• AMD’s Data Center revenue surged 115% YoY in Q2 2024, driven by Instinct MI300 AI accelerators and EPYC processors, leading to raised revenue guidance and a BUY rating.

• Client segment revenue grew 49% YoY, fueled by strong Ryzen processor demand and Zen 5 sales, prompting an increased revenue forecast for 2024 and 2025.

• Gaming segment revenue fell 59% YoY due to weak console demand, resulting in a lowered revenue forecast for this segment through 2025.

• AMD’s acquisitions of Silo AI and ZT Systems aim to strengthen its AI and data center market position, enhancing long-term growth prospects.

Did you even read it?

Down 6% YTD and a market cap of 1/12 of their only competitor isn’t “doing great.”

Firstly, Nvidia isn’t AMD’s only competitor. There’s Intel, Qualcomm, and a litany of other companies that compete with Xilinx, who AMD purchased.

Secondly, only looking at the stock price and treating that as gospel shouldn’t be how you’re assessing whether a company is doing well or not.

GameStop stock exploded, it wasn’t because they were doing well. Nvidia became the most valuable company on earth by market cap - do you really think they’re that valuable, more than Microsoft or Apple, or is it a bubble? Tesla stock went crazy because Elon kept chatting nonsense about how all their cars would be driverless by 2018. Etc. shit, go back enough, tulip stocks were worth more than all of the textiles industry if you only care about market cap.

The stock market is not rational. Don’t judge the health of a company purely based on their stock price.