AMD trades at roughly 71.3 times this year’s expected earnings, with that multiple projected to fall to 29.6 by 2028 based on a 42.7% annual revenue growth forecast and a 58% forward multiple reduction. Shares slid alongside Broadcom, Micron, Arm and Qualcomm after OpenAI postponed its IPO until 2027 following SpaceX’s debut volatility.
AMD trades at about 71.3 times this year’s expected earnings, a premium set to decline to roughly 29.6 times projected 2028 earnings if analysts’ 42.7% annual revenue growth forecast holds, implying a 58% reduction in the forward multiple over three years.
Management projects server CPU revenue to exceed 70% year-over-year in Q2, driven by an expanded total addressable market growing over 35% annually due to structural shifts in demand for Agentic AI workloads in data centers.
AMD shares fell alongside Broadcom, Micron, Arm and Qualcomm after OpenAI announced it would delay its IPO until 2027, reflecting concerns about near-term chip purchase slowdowns despite long-term AI infrastructure demand remaining robust.
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