We might call it ‘portfolio rebalancing’ but in reality, many of us are ‘trading’ and calling it ‘investing’.

I know this because I’ve done it myself.

What type of investor are you?

There are three different investor types, and most people mix them up without realising it:

• Trading: short-term, timing the market, high risk. You’re betting on price movements over weeks or months. Transaction costs matter. Emotions matter more.

• Investing: long-term, compounding, moderate risk. You’re buying pieces of businesses and letting them grow over 10+ years. Time in the market beats timing the market.

• Wealth preservation: capital protection, low risk. You’re trying to keep what you have, not grow it aggressively. Cash, bonds, and safe assets dominate.

The problem? Well, as I said earlier, lots of people say they’re investing but are actually trading.

Learn from my mistakes

In October last year, I sold my AMD (NASDAQ: AMD) shares, locking in a decent profit. I felt pretty good about myself for the following six months as the price slowly declined.

But in early March this year, the stock started rallying. It’s now up over 100% since I sold. That’s a harsh lesson.

I panicked about heavy tech concentration and AI fears leading to a crash. That’s trading behaviour.

In reality, AMD is doing fine. Revenue in Q1 2026 dropped slightly from the previous quarter, but overall is up 34.97% year-on-year (yoy). Earnings are doing even better, up 123.35% yoy.

Its balance sheet is solid as a rock, with $64.46bn in equity against a meagre $3.87bn in debt. And free cash flow of $8.57bn is even ahead of big names like Tesla, McDonald’s and GE Aerospace.

But rapid growth brings risk. With a price-to-earnings (P/E) ratio of 164, the company can’t risk even a mild disappointment.

Even though earnings are expected to grow, some analyst estimates put the stock at 12% overvalued. So I might have already missed out on the best gains.

But that doesn’t change the long-term story. The share price might slow this year, but for growth-focused investors with a 10–20 year outlook, it’s still worth considering.

Why time, not timing, matters

In 2025, UK funds suffered £11.1bn in outflows from retail investors even though the FTSE 100 surged 21.5%. They panic-sold and missed the rebound.

In reality, trying to sell high and buy low is pointless. Research from Capital Group revealed that investing on the worst market day for 20 years vs investing on the best day resulted in almost no difference:

That’s why staying invested in the market matters more than trying to time the best moment to buy or sell.

Over the past 82 years, 100% of 10-year periods in the S&P 500 have been positive. But exclude just the 10 best market days from any period and returns decrease by up to 50%. That’s the risk of being out of the market for justa. short time.

The stock market rewards consistency, not cleverness. Pick your game based on your personality, time, and goals – and stick to it.

Should you invest £5,000 in Advanced Micro Devices right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Advanced Micro Devices made the list?

Mark Hartley does not hold any positions in the companies mentioned.

The post The stock market game you’re actually playing (and why you might be losing) appeared first on The Twelfth Magpie.

Now, I still see a lot of opportunities in the AI space today. However, if we were to see a market pullback in the near future, there could be even better opportunities to capitalise on.

At the heart of the agentic AI boom

One AI stock that could be worth considering in a market pullback is Advanced Micro Devices (NASDAQ: AMD). It has soared recently and I don’t think it’s smart to think about chasing it yet.

Why this company? Because it’s a global leader in central processing units (CPUs).

And these are used heavily in agentic AI. Without them, AI agents get stuck, leaving even the fastest graphics processing units (GPUs) idling while waiting for their next instructions.

Note that as businesses roll out agentic AI applications, the ratio of GPUs to CPUs in data centres is compressing rapidly. It used to be 1:4 or 1:8, however right now, it’s moving towards 1:1.

Now, at today’s share price of $430, the valuation is high — the price-to-earnings (P/E) ratio is near 60. That’s risky to me – if sales growth suddenly slows, the share price could take a hit.

If the stock was to fall back to near $300, however, it could be worth a look.

New data centre products

Another CPU stock that could be worth considering in a market pullback is Arm Holdings (NASDAQ: ARM). It’s known as a powerhouse in smartphone CPUs (its technology can be found in 99% of the world’s smartphones). However, recently it has been pivoting towards data centre CPUs.

For example, in March it released a new product designed specifically for agentic AI. And it sounds like demand is very high.

Like AMD, this stock has shot up recently (to near $250). As a result of this move, the valuation is high – the P/E ratio is about 100.

I don’t like the risk/reward skew at that earnings multiple (again there’s no room for error) – I think the high valuation could hamper future returns. If the stock was to come back to say $170 though, it could be worth checking out.

Protecting the world against AI

Finally, CrowdStrike (NASDAQ: CRWD) is worth highlighting. It’s widely regarded as the global leader in the cybersecurity space.

After a period of underperformance earlier in the year, this stock has ripped higher in recent months. Since late March, it has climbed from $350 to $650.

Why? Because investors have realised that this company isn’t going to be made obsolete by Anthropic.

A key catalyst here was ‘Project Glasswing’, which was announced in April. Here, Anthropic is partnering with CrowdStrike and a bunch of other companies to secure critical software for the AI era.

At today’s share price, CrowdStrike sports a P/E ratio of 130. I’m not a buyer at that multiple as I see risks around earnings (investors will be looking for super strong guidance) and profit taking.

If the stock was to fall back to around $450 to $500 though, it could be worth considering. That’s where I’ll be keen to top up my position.

Should you invest £5,000 in Advanced Micro Devices right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Advanced Micro Devices made the list?

Edward Sheldon has positions in Nvidia, Alphabet, Broadcom, and CrowdStrike.

The post 3 exceptional AI stocks to consider buying in the next market pullback appeared first on The Twelfth Magpie.

Can it keep climbing? Plenty of Wall Street analysts appear to believe so.

At the heart of the AI boom

Earlier this month, AMD posted its earnings for the second quarter of its 2026 financial year. And they were very strong. For the quarter, revenue hit $10.25bn, up 38% year on year, with Data Centre revenue jumping 57% to $5.8bn. Non-GAAP net income was $2,265m versus $1,566m a year earlier.

In the earnings release, AMD chair and CEO Dr Lisa Su made it clear that the chip company is benefitting from the AI infrastructure buildout.

“We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Centre now the primary driver of our revenue and earnings growth,” she said.

Looking ahead, Su said she expects server growth to “accelerate meaningfully” as the company scales supply to meet demand. She added that customer engagement around its new MI450 Series AI GPUs and its Helios racks is “strengthening”, with leading customer forecasts exceeding the company’s initial expectations.

“We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators.”

AMD chair and CEO Dr Lisa Su

New price targets for AMD

Now, since the results, Wall Street analysts have been scrambling to raise their price targets for AMD and we’ve seen lots of increases. Firms that have targets of $500 or higher include Cantor Fitzgerald, Wells Fargo, Barclays, Baird (its target’s $625!), Evercore ISI, Bernstein SocGen, TD Cowen, and KeyBanc.

That $500 target price is roughly 18% above the current share price. In other words, analysts expect the rally to continue.

Am I buying here?

Now, I’ve been bullish on AMD for a long time. Frustratingly though, I’ve never pulled the trigger and bought it for my portfolio. So will I buy it now in light of the bullish broker sentiment? I don’t think so.

I am keen to get this chip stock into my portfolio at some point because the company really is at the heart of the AI boom with its GPUs and CPUs (demand for CPUs is sky-high right now). But I can’t bring myself to buy after its huge rise this year (it’s up about 100% year to date).

After that kind of pop, the risk/reward set-up isn’t very favourable, in my view. If market conditions change, we could see significant profit taking.

It’s worth noting that the stock doesn’t actually look that expensive if we look at next year’s earnings forecast. With analysts expecting earnings per share of $13 for 2027, the price-to-earnings (P/E) ratio’s only about 33.

Having said that, rival Nvidia trades at around 20 times next year’s earnings forecast. And to my mind, Nvidia’s still very much the superior company here.

So I’m going to keep AMD stock on my watchlist for now. If it pulls back to $300, I’ll be interested in buying it for my portfolio.

Edward Sheldon has positions in Nvidia. The Twelfth Magpie has recommended Advanced Micro Devices and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor and Hidden Winners. Here at The Twelfth Magpie we believe that considering a diverse range of insights makes us better investors.

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AMD, as it’s better known, is by no means the best performing stock in the AI-focused sector, but it’s still done very well. So what’s happened?

A competitor of note

Hyperscale customers — companies such as Alphabet, Meta and Amazon who are building huge AI data centres — view AMD as a credible second source to Nvidia for data-centre accelerators.

Its market share varies by product, but on the important opportunity — GPUs for data centres — it only holds a single digit share. More broadly across chips, it appears to have low double digit market share. But remember, this is a huge market. And this has fed through to the financial data.

In Q3 2025, AMD’s data-centre revenue jumped 34% quarter-on-quarter to $4.3bn, while operating income surged 793% year-on-year to $1.1bn. The MI300 chip has been rapidly adopted since its launch in late 2023.

At the same time, Nvidia’s ongoing supply constraints meant cloud customers were actively looking for alternatives. Even modest penetration by AMD into the accelerator market carries enormous profit leverage because GPU margins are far higher than those of traditional CPUs.

Looking forward, the upcoming MI400 series, launching in 2026 with variants optimised for both training and inference, is widely anticipated.

Realistically, it’s not going to challenge Nvidia’s GPU dominance, but the AI infrastructure segment’s expected to grow at a 42% CAGR through 2029. Any market share gains are huge when translated to earnings.

Is it good value?

AMD’s valuation remains relatively attractive but it depends on how you interpret the metrics. It trades at 51 times forward earnings for FY2025, the fiscal year just ended. The figure for the forward 12 months is closer to 32 times.

Medium-term earnings growth’s actually at 45% per annum. With this in mind, we’d come to a price-to-earnings-to-growth (PEG) ratio significantly below one and far below the sector average of 1.7.

The best comparison however, is with Nvidia. It’s trading at 39.5 times FY2026 earnings (FY2026 ending in March). The figure for the forward 12 months is closer to 24.4 times.

Meanwhile, the medium-term earnings growth is at 37% per annum. This also gives us a deeply undervalued PEG ratio when using the 12-month price-to-earnings.

So on valuation, it’s actually pretty close to its peer. They’re both around 0.6-0.7 on the PEG ratio, which typically indicates good value.

The bottom line

Personally, my preference is still for Nvidia. The company has fingers in so many AI pies that its long-term value proposition exists far beyond the sale of hardware. It will undoubtedly play a leading role in the rollout of robotics, for example.

AMD remains an attractive challenger, but its opportunity set is narrower, and for most large-scale AI workloads Nvidia’s GPUs are still the default choice.

I believe both stocks are worth considering.

The post £10,000 invested in AMD stock 6 months ago is now worth… appeared first on The Twelfth Magpie.

Now, the stock does look a little expensive after its recent pop. However, Wall Street analysts seem to think it can go much higher.

A big deal

The OpenAI partnership’s certainly a big deal for AMD. Under the deal, the chip designer will provide its high-powered ‘Instinct’ GPUs to the artificial intelligence (AI) company as it expands in the years ahead, starting with an initial one gigawatt deployment (in the second half of 2026), and working up to six gigawatts over time.

For AMD, the deal’s likely to deliver “tens of billions” of dollars in revenue for the company and be “highly accretive” to earnings, according to CFO Jean Hu. And over the next four years, the ripple effect of the deal could generate more than $100bn in new revenue, according to management.

As for OpenAI, the deal will help it accelerate its infrastructure buildout. “This partnership is a major step in building the compute capacity needed to realise AI’s full potential,” said OpenAI CEO Sam Altman.

Note that as part of the agreement, the chip company has issued OpenAI a warrant for up to 160m AMD shares, structured to vest as specific milestones are achieved. In other words, OpenAI has the option to become a major shareholder in AMD in the future.

New share price forecasts

Now, I was expecting to see some share price target increases after this deal was announced. But I have to say I’m amazed at the magnitude of some of the increases.

Just look at these new forecasts:

Clearly, the deal’s a game-changer for the company, if Wall Street analysts are to be believed. Quite a few analysts see the chip stock now going to $300 (about 42% above its current share price).

Worth a look today?

Is the stock worth considering given this bullish sentiment? I think it probably is, assuming one has a long-term investment horizon.

As I said above, it looks expensive today. Currently, the forward-looking price-to-earnings (P/E) ratio’s about 52 (falling to about 35 using next year’s earnings forecast).

However, if the OpenAI deal brings in tens of billions in new revenue, earnings are likely to rise sharply in the years ahead. And this earnings growth could lower the valuation and propel the stock higher.

I’ll point out that AMD chips are used in other industries (eg home computing), so the company isn’t a pure play on AI. And weakness in these other industries could offset the potential growth from AI.

Overall though, I see quite a bit of long-term growth potential. So I think the stock’s worth a look right now.

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Details of the deal

AMD and OpenAI just announced a multi-year, multi-generation strategic partnership in which AMD will supply AI chips (GPUs) to OpenAI. In terms of size, OpenAI will deploy up to six gigawatts of AMD’s Instinct GPUs over several years. The initial deployment is set to start next year.

As part of the agreement, AMD has issued warrants to OpenAI for up to 160m shares, which is about 10% of AMD. These warrants vest based on deployment milestones and AMD’s share price performance.

Although projections for the financial benefit are not easy to gauge, AMD expects the deal to generate tens of billions in annual revenue. Over the course of the next four years, it expects it to come close to $100bn in new revenue.

Why it’s great for AMD

I feel there are many reasons why this is good for the company in the long run. To begin with, the revenue opportunity is huge and comes as a key way of validating the business going forward.

Until now, Nvidia has dominated AI infrastructure. This deal helps AMD diversify its customer base, gain credibility, and show that it can compete at scale in AI.

The use of stock warrants is interesting too. OpenAI gets the option to acquire up to 10% of AMD via these warrants, so it has skin in the game. That ensures it’s more likely to use AMD’s tech over time, which helps AMD with sustained demand. Further, the details of the warrants linked to stock performance mean AMD management will want the share price to increase as well. I only see this as a positive for other investors.

Finally, the size of the initial stock move yesterday is another sign of how well people are taking the partnership. OpenAI is the most valuable private company in the world, so getting closer to it should help AMD to ride higher as both companies grow.

Pause for thought

Despite the optimism, there are still risks. The jump in the stock means the price-to-earnings ratio for AMD is an eye-watering 117. This is very high and so could mean the stock is currently overvalued and at risk of a sharp fall if results disappoint.

In terms of the deal, delivering this amount of gigawatt infrastructure is hard. There are many factors involved that could delay or reduce expected revenue based on the rollout plans.

But even though it’s wise for investors to keep a level head with such deals, I still think it’s a stock with growth potential that they can consider.

The post Here’s why the OpenAI deal could be huge for AMD stock long term appeared first on The Twelfth Magpie.

The two said they’ve signed a letter of intent, with Nvidia planning to invest up to $100bn in OpenAI. The aim is to provide at least 10 gigawatts of power to advance the next generation of AI models. Nvidia CEO Jensen Huang called it the “biggest AI infrastructure project in history.”

A 4% rise on the day might not sound like much for a stock that’s already up 1,350% over the past five years. But it’s enough to nudge the market cap close to a staggering $4.5trn.

AI stock boost

This deal will inevitably brighten the enthusiasm of long-term Nvidia bulls. But it could also add impetus for AI-led growth for a number of other stocks.

One of those is Micron Technology (NASDAQ: MU), due to post full-year results later Tuesday (23 September). Micron makes a range of semiconductor memory devices, including high-bandwidth memory. That’s in great demand for AI processing, and it’s helped send Micron earnings soaring over the course of the past year.

Valuation is my main concern with a stock like this, driven by a technology-led bull run. And in this case we’re looking at a scary trailing price-to-earnings (P/E) ratio of 137 for 2024.

Still, analysts expect that to fall dramatically for the 2025 year just ended, with most suggesting the high 20s. If forecasts are right, it could even fall under 15 in the next couple of years.

We must consider the intense competition in this sector, with a large number of global companies pumping out huge volumes of memory chips. What if someone else comes out with the next-generation technology to capture the AI imagination?

Even more chips

There’s a bigger AI valuation premium at Advanced Micro Devices (NASDAQ:AMD), with a lofty forward P/E up at 67. That’s a fair bit ahead of even Nvidia’s predicted multiple, which stands at 42. Hmm, AMD suddenly makes Nvidia look cheap.

AMD has recently signed a deal with IBM to work on developing quantum computing, and that gave the stock price a boost. I’m not holding my breath waiting for the quantum revolution, mind. It’s been promised for so long now, but really hasn’t lived up to the hype yet.

Yes, it might well herald the next computing revolution. I just wonder if investors might be paying a bit too much today for jam tomorrow.

Still, I can’t deny that AMD could hold significant potential for AI-led growth. And unlike so many of the start-ups, AMD joins Nvidia as a highly-profitable company with strong cash flow. And forecasts do show that P/E coming down fairly quickly.

What to do?

US consulting firm Bain & Company estimates AI companies will need around $2trn in combined revenue to fund their planned expansion to meet predicted demand. But they project a shortfall of $800bn. And that worries me.

I do think investors could do well to consider buying all three of these stocks for the long term. But the possibility of big short-term falls keeps me away, at least for now — I remember the dotcom bubble all too clearly.

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Up around 9.5% so far, the S&P 500 may not match the eye-watering 25% gains of both 2023 and 2024, but momentum’s still on the side of equities. 

AMD surged on news that the chipmaker is joining forces with IBM to develop ‘quantum-centric supercomputing‘. The deal marks a major strategic step, signalling that AMD’s keen not only to fight for a bigger slice of the artificial intelligence (AI) and data-centre markets, but also to stake a claim in quantum. 

With IBM as a partner, that ambition suddenly looks more achievable.

The excitement did not stop there. Truist Securities lifted its rating on AMD from Hold to Buy, while also hiking its price target from $173 to $213. Investors clearly liked the story, and the stock rallied strongly. 

Add to this a supportive macro backdrop. With Federal Reserve chair Jerome Powell signalling that rate cuts could be imminent in light of job market concerns, the case for growth tech stocks looks compelling once more. Lower rates mean cheaper financing for data centre expansion, a trend that could directly benefit AMD.

Financial momentum

The numbers also suggest that AMD’s in better shape than some assume. The stock’s already up 36% in 2025, but interestingly, valuation multiples have fallen sharply since their frothy 2023 levels. This suggests that earnings are beginning to catch up with expectations.

The firm’s net margin has doubled to 6.4%, underpinned by improving revenue and profit growth. While it fell short of earnings expectations in both 2023 and 2024, it’s beaten revenue forecasts for five consecutive years – a sign that demand for its products remains strong.

The balance sheet‘s improving as well. Debt dropped from $4.73bn in the first quarter of 2025 to $3.89bn in the second, while free cash flow more than doubled over the same period. 

That kind of financial discipline offers reassurance, particularly in a capital-intensive sector like semiconductors.

A few caveats

Of course, it’s never all plain sailing. AMD still faces intense competition from Nvidia, which dominates the graphics processing unit (GPU) market. Plus, it has the money and clout to take on anything AMD throws its way.

Internal developments have also raised eyebrows. Chief accounting officer Philip Carter resigned recently, while CEO Lisa Su sold 225,000 shares – moves that some investors may interpret as potential red flags.

An emerging contender

So is AMD stock worth considering? I think so. The IBM partnership looks like a genuine attempt to shape the future of computing, while improving margins and cash flow suggest the business has momentum. Add in the prospect of lower interest rates and a fresh analyst upgrade, and the story’s attractive.

That said, competition in chips is brutal, and insider share sales should never be ignored. As ever, investors are best served by diversification. 

For those with an appetite for US tech though, AMD stock could represent an exciting opportunity – one that’s finally aligning innovation with stronger financials.

The post Quantum leap: will AMD stock surge as IBM partnership revives its roadmap? appeared first on The Twelfth Magpie.

To boost things further, the major chip maker has reportedly agreed a deal with the US government to sell its H20 AI chips to China — subject to a 15% levy on all related revenue. While this allows it to maintain access to a lucrative market despite export controls, the levy could compress margins. The financial impact will depend on sales volumes, but strong demand in China may still make the venture profitable.

Impressive financials aside, there are growing signs that a recovering rival could challenge Nvidia’s dominance.

Competing AI chips

In contrast to Nvidia’s massive global stature, AMD (NASDAQ: AMD) is a relatively small player with a market capitalisation of around $300bn. Over the past five years, the AMD share price has gained a respectable but modest 125%, dwarfed by Nvidia’s 1,470% leap.

Yet the tables appear to be turning.

AMD’s sales growth is up 27% year on year, and earnings per share (EPS) are up a staggering 109%. More importantly, the firm is ploughing capital into research and development — its R&D spend now represents 23.55% of revenue, among the highest levels for any tech company on the Nasdaq 100.

Investor excitement has centred around AMD’s upcoming MI450 chip, the company’s first rack-scale, 72-processor AI server system. It sets out to go toe-to-toe with Nvidia’s Rubin architecture. Some analysts initially speculated that Nvidia may delay Rubin to rebalance the competition, but it has firmly denied this, insisting it remains on track for a 2026 release.

Even so, AMD is already gaining traction. A recent event saw the launch of its MI350 and MI400 series chips, including the Helios AI server, and it has secured OpenAI as a collaborator in its MI450 design.

But all this R&D investment brings risk, as it stands to gain or lose based on its MI450 performance. Should the chip underdeliver or fail to gain traction, the share price may suffer just as severely as it recovered this year.

Meanwhile, the threat of geopolitical upheaval is still a notable concern. The US trade tariffs situation remains uncertain and could upset Asia-Pacific supply chains, potentially hurting both AMD and Nvidia’s profits.

No slowdown in AI demand

Demand for AI infrastructure doesn’t show any signs of slowing in the near future. Foxconn, the world’s largest contract electronics manufacturer and a major assembler of Nvidia servers, recently reported strong Q2 results, with profit up 27% to $1.48bn. This result underscores just how hot demand remains.

From a portfolio standpoint, Nvidia remains a formidable and promising stock but so too is AMD, particularly if the MI450 delivers.

Given the sky-high demand, I see no reason why both companies can’t profit. Nvidia appears to lead on scale and innovation, while AMD is emerging as a viable alternative. 

For investors looking for exposure to the AI boom, both stocks are worth considering, in my book.

The post AI wars: is the Nvidia share price under threat from rival AMD? appeared first on The Twelfth Magpie.

Combined with an already high valuation, even small disappointments triggered notable share price declines. Those losses continued until April, but it’s since made a spectacular recovery, climbing 25% in June alone.

I decided to find out what’s driving the recovery — and if it’s sustainable.

A tech-driven market recovery

Investor sentiment across global market’s been improving lately, helped by easing tensions in the Middle East and the Federal Reserve’s increasingly dovish policy outlook. Against this backdrop, the S&P 500 has surged to new highs, largely driven by leading tech and communications stocks.

And AMD hasn’t been left behind. The company’s hoping to ride the wave of exploding demand for graphics processing units (GPUs), with plans to channel sales momentum into higher data centre revenues. Recent forecasts from analysts indicate we could be on the cusp of a massive GPU boom, driven by AI demands, machine learning and hyperscale cloud adoption.

Its new Ryzen 9 9950 X3D and Radeon 9070 series are key growth drivers, while data centres are adopting its fifth-gen EPYC Turin processors and Instinct AI accelerators.

But AMD’s not alone. Nvidia and Broadcom continue to dominate the AI market, posing a real threat to its ambitions. While it recently formed a strategic alliance with HCLTech to help bolster its enterprise AI offerings, execution risk remains high. It will need to capture a meaningful share of the market to justify the training and onboarding costs associated with the partnership.

Financially sound

Looking at the latest numbers, AMD’s financial position looks solid. Its market-cap of £233bn’s supported by a healthy operating cash flow of £3.46bn. It has £57.8bn in equity and minor debt of £4.73bn, translating to a low debt-to-equity ratio of just 0.08.

But the stock’s looking a bit overvalued. The shares trade on a price-to-earnings (P/E) ratio of 105.4, in line with Broadcom but roughly double that of Nvidia. Its price-to-book (P/B) ratio of 4.02’s lower than its key rivals, but it still signals a significant premium to the share price.

Profitability also lags peers, with a net margin of just 8% and return on equity (ROE) of 3.9%. For AMD to command these high multiples sustainably, investors will want to see these figures improve — particularly as it scales data centre and AI-focused revenues.

Final thoughts

Overall, AMD appears to be recovering well and could return to stronger profitability if it manages to secure a sizeable slice of the booming GPU market. But there’s an undercurrent of caution around valuations and the risk of supply chain hiccups if geopolitical tensions flare up again.

For now, given the stretched valuation and relative underperformance on profitability, I’m comfortable holding my shares — but I won’t be adding to my position just yet.

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