AMD: Accelerating Revenue Growth Ahead

Summary:

  • Advanced Micro Devices, Inc. is positioned as a challenger to Nvidia in the data center AI chip market, with a promising long-term growth outlook.
  • Q2 results showed 115% YoY growth in data center revenue, while other segments faced headwinds, impacting overall growth.
  • AMD’s Q3 guidance indicates 16% YoY revenue growth, driven by AI and stabilization in gaming and embedded segments.
  • Despite the high valuation, AMD’s solid financial performance and growth prospects make it a buy for long-term investors.

AMD Ryzen 9 AM5 on top of a maze of orange energy board circuits, orthographic view, 3D rendering

Javier Lizarazo Guerra

Investment Thesis

The main Advanced Micro Devices, Inc. (AMD) thesis is as a challenger to Nvidia (NVDA) in the lucrative market for data center AI chips. The stock price has been decreasing towards


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