Is AMD a good stock to buy? We came across a bullish thesis on Advanced Micro Devices, Inc. on Joe Gannon’s Substack by Gannon Capital. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.’s share was trading at $303.46 as of April 22nd. AMD’s trailing and forward P/E were 109.00 and 42.37 respectively according to Yahoo Finance.
Advanced Micro Devices (AMD) is a semiconductor company that has evolved from an underdog PC chipmaker into a central pillar of the global artificial intelligence infrastructure race. Under Dr. Lisa Su, the company pivoted toward high-performance computing, leveraging its chiplet architecture and TSMC manufacturing strategy to structurally close the gap with Intel while directly challenging Nvidia in AI accelerators.
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Its Data Center segment, led by EPYC CPUs and the MI300 Instinct GPUs, has become the core growth engine, capturing significant share in cloud workloads across AWS, Microsoft Azure, and Google Cloud as hyperscalers seek alternatives to Nvidia’s pricing power. Strategic acquisitions such as Xilinx, Pensando, and ZT Systems have transformed AMD into a full-stack infrastructure provider spanning CPUs, GPUs, networking, and embedded systems, reducing cyclicality and improving margin quality.
Meanwhile, partnerships with OpenAI, Microsoft, Meta, Oracle, and Sony validate AMD’s positioning as the critical “second source” to Nvidia in AI compute, as demand for diversified supply chains intensifies globally. Despite execution risks around software (ROCm) and supply constraints, AMD’s improving free cash flow, rising data center mix, and structural share gains in servers position it for a multi-year rerating as AI infrastructure spending expands.
Overall, AMD represents one of the most compelling structural growth stories in semiconductors, transitioning from a survival-driven challenger to a strategic enabler of AI workloads, with upside driven by accelerating GPU adoption, enterprise CPU share gains, and expanding hyperscaler dependence on a credible alternative to Nvidia’s ecosystem dominance in the long-term global infrastructure cycle ahead today.
Previously, we covered a bullish thesis on Advanced Micro Devices, Inc. (AMD) by StockOpine in May 2025, which highlighted strong data center growth, AI-driven demand, and expanding EPYC and Instinct adoption. AMD’s stock price has appreciated by approximately 163.90% since our coverage. Joe Gannon shares a similar view but emphasizes on AMD’s evolution into a full-stack AI infrastructure provider and its positioning as a strategic alternative to Nvidia.
Advanced Micro Devices, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 132 hedge fund portfolios held AMD at the end of the fourth quarter which was 115 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.
Disclosure: None.
