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

We came across a bullish thesis on Advanced Micro Devices, Inc. on Arya’s Substack’s by Arya. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.’s share was trading at $166.55 as of August 19^th. AMD’s trailing and forward P/E were 99.73 and 42.73 respectively according to Yahoo Finance.

AMD is entering a new phase of growth, driven by its expanding presence in data centers and accelerating momentum in AI computing. Nearly half of AMD’s revenue now stems from server CPUs and GPUs, where it continues to take share in an increasingly consolidated market. The MI300 series has emerged as a critical product cycle, gaining adoption from hyperscalers, cloud providers, and enterprises, and positioning AMD as the most credible challenger to Nvidia in AI accelerators. This shift is not only increasing AMD’s total addressable market but also lifting margins, with AI-driven revenues set to exceed market expectations in 2025. Meanwhile, the PC and gaming segments, once headwinds, are showing signs of stabilization, smoothing volatility across the portfolio.

AMD’s differentiated strategy lies in its ability to integrate CPUs, GPUs, and adaptive accelerators into unified platforms, strengthened by the Xilinx acquisition. This positions the company at the forefront of heterogeneous computing, which is becoming central to AI and high-performance workloads. Under CEO Lisa Su, execution has been consistently strong, with disciplined R&D investment and effective supply chain management sustaining competitive credibility. While the company recently reset guidance due to inventory digestion in the industry, the long-term drivers remain intact and underappreciated by the market.

The stock is currently mispriced relative to the earnings power of AMD’s AI and data-center businesses. With stabilizing legacy segments, growing AI adoption, and upside from next-generation product ramps, AMD offers an attractive risk/reward profile. In the best case, accelerating AI demand could unlock a major rerating in the shares.

Previously, we covered a bullish thesis on Advanced Micro Devices, Inc. (AMD) by StockOpine in May 2025, which highlighted strong Q1 results, AI accelerator demand, and the ZT Systems acquisition. The stock has appreciated about 45% since then as the thesis played out with Data Center growth. The thesis still stands, while Arya shares a similar view but emphasizes AMD’s positioning as Nvidia’s main challenger.

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Disclosure: None.