Summary

• Advanced Micro Devices, Inc. remains a Strong Buy, with recent growth and margin expansion validating last year’s bullish thesis.
• AMD’s valuation appears rich at a 99x forward P/E, but is justified by robust earnings growth and a PEG ratio of 1.51x.
• Aggressive server CPU TAM guidance (>35% CAGR to $120B by 2030) and first-mover advantage with TSMC’s 2nm Venice chip underpin AMD’s upside.
• Key risks include potential supply chain disruptions—especially helium shortages—and execution on supply commitments amid sector-wide volatility.

About this time last year, I was asked what my favorite AI stock was. I mentioned Advanced Micro Devices, Inc. (AMD) as the cheaper challenger to Nvidia (NVDA), with

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