AMD: This Selloff Isn't Enough (Downgrade)

I downgrade Advanced Micro Devices, Inc. to Hold due to valuation and intensifying competition from Nvidia and Arm Holdings. AMD's strong recent earnings and upgraded FY2027 revenue guidance are offset by concerns over balance sheet complexity and potential dilution. Despite robust growth prospects, AMD trades at a premium forward P/E versus Nvidia, with the risk of further multiple compression if sector sentiment weakens.