3 REASONS $AMD EARNINGS REACTION WENT NEGATIVE 1. The stock is trading on 2027 AMD’s quarter was objectively strong but the stock is being valued on what AMD might look like once MI450 + rack-scale systems are in full production. When a stock is priced on a future inflection then anything that doesn’t directly pull that inflection closer tends to get discounted. Data center growth near 40% is impressive but it’s still below the 60% CAGR management is targeting longer term. 2. The real payoff is still gated on MI450 execution AMD’s AI story is now about MI450 + the Helios rack platform. Management is being explicit that this is the hinge point for AMD becoming a systems-level AI infrastructure player rather than a component supplier. That upside is large but it’s also back-half loaded into 2H2026 & 2027 & market is becoming less willing to underwrite long-dated ramps that depend on complex system deployments rather than incremental volume of existing products. 3. AI sentiment has shifted from “good news” to “prove the path” The AI trade is no longer in a phase where beats & guides are enough on their own. The market is less willing to pay today for revenue that is supposed to arrive in size a year or two out, especially when it depends on hyperscaler buildouts & capital-heavy system ramps. AMD showed that its core CPU + current-gen GPU engine is working but it also reinforced that the largest upside sits ahead. In a more fragile risk environment, that combination tends to produce sell-the-news reactions.