Lisa Su Just Delivered Fantastic News for AMD Investors
AMD has been delivering monster stock price gains in 2026, but 2027 could be a different story.
Lisa Su, CEO of AMD, has been instrumental in turning the tech company around and positioning it for the AI era. The stock experienced a significant price drop after reaching an all-time high in October, but a positive earnings report on November 3 led to a bounce. AMD's diversified chip business, including CPUs, GPUs, and data centers, has been a mixed bag.
While the data center segment saw impressive growth, other divisions, like client and gaming, underperformed. AMD's valuation has been high, trading at 110 times earnings, but a more accurate measure is the 1-year forward price-to-earnings ratio at 29 times. Despite this, AMD's growth prospects look promising, with expectations of server revenue doubling by 2027.
However, Nvidia, a market leader in the data center segment, is currently priced more attractively, trading at 11 times next year's earnings.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.