AMD: Great Q3 Earnings, But 70% Downside Is Not Unrealistic

Advanced Micro Devices, Inc. delivered exceptional Q3 results, with 45% revenue growth and Data Center revenue nearly doubling year-over-year. Despite strong operational execution, I assign AMD stock a Sell rating due to an unsustainably high valuation and significant dilution risk from OpenAI and Meta warrants. AMD's investment thesis is now entirely tied to Data Center growth, requiring flawless multi-year execution and substantial free cash flow expansion to justify current prices.