AMD Slides as Nasdaq 100 Sell-Off Exposes 100 P/E Valuation
AMD slipped in the nasdaq 100 this week as semiconductor stocks sold off after Broadcom's quarterly report lacked the wow factor traders wanted. The move left Advanced Micro Devices drifting from the all-time high it set in early June, even though there was no company-specific news behind the pullback.
AMD revenue rose 38%
AMD revenue rose 38% year over year to $10.3 billion in the first quarter of 2026, and data center revenue jumped 57% to $5.8 billion. That segment now accounts for more than half of total revenue, giving the company a much larger base to absorb any slowdown in its personal-computer and gaming businesses.
Lisa Su said on the earnings call, "These results mark a clear inflection in our growth trajectory and a structural shift in our business." AMD also guided for about $11.2 billion in current-quarter revenue, which implies 46% year-over-year growth. For a stock that had already climbed to record levels, the numbers left the valuation exposed to any sign that growth is cooling.
Broadcom's report hit chips
The broad sell-off began after Broadcom's latest quarterly report fell short of the reaction investors had hoped for, and semiconductor stocks took the hit. AMD got swept up with the group even without its own news, a reminder that chip names can trade together when the sector loses momentum.
6 gigawatts is the scale of AMD's agreed deployment with Meta Platforms, and the first wave will use custom MI450 silicon. AMD's next-generation Instinct MI450 accelerators and Helios rack systems are set to begin ramping in the second half of the year, but the buildout can also pressure profit margins as production scales.
AMD above 100 earnings
100 is the trailing non-GAAP price-to-earnings ratio AMD fetched at the time of the article, a level that leaves little margin for disappointment. Memory and component costs could weigh on the personal-computer and gaming business in the back half of the year, so the next stretch of results will need to show that the data center shift can keep carrying the company.
If that growth holds, the stock has room to justify its premium; if margins slip as MI450 ramps, the gap between expectations and results can close quickly. AMD's own figures now put the burden on execution, not on sector sympathy.
