#Gate股票畅聊季 Is AMD worth buying now?

This is the most practical question. Many investors may think: If AMD’s revenue could grow 80% next year, isn’t buying now a no-brainer?
Unfortunately, that’s not how the stock market works. A stock’s price is never based only on today. It also reflects the market’s expectations for the future.
After this earnings report was released, AMD’s after-hours share price briefly approached $500. Suppose AMD generates $95 billion in revenue in 2027 and adjusted earnings per share reach around $17. A $500 share price would then correspond to roughly 29 to 30 times forward earnings. For a company that could grow 80%, a 30x P/E isn’t particularly outrageous. But the problem is that this valuation already assumes AMD will be very successful. If its revenue is only $85 billion next year, profit margins come in below expectations, and the market isn’t willing to assign it such a high valuation, the stock will naturally come under pressure. Conversely, if AMD’s revenue exceeds $100 billion and profit margins continue to improve, then today’s $500 may not be the end of the story.
So the conclusion on AMD is simple: its fundamentals are improving rapidly, but that doesn’t necessarily make it a cheap stock. Many people constantly conflate these two ideas.
A better company isn’t necessarily worth buying at any price. How much a company can earn in the future and how much you’re willing to pay for it today are two different things. That’s precisely what makes investing so difficult.

Over the next few years, the AI field may produce more and more surprising products. Today it’s Muse; tomorrow, a new AI agent could emerge. A model may just have become the industry leader, only to be overtaken by another a few months later. Competition at the application layer will intensify. But amid all these changes, one thing is worth watching over the long term.
As long as AI becomes more useful, demand for computing could continue to grow. Of course, improvements in algorithmic efficiency could also reduce the computing power required per task, and growing demand doesn’t necessarily mean chip spending will rise in tandem. But judging by the investment plans of several tech giants, they clearly aren’t ready to stop this computing arms race. Nvidia has already shown just how profitable selling computing power can be.
AMD is now trying to become the second supplier with genuine global scale. Its biggest difference from Nvidia is that Nvidia needs to defend the enormous market it already has. AMD, by contrast, only needs to keep expanding its share. The former’s challenge is how to stay ahead. The latter’s opportunity is to keep growing from a relatively small base.
So I believe what’s truly worth anticipating from AMD isn’t how much its revenue grows in any one quarter, but whether it can secure a stable second-place position in the AI computing market over the next few years. Once it establishes that position, it may no longer be just a challenger. It could become an indispensable part of AI infrastructure. Of course, from an investment perspective, the market has already begun to price in this possibility. What AMD needs to do next isn’t to keep telling a grand story, but to turn that story into reality, one step at a time, through orders, profits, and cash flow. After all, new stars emerge in the AI world every day. But the companies truly worth watching over the long term are often those that can keep making money no matter who takes center stage. Muse may be just the beginning of the AI era. AMD’s aim is to become a long-term beneficiary of this era. $AMD