Dave Jimenez
Advanced Micro Devices (NASDAQ:AMD) designs processors and graphics chips that power servers, cloud computing and artificial intelligence workloads, and the company just posted a data center quarter big enough to eclipse Intel's. And just out of curiosity, investors comparing the two chipmakers are now asking whether that crossover marks a permanent shift in who controls the server market.
AMD shares closed at 557.89 dollars, up 2.04% on the day, giving the company a market cap of 909.70 billion dollars. The stock sits near the top of its 52 week range of 310.00 to 584.73 dollars, a run that has taken it well above where it traded a year ago.
| Price | 557.89 USD |
|---|---|
| Day change | +11.17 (+2.04%) |
| 52-week range | 310.0 – 584.73 |
| Market cap | $909.70B |
| P/E ratio | 181.13 |
| EPS (ttm) | 3.08 |
| RSI (14) | 57.55 |
| Volume | 20,701,126 |
The Quarter That Flipped the Data Center Hierarchy
AMD's data center segment brought in 5.8 billion dollars in the first quarter of 2026, up 57% year over year, and that figure edged out what Intel's data center and AI group generated over the same stretch. Total company revenue rose 38% to 10.3 billion dollars, with data center now standing as AMD's largest and fastest growing line of business.
Profitability kept pace with the top line. Non GAAP earnings per share came in at 1.37 dollars, while GAAP earnings landed at 0.84 dollars per share on 1.4 billion dollars of net income, with gross margin above 50%. That combination of rapid growth and expanding profit is unusual enough that it explains much of the stock's momentum over the past year.
One nuance matters here. AMD's data center revenue blends its Instinct AI accelerators with its EPYC server processors, so the crossover with Intel is not purely a server chip story. In server CPUs alone, AMD still ships fewer units than Intel does. Yet AMD now captures close to half of all server CPU revenue while shipping roughly a third of the units, which tells you customers are paying a premium for its higher end parts rather than simply buying more of them.
AMD Valuation, Momentum (RSI) and Yield
At 557.89 dollars, AMD trades at a trailing P/E of 181.13, a figure skewed by GAAP earnings that still lag the adjusted numbers investors tend to focus on. On a forward basis the multiple compresses to roughly 59 times expected earnings, still a rich price for a semiconductor name by historical standards. The stock pays no dividend, so the entire return case rests on price appreciation tied to continued data center execution.
The relative strength index sits at 57.55, a reading that signals modest upward momentum without pushing into overbought territory above 70. That leaves some technical room before the stock would be considered stretched on a short term basis, even after a run that has taken shares up more than 250% over the past year and near the top of their 52 week band.
The bull case is straightforward: AMD's data center segment is compounding at 57% annually, gross margin exceeds 50%, and both halves of the business, EPYC processors for cloud providers and Instinct accelerators for AI workloads, are expanding at once. As long as that mix holds, the profit engine keeps strengthening and can justify a premium multiple.
The bear case centers on valuation risk. A forward P/E near 59 already prices in a great deal of continued momentum. Any slowdown in AI accelerator demand or a stumble in EPYC share gains could compress that multiple quickly, and with no dividend cushioning returns, the stock's total return depends entirely on the growth narrative staying intact.
Intel's Cheaper but Complicated Position
Intel's data center and AI group still generated 5.1 billion dollars in the first quarter, up 22% year over year, healthy growth by most standards. Intel also remains the larger company by total revenue, with more than 50 billion dollars in sales over the trailing year against AMD's roughly 37 billion dollars, which is part of what makes losing the data center lead sting.
The complication is everything surrounding that growth. Intel is unprofitable on a trailing basis, weighed down by a foundry unit that brought in less than 200 million dollars from outside customers last quarter and lost money doing it. Shares fell about 21% in a single week on reports that Intel's 18A manufacturing process may not reach profitable yields until 2027. Intel trades at more than 100 times expected earnings, a multiple that looks cheap relative to AMD only because current earnings are so depressed.
Comparing the Two Data Center Businesses
| Metric | AMD | Intel |
|---|---|---|
| Q1 2026 data center revenue | 5.8 billion dollars | 5.1 billion dollars |
| Data center growth (year over year) | 57% | 22% |
| Total trailing revenue | ~37 billion dollars | 50+ billion dollars |
| Profitability | Profitable, margin above 50% | Unprofitable on trailing basis |
| Forward earnings multiple | ~59x | 100x+ |
Does AMD's Lead in the Data Center Hold Up?
The numbers make a clear case that AMD's data center business is winning share in dollar terms even where it trails in unit shipments, and the margin profile shows that win is translating into real profit rather than just top line growth. Intel's counterargument rests on being the larger, cheaper company with a foundry turnaround still in progress, but that turnaround keeps slipping, most recently toward 2027 for profitable 18A yields.
Whether AMD's premium valuation holds depends on whether EPYC and Instinct can keep compounding at anywhere near the current 38% total revenue growth rate. A slowdown would test a stock priced for continued dominance, while any acceleration in Intel's foundry economics could narrow the gap faster than the market currently expects.
Frequently Asked Questions
How to regain curiosity?
In an investing context, regaining curiosity about a stock usually means revisiting the underlying business fundamentals, such as revenue growth, margins and competitive position, rather than focusing solely on price action.
What triggers curiosity?
Sharp moves in a stock's price, an earnings surprise, or a shift in competitive standing, like AMD's data center revenue overtaking Intel's, tend to be what draws renewed attention to a company.
How to develop curiosity?
Reading quarterly earnings reports, comparing a company's metrics against its peers, and tracking how a business's segments evolve over multiple quarters are practical ways to build a deeper understanding of a stock.
Is curiosity still active?
Interest in the AMD versus Intel data center comparison remains active given AMD's 57% year over year growth in that segment and the ongoing questions about Intel's manufacturing timeline.
What can curiosity lead to?
Digging into the data, such as AMD's 181.13 P/E, its 557.89 dollar share price and its position near the top of its 52 week range, can lead to a clearer picture of how much future growth is already priced into the stock.
Carlos Dixon
