{"id":856667,"date":"2026-09-22T14:24:12","date_gmt":"2026-09-22T14:24:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/856667\/"},"modified":"2026-09-22T14:24:12","modified_gmt":"2026-09-22T14:24:12","slug":"why-amds-new-1-trillion-valuation-makes-perfect-sense","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/856667\/","title":{"rendered":"Why AMD’s new $1 trillion valuation makes perfect sense"},"content":{"rendered":"\n

AMD (AMD<\/a>) CEO Lisu Su has been crushing it at a chip company that almost went bust when she walked in the door as a top executive in 2012. <\/p>\n

Since assuming the CEO position in 2014, Su \u2014 with her trademark humility and love for tech \u2014 has completely transformed the company into Nvidia’s (NVDA<\/a>) strongest rival. She has closed major deals, from the acquisition of Xilinx to a partnership with Meta (META<\/a>) that could see the social media outfit own up to 10% of the company in the future. <\/p>\n

While AMD’s stock has sizzled under Su, it appears this is the year the market is truly giving her her due. <\/p>\n

AMD’s market cap crossed the $1 trillion mark<\/a> for the first time on Monday, with shares surging 9.9% amid a broader tech-stock rally. The stock is up an impressive 185% year to date, easily surpassing the 22% gain for rival Nvidia. <\/p>\n

The chipmaker has had win after win this year, fueling its stock price. <\/p>\n

AMD beat Wall Street expectations across the board for the second quarter earlier this month, posting record non-GAAP earnings per share of $1.66 versus consensus estimates of $1.61. Total revenue surged 50% year over year to a record $11.5 billion, clearing analyst projections of approximately $11.34 billion. <\/p>\n

The strong top- and bottom-line performance was fueled by the company’s Data Center segment. Revenue more than doubled year over year to $6.7 billion behind robust demand for EPYC server CPUs and Instinct AI accelerators. <\/p>\n

AMD projected second-half 2026 server CPU revenue to grow 80% year over year and 70% in 2027. It expects data center revenues to more than double in 2027, with AI graphics processing units (GPUs) growing well over 100%.\u00a0 <\/p>\n

AMD also unveiled its next-generation AI chips, headlined by the Instinct MI450 Series GPUs and the 6th Gen EPYC Venice CPUs. The new chips are designed to power AMD’s new Helios rack-scale AI systems<\/a>, which combine GPUs, CPUs, networking, and software into an integrated platform for training and running large AI models.\u00a0 <\/p>\n

The product announcement came alongside two important new deals. <\/p>\n

AMD said Microsoft (MSFT<\/a>) will deploy Helios across Azure AI services beginning in the second half of 2026. <\/p>\n

It also announced a major tie-up with Anthropic (ANTH.PVT<\/a>), significantly expanding its push to challenge Nvidia in the AI infrastructure market.\u00a0 <\/p>\n

Anthropic plans to deploy up to 2 gigawatts of the Instinct MI450 GPUs in its Helios system beginning in the first half of 2027 \u2014 a deal that could be worth tens of billions of dollars over time. AMD also committed to invest up to $5 billion in Anthropic, marking one of the chipmaker’s largest strategic investments ever. <\/p>\n","protected":false},"excerpt":{"rendered":"AMD (AMD) CEO Lisu Su has been crushing it at a chip company that almost went bust when…\n","protected":false},"author":2,"featured_media":856668,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,4321],"class_list":["post-856667","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-nvidia"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/856667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=856667"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/856667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/856668"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=856667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=856667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=856667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}