AMD’s 57% Data Center Growth Drives Rebound After 17% Pullback
AMD•Advanced Micro Devices rallied in premarket trading as chip stocks recovered from a prior 10% ETF sell-off, helping lift futures on the Dow, S&P 500 and Nasdaq 100. AMD’s data center revenue surged 57% year-over-year despite a 17% pullback from 52-week highs, intensifying debates over its valuation versus higher-growth rivals.
1. Sector Rebound Spurs AMD Gains
Chip stocks led a market rebound that lifted Dow futures by 0.75%, S&P 500 futures by 0.72% and Nasdaq 100 futures by 1.2% as the iShares Semiconductor ETF recouped losses from a 10% decline last Friday. AMD joined Micron and Intel in posting premarket gains, reflecting renewed investor appetite ahead of a record-setting SpaceX IPO.
2. AMD Stock Pullback Raises Valuation Questions
Despite the rebound, AMD remains 17% below its 52-week high, fueling debate over whether the company has reached peak cycle value. Traders have cited portfolio rebalancing to free cash for new listings and rotated out of high-flying tech names into beaten-down areas.
3. Robust Data Center Revenue Supports Growth Thesis
AMD’s data center segment reported a 57% year-over-year revenue increase, underscoring strength in server and cloud markets. This performance contrasts with peers’ faster growth rates, prompting investors to weigh long-term potential against current valuations.
