Tiger Global has swapped large stakes in Nvidia, Microsoft, and Alphabet for positions in AMD, positioning the chipmaker as the marginal AI accelerator play rather than betting on incumbents already priced for growth.
AMD's Data Center revenue surged 107% year-over-year in Q2 to $6.7 billion, now representing 58% of total revenue, and CEO Lisa Su told investors the company expects data center segment revenue to more than double year-over-year in 2027.
At $514.39, the stock has climbed 184.27% over the past year, but the move reflects Tiger Global's view that AMD offers better risk-reward than stocks already baking in AI upside.
What happened
Tiger Global, a major investment firm led by Chase Coleman, sold stakes in Nvidia, Microsoft, and Alphabet while buying AMD and SpaceX. AMD shares have risen 140.19% year to date and 184.27% over the past year, driven by a Data Center segment now representing 58% of total revenue—up from 42% a year ago.
Why it matters
AMD is chasing Nvidia in AI accelerators while gaining server CPU market share. Q2 revenue hit $11.5 billion (up 50% year over year), with Data Center revenue of $6.7 billion (up 107%). CEO Lisa Su told investors AMD now expects data center segment revenue to more than double year-over-year in 2027. Tiger Global's move signals AMD offers better forward risk-reward than mega-cap incumbents already priced for perfection.
What to watch
AMD's critical tests are Q3 execution against its $13 billion revenue guidance and confirmation that Helios (a partnership with Anthropic to deploy up to 2 gigawatts of MI450 GPUs) shipments begin as planned in Q3 2026 and ramp through Q4 into 2027. The stock trades at $514.39 against an average analyst target of $612.84.
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Tiger Global's portfolio shift reflects a tactical view that AMD has become the more compelling AI accelerator bet relative to the mega-cap incumbents. The timing aligns with AMD's acceleration in data center revenue—which grew 107% year-over-year in Q2 to $6.7 billion—and a strategic pivot toward large-scale GPU deployments. Lisa Su's commitment to more than doubling data center revenue year-over-year in 2027, coupled with the Anthropic partnership to deploy up to 2 gigawatts of MI450 GPUs in Helios, anchors the bull case in concrete expansion plans rather than speculation.
Yet AMD's valuation has already captured much of this upside. The stock trades at a forward P/E of 69 and a price-to-sales ratio of 20—multiples that price in flawless execution. The company beat Q2 expectations by 3.06% but still fell 7.04% that day, signaling that investors are watching for proof points rather than simply extrapolating growth. Q3 2026 Helios shipments and sustained 56% data center gross margins are the gatekeepers: any slip could reset the valuation quickly, as the Q2 earnings reaction demonstrated. AMD's 184.27% gain over the past year leaves limited room for execution missteps, meaning the margin of safety depends almost entirely on whether Q3 and Q4 2026 deliver the guidance and ramp Tim su promised.
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