AMD posts strong Q1 with 57% Data Center growth but valuation concerns lead to downgrade to Hold.

Advanced Micro Devices (AMD) reported strong first-quarter results, highlighted by a 57% year-over-year growth in its Data Center segment and improved gross margins by 3 percentage points. Despite this operational strength and disciplined expense management, AMD's valuation has become stretched, with a forward P/E of 30x compared to Nvidia's 17.6x. Given AMD's slower growth relative to Nvidia and higher valuation, the analyst downgraded AMD to Hold, suggesting Nvidia is currently a more attractive investment option for portfolio rotation.