AMD: The Low-Hanging Fruit Is Gone, But The Stock Is Still A Buy

AMD remains well-positioned for sustained growth, driven by robust AI compute demand and a rapidly expanding TAM through 2030. Q2 saw revenue grow to $11.5 billion, with data center segment growth accelerating to 107%. Margins also improved year-over-year. Q3 guidance calls for $13 billion in revenue and 56% gross margin, reflecting continued strong demand and cost efficiency. I reiterate my buy rating on AMD, as its multiyear growth outlook and strategic collaborations offset hedge fund sentiment and insider selling concerns.

In late May, I downgraded Advanced Micro Devices, Inc. ( AMD ) from a strong buy rating to just a buy rating. Despite accelerating growth in Q1 and a robust revenue outlook for Q2, the greatly expanded