AMD Stock Is Crashing After Earnings. Here's Everything You Need To Know

Couch Investor•Aug 5, 2026

Summary

Couch Investor analyzes AMD's latest earnings report, noting that the company beat expectations on both revenue and earnings per share. Couch Investor explains that the market's negative reaction is likely due to the stock being up over 100% year-to-date and trading at a high forward price-to-earnings ratio of over 50x. Couch Investor emphasizes that the major growth acceleration is expected to occur in the second half of 2026 and throughout 2027 with the ramp-up of the MI400 and MI500 series chips.

AMD: Couch Investor highlights the 107% year-over-year growth in the data center segment and record server CPU sales. Couch Investor points out that management expects to exceed its target of $20 in annual earnings per share within the next three to five years. However, Couch Investor is personally not buying more at these levels, preferring to let the business grow into its current valuation.

NVIDIA: Couch Investor compares AMD's valuation to NVIDIA, noting that NVIDIA appears undervalued with a forward PE of approximately 21x. Couch Investor argues that NVIDIA is growing faster and generating more significant dollar-amount increases despite its larger size. Couch Investor suggests that investors might find NVIDIA a more compelling value play in the current semiconductor landscape.

Palantir and Reddit: Couch Investor briefly mentions these stocks as recent additions to their personal portfolio. Couch Investor states that the valuations for these companies made more sense recently compared to adding to an AMD position at current prices. Couch Investor is prioritizing these opportunities or maintaining cash rather than chasing AMD after its triple-digit run.

Mentioned Stocks

NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Couch Investor argues that NVIDIA is undervalued compared to AMD, trading at a forward PE of 21.2x despite faster growth rates. Couch Investor notes that NVIDIA produces massive year-over-year growth even with a much larger revenue base. Couch Investor suggests it may be a better alternative for investors concerned about AMD's premium valuation.

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AMD

Sentiment: HOLD

Reasoning: Couch Investor notes that AMD beat earnings but is trading at a high forward PE of over 50x. Couch Investor highlights that the company expects to exceed $20 EPS in the next 3-5 years, but the current stock price has already baked in a lot of growth. Couch Investor states they are not buying more at these prices and will hold their current position.

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PLTR

Sentiment: BUYAction: BOUGHT

Reasoning: Couch Investor explicitly mentions having bought more Palantir recently because the valuation made more sense to them than buying more AMD at current levels.

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RDDT

Sentiment: BUYAction: BOUGHT

Reasoning: Couch Investor states that they have recently purchased shares of Reddit, finding the valuation to be a more attractive opportunity than increasing their stake in AMD at its current price.

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