AMD shares gained 19% this week after Google Cloud picked its server processors for new computing systems and AI cloud provider CoreWeave raised its spending outlook. The stock trades at a trailing P/E ratio of 117.6.
AMD stock rallied 19% this week, driven by a host-infrastructure deal with Google Cloud and growing data center demand. The shares closed Friday at $534.06, about 19% above the Nov. 6 close.
Over the same period, the S&P 500 rose 2.5%, and the Nasdaq-100 was up 2.4%.
Google Cloud and CoreWeave lift the rally
Gains built after CoreWeave reported strong quarterly results and raised its 2026 capital expenditure guidance to $37 billion to $39 billion, lifting the lower end of the range. Motley Fool says that spending plan reassures investors that tech companies keep buying data center processors.
At the same time, Google Cloud announced that AMD's 5th Gen EPYC server processors will power the host infrastructure for its new confidential computing systems. The article says this reinforces AMD's market share gains in enterprise computing.
In the quarter that ended Sept. 26, 2026, the company generated $13.4 billion in revenue, up 45% year over year, while data center sales nearly doubled to $8.5 billion.
A high valuation leaves little room for error
AMD trades at a trailing price-to-earnings ratio of 117.6, which Motley Fool says reflects high market expectations for sustained earnings growth.
Nvidia news also shook the week. AMD was up as much as 30% at its peak during the week, and the article says AMD could be viewed as a beneficiary of Nvidia's problems.
Investors will watch Nvidia's upcoming quarterly report and AMD's next earnings release on Feb. 2, 2027. The source says any slowdown in hyperscaler capital budgets could quickly compress AMD's elevated valuation multiple.
Source: The Motley Fool
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