AMD posts 38% revenue growth in Q1 but lags NVIDIA; shares pricey after 200% rally

Advanced Micro Devices (AMD) reported a strong Q1 with 38% revenue growth and a 57% surge in data center sales driven by AI demand. However, its growth rate trails NVIDIA's, and client/gaming segments underperformed. Gross margin improved to 55%, but rising operating expenses limited profit gains. Despite a positive outlook for Q2, AMD's shares trade at a high 55x earnings multiple after a 200% rally, leading to a neutral investment stance.