AMD’s stock soars as data center revenue jumps 57%

Semis have just started

This is the most insane run in a month with all the other “ai” hardware plays… during a war too.

This will end very badly

how long until AMD announces acquisition of NVDA in a half stock, half cash deal

All the NVDA holders switching over to AMD now

This semi rally is insane but so are these numbers. Seems just off. Not saying books ae cooked but they just seem off or perhaps all the future buying front loaded perhaps due to assumed increase in upcoming costs.

It’s a beautiful thing

So jealous. I just have $Meta which is just making $AMD, $MU, $INTC holders rich instead of me

Maybe I’m dumb but isn’t there going to be a point at which demand stops increasing? Tech companies will probably continue to guide higher in the next few quarters but what happens when they cannot guide higher?

This is more ridiculous than the Dot-com bubble. Intel, AMD and all of these stocks are beyond the Dot-com bubble. They are in their own bracket.

“AMD adds $120 billion in market cap after beating revenue guidance by $700 million”

Just look at the similarities. Here is my response to someone else👇🏻

Using a historical 276x “average” dot-com P/E to prove today’s market isn’t in a bubble is complete nonsense. That 276x average is an unweighted stat completely warped by a single massive outlier – Yahoo!, which was trading at over 1,000x its trailing earnings at the peak. Yahoo is the sole reason that average is so high, and using it as a benchmark completely misses how equity bubbles actually form.

The market as a whole doesn’t have to be in a macro-bubble for individual, systemic micro-bubbles to exist. Look at what is happening right now with individual stocks like AMD and Intel.

The fact that AMD just added $120 billion in market cap after beating revenue guidance by a mere $700 million is the exact psychological decoupling from reality that happened during the dot-com peak. The market just priced that incremental chunk of fresh quarterly revenue at an astronomical 171x multiple.

When you strip out the Yahoo anomaly and look at the actual forward and normal P/E ratios of the foundational tech giants in 2000—the “blue chips” people thought were safe. AMD is trading in the exact same orbit today:

• AMD Today: Trades at an absurd trailing P/E of ~136x and a forward P/E of ~51x.

• The 2000 Peak Reality: Microsoft sat at ~70x–75x, Intel was at ~45x, Oracle was at ~110x, and Cisco was at ~135x.

AMD has officially reached the valuation heights that proved utterly unsustainable for Cisco and Microsoft for over a decade after the crash. Calling this anything other than overvalued and an individual bubble is fucking ridiculous.

We are seeing severe sector concentration distorting everything. Look at Intel, Micron, SanDisk, and AMD over the past month and how the semiconductor index has practically engineered the market’s gains by itself. Semiconductors have ballooned to an unprecedented 14% of the S&P 500’s total market weight, shifting from a cyclical hardware play into a hyper-inflated infrastructure layer.

The data proves how extreme this narrow sector distortion is: while the broader S&P 500 returned a standard ~10% for the quarter, the semiconductor sector skyrocketed by over 51% over the exact same period. Wall Street analysts estimate that this single group alone is driving roughly 40% of the S&P 500’s total year-over-year earnings growth, creating a massive index illusion where passive fund flows are hyper-inflating hardware makers.

If you want a final reality check on what happens when a hardware “backbone” stock trades at these exact multiples, look at [Cisco Systems]. In March 2000, Cisco was hailed as the indispensable king of the internet infrastructure boom, trading at a 135x trailing P/E. When the music stopped, Cisco suffered a catastrophic 89.2% peak-to-trough drawdown. It took Cisco nearly 26 years just to claw its way back to its split-adjusted March 2000 intraday high.

The broader market looks stable on the surface, but underneath, a handful of semiconductor stocks are carrying the entire weight of the financial system on multi-hundred-billion-dollar multiple expansions that defy basic math. History shows that when these individual infrastructure bubbles pop, the correction is brutal, and “great fundamentals” won’t save a stock trading at 130 times earnings.

Blow off top