Advanced Micro Devices, Inc. (AMD): A Bull Case Theory

We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $219.76 as of December 1st. AMD’s trailing and forward P/E were 113.89 and 35.21 respectively according to Yahoo Finance.

AMD’s FPGA technology is emerging as a pivotal advantage in the next phase of AI computing, particularly at the edge. The recent announcement that IBM ran a quantum error-correcting algorithm on an AMD FPGA ten times faster than required validates AMD’s long-standing thesis: its field-programmable gate arrays can deliver ultra-low latency performance that surpasses current AI workload needs.

This breakthrough underscores how AMD’s 2020 acquisition of Xilinx — the global FPGA leader — effectively cemented its dominance in this niche, leaving little room for competitors such as Intel, which failed to develop Altera meaningfully after its acquisition.

As AI workloads increasingly shift to the edge, latency becomes the key differentiator, and FPGAs’ ability to dynamically reconfigure themselves to match algorithms at the circuit level provides unmatched flexibility and efficiency. IBM’s demonstration shows FPGAs can outperform GPUs in high-frequency, algorithmic workloads without requiring costly GPU clusters, offering a scalable path to next-generation compute architectures. Over time, inference will permeate all computing layers, and adding FPGA modules to CPUs, GPUs, and other systems will become essential to meet latency and adaptability demands.

AMD’s chiplet-based design philosophy further amplifies this advantage, enabling modular, efficient AI deployment across the computing stack. The company’s AI PC lineup already illustrates this integration, with CPUs fused with FPGAs to power on-device inference. This evolution positions AMD not just as a GPU competitor but as the foundational enabler of ubiquitous AI compute — a structural shift the market has yet to fully price in.

Previously we covered a bullish thesis on Advanced Micro Devices, Inc. (AMD) by StockOpine in May 2025, which highlighted strong Q1 results and AI-driven growth across Data Center and Ryzen products. The company’s stock has appreciated approximately by 91.11% since our coverage as the thesis played out. Antonio Linares shares a similar view but emphasizes AMD’s FPGA technology as its next AI growth catalyst.

Advanced Micro Devices, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 113 hedge fund portfolios held AMD at the end of the second quarter which was 97 in the previous quarter. While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.