Summary

• AMD (AMD) is positioned for 15-20% upside as it justifies its premium valuation amid surging AI and enterprise demand.
• Data Center, comprising 48% of revenue, and major client buildouts from OpenAI and Meta drive structural sales and profitability inflection.
• FY25 saw 34% YoY sales growth to $34.6B, gross margin near 50%, and strong $6.7B free cash flow, supported by a robust net cash balance.
• Valuation targets $544.17/share (16.7% upside) using a 15x EV/EBITDA multiple, reflecting sustained growth, margin expansion, and capital allocation discipline.

Thesis

AMD (AMD) has traded at a premium to peers like Nvidia and Broadcom for a long time, owing to an air of skepticism surrounding its ability to effectively compete with such giants of the industry. However, that opinion is changing, and

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