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AMD keeps Sell rating despite strong Data Center growth and optimistic revenue outlook.

Analyst Insights
09 Nov 2026, 18:54 WIB
Seeking Alpha
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Bearish
AMD keeps Sell rating despite strong Data Center growth and optimistic revenue outlook.

Advanced Micro Devices (AMD) maintains a Sell rating due to concerns over its free cash flow, which lags behind earnings and has fallen to 4% of revenue amid rising inventories and working capital needs. Additionally, potential dilution from AI partnership warrants and increased financial commitments add uncertainty to future earnings and shareholder returns. Despite strong growth in its Data Center business and positive revenue guidance for 2027, the analyst's valuation model estimates AMD's intrinsic value at $196.72 per share, about 56% below the current market price, suggesting the stock is overvalued and requires near-perfect execution to justify its price.

AMD trades at USD 500.92 on Pluang as of Nov 10, 2026 00:11 WIB, up 11.55% in one day. The stock's market cap is $736.46 billion, near its 52-week high of $649.42. Typical hold time for AMD on Pluang is 94 days, showing moderate investor interest despite valuation concerns.

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