AMD reports 107% data center growth in Q2, while Palantir trades at a forward P/E of 109 despite 93% revenue growth.
Advanced Micro Devices (NASDAQ:AMD) reported $11.5 billion in Q2 revenue, driven by 107% year-over-year growth in its data center segment. The company guided Q3 revenue to approximately $13 billion, supported by commitments from Meta, Microsoft, and OpenAI for its MI450 GPUs.
Palantir (NASDAQ:PLTR) posted $1.94 billion in Q2 revenue, up 92.8%, but trades at a forward P/E of 109, reflecting valuation concerns. AMD’s forward P/E of 69 and PEG ratio of 1.1 contrast with Palantir’s stretched multiple, despite both anchoring the AI trade.
Analysts maintain a $612.84 average price target for AMD, 19% above current levels, with 41 Buy or Strong Buy ratings. NVIDIA still dominates 85% of the GPU market, but AMD’s data center TAM is projected to reach $1.4 trillion by 2030.