Bullish Thesis: Why AMD Stock Could Soar by Year-End 2025

If you haven`t bought AMD before the previous rally:

What to consider now:
1. AI Tailwinds Are Accelerating
AMD is finally gaining serious traction in the AI GPU race. Its MI300X accelerator chips are being adopted by big names like Microsoft, Meta, and Oracle for data center AI workloads. While NVIDIA is still dominant, AMD is expected to grab 10–20% of the AI GPU market share by 2025, according to industry estimates. That’s a multibillion-dollar opportunity.

The MI300X already passed $1B in revenue within its first quarters.

AI server TAM (total addressable market) is expected to grow to $400B by 2027 — AMD is positioning itself aggressively to carve out its slice.

2. Valuation Looks Reasonable vs Peers
AMD trades at a forward P/E around 40, significantly below Nvidia (which trades over 60x) despite similar growth projections for the next 2 years.

Revenue expected to grow over 15–20% YoY in 2025.

Gross margins expanding as high-performance chips dominate the mix.

3. Diversified Growth: Beyond AI


Gaming segment (PlayStation 5 and Xbox Series X chips) remains strong.
Embedded segment from Xilinx acquisition continues to generate solid cash flow.
Client CPU business is rebounding as the PC market stabilizes.

4. Strong Management and Execution
CEO Lisa Su is widely respected for turning AMD around and guiding the company through major innovations and acquisitions (Xilinx, Pensando). Execution has remained consistent, especially in delivering cutting-edge performance-per-watt chips.

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