Bullish Valuation Potential and Long-Term Multi-Bagger Thesis for AMD

about 1 month ago

Jose Najarro

"Now, the first reason that I'm really excited about AMD is just the valuation potential on if it executes correctly. If we remember AMD had their financial analyst day on November of 2025th. So a few months ago they gave a crazy projection that within the next three to five years this company's earnings per share would be over $20. Now, either if they get this within the next 3 years or within the next 5 years, it would be a massive growth opportunity for my portfolio. I believe it would be a massive outperformer to the overall market because let's say within the next 5 years this company gets an earnings per share of roughly $20 and right now the median for AMD's forward PE ratio trades at around 30. That would put AMD at a stock price of roughly $600. Quick, easy math, quick ability for me to see this being an outperformer within the next 3 to 5 years."

The speaker highlights AMD's growth potential based on its earnings projection of over $20 per share in the next 3 to 5 years. Using a forward PE ratio near 30, he calculates a potential stock price of approximately $600, positioning AMD as a long-term multi-bagger opportunity. His bullish view is underpinned by AMD's valuation potential, innovative product roadmap, and its capacity to capitalize on both the CPU and AI chip markets.

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