AMD’s Strong Earnings Meet Muted Market Response Amid AI Bubble Concerns

Advanced Micro Devices delivered record quarterly results and a bullish outlook fueled by data center chip demand, yet investor enthusiasm remained tempered. Shares edged up merely 2% to $255, reflecting broader skepticism in the tech sector after recent sell-offs.

Wall Street analysts largely maintain optimism, with multiple firms raising price targets. However, the muted reaction underscores growing unease about rich valuations in the semiconductor space—particularly for companies perceived as secondary players to AI leader Nvidia. Oppenheimer's neutral stance highlights these concerns, citing AMD's position as a "second horse supplier" in the AI chip race.

The disconnect between fundamentals and market performance signals deepening questions about whether AI-driven rallies have created unsustainable valuations. While AMD's execution remains strong, the chipmaker now faces heightened scrutiny about its ability to carve out a dominant position in the AI infrastructure boom.