Key Takeaways
- AMD shares are up 10% today after a 17% plunge on fears Democrats’ midterm wins will slow the data center buildout.
- AMD posted record revenue of $13.4 billion on Tuesday and guided to about $17 billion for the fourth quarter.
- Intel, Broadcom and Arista Networks are rebounding too.
- The main risk: AMD’s 2027 earnings, which analysts expect to more than double, depend on data centers getting built on time.
Advanced Micro Devices (AMD) stock is up 10% today. That wins back part of Thursday’s 17% plunge.
Intel (INTC), Broadcom (AVGO) and Arista Networks (ANET) are bouncing back too.
Democrats’ midterm sweep set off the rout because investors feared tighter rules for AI data centers. But Gavekal’s U.S. chief economist Will Denyer said even if newly elected governors make building harder, “There will always be some state and some county who is willing to welcome data centers.”
AMD just had a record quarter
AMD’s Data Center sales rose 97% to $8.5 billion last quarter, and total revenue hit a record $13.4 billion.
Analysts expect AMD’s normalized EPS to more than double in 2027:
AMD’s fourth-quarter guide came in above analysts’ own forecasts, so they have more reason to raise those numbers than to cut them.
The buildout hasn’t slowed yet
Intel, up 7%, says the demand is still there. Its data center sales jumped 78% to $7.3 billion last quarter. CEO Lip-Bu Tan said its “immediate priority is to unlock additional supply to meet extraordinary demand for our Xeon family.”
So do the companies that build those data centers. Super Micro Computer (SMCI), up 6%, now expects $72 billion to $82 billion of sales in its fiscal year ending June 2027. Arista, up [X%], grew third-quarter revenue 58.5%, its fastest since its IPO.
TIKR tracks 53 analysts on AMD. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on AMD, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See AMD’s Analyst Ratings
AMD isn’t priced for delays
AMD has said its 2027 outlook depends on customers bringing data centers online in time. New rules could slow exactly that.
Yet AMD trades at 42x forward earnings. That’s above its five-year average of 35x but below its 67x June peak:
At today’s price, it’s even higher.
Broadcom, up 2%, is the cheaper way into the same AI budgets at 19x. But analysts expect its EPS to grow 67% in its fiscal 2027, against AMD’s 110%. Investors pay up for that gap.
Today’s bounce looks right to me: Congress can’t touch a fourth quarter AMD is already shipping. But AMD needs 2027 to arrive on time, and its fourth-quarter report, likely in early February, is the next test.
So what is AMD stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
