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AMD keeps Buy rating despite 80x forward P/E and 30% rally, driven by strong Data Center growth and AI potential.

Analyst Insights
29 Sep 2026
Seeking Alpha
View Source
Bullish
AMD keeps Buy rating despite 80x forward P/E and 30% rally, driven by strong Data Center growth and AI potential.

Advanced Micro Devices (AMD) maintains a Buy rating despite its high 80x forward price-to-earnings ratio and a 30% stock rally last month. The company's Data Center segment is expected to more than double its revenue year-over-year next year, signaling strong growth momentum. Management anticipates significantly exceeding its $20 earnings per share target within the strategic timeframe, implying a 75% compound annual growth rate through fiscal year 2028. This growth, supported by an early-stage AI spending cycle, justifies the high valuation as the company's terminal value could increase due to higher long-term growth, free cash flow, and margins.

AMD shares have gained momentum with a 30% rally last month, and on Pluang, the stock trades at USD 611.68, up 0.63% for the day. The market cap stands at $992.33 billion, reflecting strong investor interest despite a high forward P/E ratio. These figures are current as of Sep 29, 2026, 23:51 WIB.

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