AMD: Patience Is A Virtue, But Valuation Matters (Downgrade)

Despite outperforming consensus expectations for Q2 2026, AMD stock is taking a hit in after-hours session. Data Center segment drove results, now 58% of revenue, with robust growth and strategic AI partnerships poised to accelerate H2 2026 performance. Gross margin expanded to 56% and operating margin to 27%, supporting strong cash flow generation and bolstering net cash position to ~$10B.