AMD Surges Past Nvidia and Broadcom in Valuation

Advanced Micro Devices (AMD) has achieved record-breaking Q2 results, with revenue soaring by 50% year-over-year to $11.54 billion.

The growth is largely driven by the strength of AMD's data center business, which has led management to double its projected CPU total addressable market (TAM) expectations to $220 billion by 2030.

This represents a 50% compound annual growth rate (CAGR), making it an attractive prospect for investors.

However, despite robust earnings per share (EPS) growth forecasts of 58.3% CAGR through 2028, AMD's price-to-earnings (P/E) ratio stands at a premium of 72x, surpassing its peers and historical averages.