AMD 1quarterly results send shares soaring since the start of the year 2times, valuation 150times
AMD 2026 reported 1revenue growth and strength in its data center business in its quarterly results. Shares have risen more than 2 times since the start of the year, and the valuation stands at 12 times trailing earnings, 150 times expected earnings. The article said investors who believe in demand for AI infrastructure may have room to buy, but advised keeping any new purchase small.59 times
AMD shares have risen more than 2 times since the start of the year. 2026 reported 1quarterly results triggered the share-price rally. Investors focused on the results.
The company 1 quarterly revenue rose year over year by 38%. It said it generated record quarterly free cash flow. It disclosed that it had secured major customers, including Meta and OpenAI.
Data center revenue rose year over year by 57%. The company said data center demand was driving growth in its results. It added that customer contracts contributed to revenue expansion.
The current share price is at12 months’ earnings, at150 times. On the basis of expected earnings, it was assessed at59 times. High multiples leave little room for earnings misses.
The report said there may be room to buy for investors who believe AI infrastructure investment will continue. At the same time, it recommended keeping any new purchases small, citing the risk of a pullback after the sharp rise.
From an investor’s perspective, the next quarter’s results, data center revenue trends, and the disclosure of free cash flow warrant close attention. It also disclosed that the current valuation is already high. The contents of the earnings announcement are likely to influence the share price’s future direction.
Sources: The Motley Fool
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