AMD: What I'm Watching Into The August 4 Earnings Print

Advanced Micro Devices is rated Buy, with fair value at $580, supported by a robust server-CPU franchise and contracted AI accelerator demand. AMD’s server-CPU business is a high-margin, share-gaining engine, with TAM doubled to $120B+ by 2030 and 70%+ revenue growth guided for Q2. Contracted 12GW Instinct pipeline (Meta, OpenAI) and operating leverage de-risk 2027 earnings ramp, making the forward multiple less risky than it appears. Key risks include gross margin dropping below 55%, Helios delays, hyperscaler capex reductions, and potential dilution from the Meta warrant. Advanced Micro Devices, Inc. (AMD) is a Buy for me, with fair value at about $580, in the range of $555 to $600, but at about $500 when I am writing this on July 16.