Advanced Micro Devices, Inc. (AMD): A Bull Case Theory

We came across a bullish thesis on Advanced Micro Devices, Inc. (AMD) on Business Model Mastery’s Substack. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc. (AMD)’s share was trading at $116.19 as of 6^th June. AMD’s trailing and forward P/E were 84.81 and 29.15 respectively according to Yahoo Finance.

Advanced Micro Devices (AMD) has quietly become an indispensable force across modern computing, spanning AI, gaming, embedded systems, and data centers. Its structural edge begins with chiplet architecture—an innovation that enables better yields, modular scalability, and cost-efficiency. This design powers nearly all EPYC CPUs and Ryzen desktop chips, putting AMD 2–3 years ahead of Intel and Nvidia in real-world deployment.

AMD’s presence in data center AI accelerated sharply with its Instinct MI300X GPUs, fueling 94% year-over-year growth and winning hyperscaler adoption for large language model training. On the edge, AMD leads the x86 market with its Ryzen AI 300 series—first-to-market PC chips with dedicated NPUs for low-power, on-device AI inference.

In gaming, AMD dominates with custom SoCs in virtually every major console, including the PlayStation 5 Pro and Xbox Series X/S, locking in multi-year revenue cycles. This broad market reach is anchored by a growing suite of software platforms like ROCm, Vitis, and Adrenalin, which entrench developers and OEMs through ecosystem lock-in and reduced switching costs. The company’s diversified customer base—from hyperscalers and OEMs to industrial and aerospace—provides stability unmatched by peers like Nvidia, whose revenue skews heavily toward AI.

AMD’s strategic decision to focus on platform design while outsourcing manufacturing to TSMC allows it to scale faster and more flexibly. Its deep IP portfolio across CPUs, GPUs, and adaptive SoCs, coupled with a chiplet-based development model, gives it a repeatable advantage across markets. AMD’s strategy is not built on noise, but on necessity—it doesn’t just sell chips, it embeds itself into the future of computing.

Previously, we covered a bullish thesis on AMD from StockOpine, which highlighted the company’s Q1 FY2025 performance—driven by 57% growth in its Data Center segment and strong demand for Instinct AI accelerators and EPYC CPUs. The bullish case emphasized AMD’s accelerating AI relevance, Ryzen CPU gains, and strategic acquisition of ZT Systems, despite some softness in gaming and embedded. The stock has seen an approximate 1% gain since then. Together, the two theses position AMD as both a near-term AI growth beneficiary and a structurally advantaged long-term enabler of the AI-native compute stack.

Advanced Micro Devices, Inc. (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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.