Advanced Micro Devices crossed the $1 trillion market-capitalization threshold in September, becoming the thirteenth U.S. public company to do so after a 190 percent share-price gain in 2026 through September 25. The milestone reflects explosive demand for its artificial intelligence accelerators, but the valuation math remains stubborn: the stock trades at 109 times adjusted trailing earnings, nearly four times Nvidia's multiple.
The AI rack is winning orders
AMD's MI450 graphics processor, when paired with the Helios rack, delivers up to 15 percent more performance and 30 percent better energy efficiency than competing systems, according to the company. That specification has secured commitments from OpenAI and Meta Platforms to deploy six gigawatts of computing capacity on AMD silicon over the next several years, starting with the MI450 and Helios. Anthropic and Microsoft have also signed on for the same configuration. The MI500 series, slated to begin shipping in 2027, is projected by Chief Executive Officer Lisa Su to deliver 2,000 times the performance of the original MI300X.
Data center revenue doubled in the June quarter
The data center segment generated a record $6.7 billion in the second quarter ended June 30, up 107 percent from the year-earlier period and accounting for more than half of AMD's $11.5 billion in total revenue. Su has told shareholders she expects data center sales to more than double again in 2027, citing a total addressable market that could reach $1.4 trillion by 2030. The argument is that each generation of GPU lowers the cost of running AI models, which in turn fuels more demand for the next generation.
The multiple is the obstacle
Wall Street's consensus estimate, compiled by Yahoo Finance, puts 2027 adjusted earnings at $15.58 per share. At the current share price that implies a forward price-to-earnings ratio of 40.3, still well above Nvidia's trailing multiple of 28.3. For AMD to reach a $2 trillion market capitalization within the next 18 months, the stock would need to roughly double while earnings grow into that valuation. At 109 times trailing earnings, the market has already priced in a lot of the flywheel Su describes.