revenue hit $6.72 billion in Q2, up 107% YoY, as hyperscalers aggressively diversify GPU spending beyond NVIDIA. – Partnerships with Meta and OpenAI underpin AMD’s MI450 ramp, while operating income surged 1,585% YoY to nearly $2 billion. – SpaceX…
itching to NVIDIA and a trailing P/E near 162 are the primary risks that could derail AMD’s 142% year-to-date rally. – At $518.58, Advanced Micro Devices (NASDAQ:AMD) looks compelling, and its punishing beta of 2.49 works in shareholders’ favor at this stage of the AI capex cycle. The stock has gained 142.15% year to date, and Q2 earnings validated the reason why
AMD sells the two chips hyperscalers cannot get enough of: Instinct GPUs for AI training and inference, and EPYC server CPUs that run the cluster headnodes around NVIDIA (NASDAQ:NVDA) and its own accelerators. Data Center revenue hit $6.72 billion in Q2, up 107% year over year, and now represents 58% of total company revenue. That is the mix change bulls have waited three years for.
Why The Setup Favors The Bulls The bull case is straightforward capex math. Hyperscaler AI spending is accelerating past $300 billion, cloud giants are actively diversifying away from sole-source NVIDIA reliance, and AMD is playing from a low single-digit share base. Even minor budget reallocations translate into outsized top-line growth.