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 $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance.

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. AMD’s free cash flow per share is continuing to accelerate, driven by its ability to deliver personalized compute at marginal cost, giving customers a compelling total cost of ownership advantage across an expanding range of workloads. The company’s chiplet platform, which allows compute engines to be mixed and matched, underpins this reaccelerating growth, particularly in datacenter and client segments.

Datacenter revenue, up 22% year-over-year, is fueled by the MI family’s outsized memory capacity, while client revenue benefits from AMD’s ability to combine CPUs with FPGAs—capabilities that are only possible through chiplets. The ongoing expansion of AI workloads, which demand highly versatile and distributed compute, positions AMD to capture substantial incremental value, with free cash flow per share expected to eclipse previous highs over the next one to two years. CEO Lisa Su highlighted strong progress with ROCm and ongoing investments in AI infrastructure, signaling the company’s commitment to a seamless customer development experience and the continued convergence of training, inference, and reinforcement learning.

Market opportunity is expanding rapidly, with AMD viewing the AI compute total addressable market as materially larger than prior estimates, implying non-linear growth potential. Even if stock prices experience short-term volatility, the underlying fundamentals—scaling AI compute, growing earning power, and incremental value creation for end customers—remain robust. With AI capabilities doubling every six months and adoption accelerating, AMD is positioned for a potentially decade-long period of extraordinary value creation, driven by structural market dynamics rather than investor sentiment, offering an exceptional risk/reward profile for long-term shareholders.

Previously, we covered a bullish thesis on Advanced Micro Devices, Inc. (AMD) by StockOpine in May 2025, which highlighted strong Q1 FY25  results, datacenter growth, and AI-driven expansion. AMD’s stock price has appreciated by approximately 119.79% since our coverage due to continued AI demand and product ramp-ups. Antonio Linares shares a similar thesis but emphasizes AMD’s accelerating free cash flow per share and chiplet-driven compute versatility as the main growth driver.

Advanced Micro Devices, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 115 hedge fund portfolios held AMD at the end of the third quarter which was 113 in the previous quarter. While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.