AMD: Catching Up In AI Doesn't Make It Undervalued

Summary

• AMD has outperformed the market since our sell recommendation, driven by strong profits and a $6 billion buyback.
• Despite recent gains and robust financials, AMD remains overvalued relative to its fundamentals and growth prospects.
• The company's ability to generate meaningful shareholder returns is limited at current valuation levels, even with ongoing buybacks.
• I maintain a cautious outlook on AMD, emphasizing valuation risks and limited upside for investors at this stage.

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Analyst’s Disclosure:I/we have a beneficial short position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.