$Advanced Micro Devices(AMD)$ Today's AMD drop feels more like a sentiment scare than a broken thesis. Bernstein reiterated Buy with a $650 target the same day the stock got hit. Still solid upside from here.
The big contracts didn't disappear because of one essay. OpenAI at 6 GW, Meta at 6 GW, and Anthropic with up to 2 GW plus the $5B investment are already signed multi-year deals. Those GPUs and Helios racks are still getting built.
Q2 data center revenue more than doubled, margins hit 56%, and they're still guiding data center to more than double again in 2027.
"Pacing the frontier" isn't shutting off demand. Inference, existing models, and agentic workloads still need a ton of silicon. AMD's EPYC CPUs even benefit if AI leans more general-purpose.
A 5-6% move on a weekend think piece just shakes out weak hands. For anyone who already believed the multi-year infrastructure story, this made the entry a little cheaper.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments