Advanced Micro Devices slipped 0.1% to $470.19 on Friday as investors positioned ahead of Nvidia’s August 26 earnings release, which is expected to influence valuations across the AI accelerator sector.
The chipmaker’s second-quarter revenue reached $11.5 billion, with data-center sales contributing approximately $6.7 billion. AMD also secured a strategic commitment from AI developer Anthropic, which agreed to purchase up to two gigawatts of MI450 capacity starting in 2027. In parallel, AMD disclosed plans to invest as much as $5 billion in Anthropic, contingent on deployment milestones.
The developments mark a significant step for AMD in competing with Nvidia’s dominance in high-performance AI workloads. However, analysts caution that execution risks remain. The company’s valuation reflects high expectations, with shares trading 72.58% above its $272.45 GF Value estimate, signaling potential overvaluation ahead of tangible revenue delivery from its AI initiatives.
AMD’s performance will be closely scrutinized following Nvidia’s earnings, which could set a new benchmark for valuation and growth assumptions across the AI chip ecosystem.
