Advanced Micro Devices (AMD): A Bull Case Theory

We came across a bullish thesis on Advanced Micro Devices on Rebound Capital’s Substack. As of 5ᵗʰ July, Advanced Micro Devices’s share was trading at $137.91. AMD’s trailing and forward P/E were 100.66 and 27.04 respectively according to Yahoo Finance.

Advanced Micro Devices, Inc. (AMD): Jim Cramer Shares Major Catalyst That Could Change Everything!

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices (AMD) is a semiconductor company that designs high-performance processors and graphics cards for servers and PCs. The company’s stock has been in a deep drawdown, having lost more than half its value from April 2024 to April 2025. This decline is in contrast to its competitor, NVIDIA Corporation (NVDA), which has risen 26% over the last year. AMD’s recent Q2′ 2025 earnings report showed a 59% drop in gaming hardware revenue due to a fall in demand for semi-custom chips used in PlayStation and Xbox. However, the company’s data center sales rose 57% in the first quarter, suggesting that AMD’s AI chips may finally be gaining traction.

The company has launched its new Instinct MI350 series, which claims to have 60% more memory than Nvidia chips, and can create 40% more generated tokens for every dollar spent. This could force AI data centers to diversify away from Nvidia sooner than expected. AMD also announced a $6 billion buyback program and a string of quick acquisitions focused on AI. These developments have contributed to a 57% increase in the company’s stock price from its bottom in April.

AMD’s rebound catalysts are promising, with potential for significant upside. The company’s AI chips are gaining traction, and its new product launches could lead to increased market share. Additionally, the buyback program and acquisitions focused on AI demonstrate the company’s commitment to growth. While there are risks associated with the stock, the potential rewards make AMD an attractive investment opportunity.

Previously, we covered a bullish thesis on Advanced Micro Devices by Business Model Mastery in June 2025, which highlighted the company’s chiplet architecture advantage, AI momentum, and strategic breadth. The company’s stock price has appreciated by approximately 19% since our coverage. This is because the thesis played out. This is because AMD’s structural strengths continue to anchor growth. Rebound Capital shares a similar view but emphasizes AMD’s product launches and $6 billion buyback as key upside drivers.

Advanced Micro Devices (AMD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held AMD at the end of the first quarter, which was 96 in the previous quarter. While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.