AMD’s Trillion-Dollar Valuation Puts AI Growth Under Scrutiny
Data-center sales and customer commitments are growing, but investors are weighing lofty expectations and the risk of slower AI spending.
AMD crossed a $1 trillion market value for the first time after its shares rose 9.6% to a record $613.31 on September 21. The rally reflected stronger investor confidence in the company’s expanding role in AI computing, Reuters reported.
As of Friday’s close, AMD shares traded at $630.63, up 0.22% from the previous close. The stock has gained 185% in 2026, compared with a 15.8% rise for the Nasdaq, according to the article.
AMD’s Data Center revenue reached $6.7 billion in the second quarter of 2026, up 107% from a year earlier. Operating income in the segment was $2.1 billion, compared with a $155 million loss a year earlier. The company cited demand for EPYC processors and Instinct MI350 GPUs.
AMD is also expanding beyond individual chips with its Helios platform, which combines GPUs, CPUs and networking. OpenAI and Meta each intend to deploy up to 6 gigawatts of AMD data-center GPUs under multi-year agreements, initially using MI450 products.
The risks include high expectations after the stock’s sharp rise and dependence on spending by large AI customers. Reuters reported AMD slightly missed revenue expectations in its latest quarter, while industry AI infrastructure spending is estimated to reach $795 billion in 2026 and more than $1 trillion in 2027.
Meta is developing its own Iris AI accelerator and plans to begin production in September 2026. Greater use of internally designed chips could limit how much of the company’s spending goes to outside suppliers such as AMD and Nvidia.
This article was produced with the help of AI technology.
Source: Yahoo Finance
