AMD trades at 71.3 times this year’s expected earnings, falling to 29.6 times by 2028 if revenue grows 42.7% annually driven by ‘Agentic AI’ server CPUs that management forecasts will expand total addressable market over 35% and deliver over 70% Q2 server CPU revenue growth. Shares slid alongside other chip stocks during a broad semiconductor selloff after indications that OpenAI may postpone its IPO until 2027.
Advanced Micro Devices currently trades at 71.3 times its projected earnings for this year; if the company sustains a 42.7% annual revenue growth rate, that same share price equates to 29.6 times earnings in 2028, effectively granting a 58% forward valuation discount for patient investors.
Management attributes the growth outlook to a structural shift toward ‘Agentic AI,’ projecting its server CPU total addressable market will expand over 35% annually and guiding for year-over-year server CPU revenue growth exceeding 70% in the second quarter.
Shares of Advanced Micro Devices fell in line with a broader semiconductor selloff when indications emerged that OpenAI may delay its public offering until 2027, reviving investor jitters over the sustainability of AI infrastructure spending.
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