AMD Secures Doubled Riot Capacity With 91% Margins Despite Valuation Questions
AMD•Advanced Micro Devices received a mixed assessment from a Wall Street analyst, citing high valuation and limited upside. AMD doubled contracted capacity with Riot Platforms for its 2 GW Texas and 756 MW Corsicana data centers, which have 91% lease margins and projected $204 million in annual NOI.
1. Analyst Flags Valuation, Limited Upside
Advanced Micro Devices drew a mixed assessment from a Wall Street analyst, citing elevated price-to-earnings multiples and forecasting limited upside potential. The analyst highlighted concerns over long-term earnings growth despite AMD's leadership in AI and data center processors.
2. Riot Capacity Expansion Bolsters Growth Outlook
AMD more than doubled its contracted hardware capacity with Riot Platforms to power mining facilities repurposed as data centers in Texas (2 GW) and Corsicana (756 MW). These sites feature 91% lease margins and are projected to generate $204 million in annual net operating income, enhancing AMD’s data center revenue stream.
