This Analyst Was Right About Advanced Micro Devices (AMD)

Glen Kacher, Light Street Capital founder, said during a program on CNBC in November 2024 that Advanced Micro Devices Inc (NASDAQ:AMD) will be a “winner” in AI and the company’s “best days” in terms of AI exposure were ahead of it. When asked why he believed the company would be a top performer, here is what the analyst said at the time:

“ I think if you look at Amazon, Meta, or Microsoft, it’s very strategic for them to have a second source. They need to keep Nvidia’s pricing in check. Nvidia, to their credit, while prices and margins have gone up, have not taken advantage of their customers. They’ve profited from them greatly, but they’ve not exploited their market position. The buyers we’re talking about—hundreds of billions of dollars going into AI infrastructure—they need to make sure there’s a competitor. We’ve already seen the AI category for AMD growing to a $5 billion market for them over the next year.”

Over the past year, Advanced Micro Devices Inc (NASDAQ:AMD) shares have gained 36%. The stock is up 95% so far this year, thanks to the recent surge following its latest deal with OpenAI. AMD agreed to supply 6 gigawatts of compute capacity to OpenAI.

Macquarie Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:

 “Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures semiconductors, including central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions for various markets like gaming, data centers, and AI. The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”

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