AMD Data Center Soars 57% YoY; Cramer Hails Stock as Secretariat
AMD’s Data Center revenue rose 57% year-over-year in Q1 powered by EPYC CPUs and Instinct GPUs, boosting segment margins and positioning the company for a projected 5x CPU market expansion by 2030. Jim Cramer likened AMD to Secretariat after an 86.3% one-month rally even as a sell rating flagged that AMD’s P/E and PEG ratios now exceed Nvidia’s despite lower margins.
1. Agentic AI Fuels Data Center Growth
AMD’s Data Center segment delivered 57% year-over-year revenue growth, driven by widespread adoption of EPYC server CPUs and Instinct GPUs. Rising average selling prices and operating leverage expanded segment margins, aligning with forecasts for a 5x increase in CPU demand by 2030 as agentic AI workloads proliferate.
2. Cramer Compares AMD to Secretariat
Jim Cramer championed AMD as a “Secretariat-sized” racehorse in the AI chip market, citing an 86.3% stock gain over the past month despite a 3.51% pullback on the day of his commentary. He emphasized CEO Lisa Su’s execution and surging AI demand as catalysts to narrow Nvidia’s lead.
3. Valuation Concerns Spur Sell Rating
A recent analyst downgrade warns that AMD’s P/E and PEG ratios now exceed Nvidia’s on a forward basis, despite lower gross margins and trailing market share. The report argues that technical indicators point to an overbought condition and that the easy gains may already be priced in.
4. Virtual Annual Meeting Scheduled
AMD has scheduled its virtual Annual Meeting of Stockholders for May 13 at 9 a.m. PT, where shareholders will vote on matters detailed in the company’s proxy statement. Forward-looking strategies and governance updates will be presented via a live webcast with replay available for one year.