- AMD became the market's newest $1 trillion company on Sept 21, with the stock up 187% year to date at the time of crossing.
- Shares fell 2.4% in pre-market trading to $599.7, pulling back from a 52-week high of $624.69 set earlier in the week.
- The sell-off followed a 'buy the rumor, sell the news' unwind after U.S. officials indicated chip export controls were not on the summit's preliminary agenda.
- A prominent analyst downgraded AMD to Hold on Sept 22, arguing AI-driven growth is already priced in and consensus CY2027 estimates are too optimistic.
- AMD is positioning its chiplet GPUs and ROCm software for inference, a market Bloomberg Intelligence expects to reach roughly double the training market by 2032.
- AMD's GPU supply deals with OpenAI, Meta Platforms and Anthropic total up to 14 gigawatts, with the two largest each estimated above $100 billion and warrant issuance of up to a 10% stake.
Quotes
“The artificial intelligence (AI) boom helped mint its newest $1 trillion company, with Advanced Micro Devices (AMD -0.45%) crossing the threshold on Sept. 21.”
“AMD will provide both companies with up to 6 gigawatts of its latest GPUs in deals estimated at over $100 billion each.”
“Advanced Micro Devices (NASDAQ: AMD) stock declined 2.4% in pre-open trading to $599.7, reversing course after hitting a 52-week high of $624.69 earlier in the week.”
“U.S. officials reportedly indicated that chip export controls were not on the preliminary agenda.”