AMD Strategic AI Partnership and Buy Signal
"Next up is AMD. AMD has been an absolute runner and is cheaper than Nvidia on a valuation basis, making it a very strong buy right now for continued momentum. The company recently announced a multigenerational strategic agreement with OpenAI, deploying 6 gigawatts of AMD GPU power starting with the Instinct Mi450 series. This non-exclusive deal places AMD firmly inside the AI ecosystem, and with AIGPU demand already sold out through 2025, there is significant upside potential. I think AMD is poised for a substantial revenue boost in 2026, making it a compelling pick."
The speaker highlights AMD's strategic AI partnership with OpenAI and competitive valuation compared to Nvidia, calling it a strong buy for its potential revenue acceleration and expanded role in the AI ecosystem.
AMD's Progress and OpenAI Deal Implications
"I mean, we’ve been talking about AMD at $100 for the last couple of months and now they’re getting the recognition they deserve with major shipments of MI450 orders announced by Oracle. On one hand, the OpenAI-related deal offers up to a 10% equity play if targets are met, with potential milestones culminating at a $600 valuation threshold. While this deal isn’t going to send AMD to a trillion overnight, the jump in investor sentiment following these announcements is clear. It’s exciting to see AMD being acknowledged on the inference and software sides as well."
The panel highlights AMD’s recent catalysts, including MI450 shipments and the OpenAI-related equity arrangement. Although price targets like a $600 milestone are discussed, the overall tone remains cautiously optimistic, driven by both product recognition and evolving software capabilities.
Potential Buy on AMD Pullback
"I think the entire space is going to continue to climb. Um, if you're looking for a price, maybe if it pulls back to 212-220, that would be an area I would like to potentially get in. Um, if they do have a pullback, maybe halfway through next month, they could pull back."
The speaker expresses a bullish view on AMD, suggesting that a dip to the 212-220 price range would be an attractive entry point. This actionable trade idea is based on the expectation that AMD will continue its upward trend, making it a potential short-term buy opportunity.
Bullish AMD Trade Call via Dollar Cost Averaging
"So, I am getting very very excited about the stock. For me though, right now it is more of a dollar cost average opposed to loading the boat. Regardless, I think AMD in the long term of things in the next few years has a map laid out, not a guarantee, but a map layout to hit a trillion dollar company that's still a three bagger from here. This is coming from someone who's bullish on AMD and it's been bullish for a very long time. This is already a multi multibagger for me. But again, the market gives us opportunity. So, I wouldn't rush all at once."
The host expresses strong bullish sentiment on AMD, highlighting its long-term growth potential as a multi-multibagger and even a trillion-dollar company. He advises a dollar cost averaging approach rather than lump-sum buying, suggesting caution while remaining optimistic about future gains.
Bullish AMD deal from Oracle signals AI momentum
"I mean, I'm always looking at the chip stock. So, AMD advanced micro devices top on my list. Um, it had a big jump on Wednesday, up 9% that closed at a record high. It was uh after earlier in the week, so on Tuesday, it landed a major deal from Oracle."
The speaker highlights AMD's recent performance, noting a 9% jump and a record close following a major deal with Oracle. This deal is seen as a catalyst in AMD's effort to challenge Nvidia in the AI processor market, particularly as Oracle plans to deploy its chips in data centers.
Bullish Trade Call on AMD Due to Oracle GPU Order
"The biggest news is actually something happening with AMD. So AMD was pretty happy earlier today after a pullback, and Oracle announced a massive initial deployment of AMD's MI450 series GPUs with an order for 50,000 units starting in Q3 of 2026 and expanding into 2027. I do believe AMD is on its way to be a trillion dollar company in the next five years owing to this rack scale solution that integrates CPU, GPU, and other components to drive revenue per system. This order, along with the momentum from previous partnerships, makes the future revenue potential look underestimated by current analyst estimates."
The speaker highlights a significant deployment order from Oracle for AMD MI450 GPUs, viewing it as a major catalyst for AMD. This endorsement is backed by the potential to drive integrated revenue and a long-term vision of AMD reaching trillion-dollar market value, making it an attractive buying opportunity.
Bullish Commentary on AMD Amid Oracle's Chip Deployment
"Oracle will be deploying AMD's latest artificial intelligence chips to build out a new supercluster to help customers run larger, more complex AI models in the second half of next year. I spoke to a number of Oracle cloud executives on why they decided to partner with AMD this time over Nvidia and here's what they had to say about why they see AMD as the right choice for inference. I think with AMD, we've been working for so long with them that their software stack is really, really critical. That statement is very bullish for AMD overall and a real vote of confidence in their competitive positioning in the AI ecosystem."
The speaker highlights Oracle's decision to deploy AMD chips as a strong positive catalyst for AMD. He emphasizes the importance of AMD's software stack and its competitive positioning against Nvidia, suggesting a bullish outlook for AMD as it benefits from increased deployments and potential margin expansion.
Cautionary Commentary on AMD's Open AI Exposure
"Yeah, well, AMD just had to deal with open AI. >> Yeah, >> that's a whole different discussion. I probably should have included a graphic that's been floating around showing the relationship Open AI has with Nvidia, with AMD, with uh uh Coreave and many other companies. And this money is just circulating back and forth. And it's healthy in one respect because everyone is helping fund each other meet these goals, but it also creates an Achilles uh heel in, in, you know, a potential big problem. If one of those bigger companies fails, what does that mean for all the other companies? What if Open AI can't be competitive? What if they just can't produce revenue? So, so it's potentially a problem in AI, but for now it's like AMD is what up 30 almost 40%."
Michael discusses the interconnected exposure between technology players, noting that while AMD has rallied 30-40% following its Open AI developments, the revolving fund structure among companies like Nvidia, AMD, and others could create vulnerabilities. He warns that if Open AI fails to generate competitive revenue, the ripple effects could impact these larger companies.
Bullish Commentary on AMD Amid AI Rally
"So, the first thing that I was looking at today, AMD Advanced Micro Devices had yet another huge gain today. Shares closed up 11.3%. This is another record high and it continues a 3-day winning streak that’s seen the stock rise more than 40%. This is really all coming off of the Open AAI deal earlier in the week. Basically saying that OpenAI will deploy, you know, 6 gawatt worth of AMD graphics. This is just really important for the company. It sort of shows that it can compete with Nvidia."
The speaker highlights AMD's strong performance with an 11.3% gain on record highs and a 3-day rally, attributing the momentum to a recent OpenAI graphics deal. The commentary underscores how this deal not only boosts AMD's competitive edge against Nvidia but also paves the way for potential strategic investment from OpenAI, adding to a bullish outlook in the tech space.
AMD Price Target Revision and OpenAI Partnership Catalyst
"AMD no longer stands for advanced money destroyer. I"m now calling it advanced money dispenser as a stock is up 26% on the open AI partnership. Based on my last video, I gave my price target of $370 per share. And in this video, I"m going to update it up to $500 per share after the partnership with Open AAI. I"m going to give you the details and tell you how I got this price target. The Open AI partnership is pretty much a gamecher as it could generate tens of billions of dollars of annual revenues for AMD."
The speaker updates the AMD price target from $370 to $500 per share, citing the OpenAI partnership as a major catalyst. He emphasizes the potential revenue generation, multi-year deal details, and the strategic use of dilution to secure a long-term partnership with OpenAI, positioning AMD for significant growth.