Investment Insights on AMD Stock

Buy AMD stock and don't stop buying. The time has come for this video. I think some of you guys knew this one was coming and sure enough here it is. Buy the stock heavy over the next several months under $150 a share is ideal. I'm gonna explain why in this video here today. I'm gonna show you my projections for AMD under my base case, the bowl case, and the bear case as well. So I'll show you how the stock will react in all those different environments. Now, I gotta be honest with you guys I'm a little scared recording this video here today and the reason being is it's not not to do with like is AMD stock going to be bad or maybe this is a mistake like maybe buying the stock's a mistake like no that's not why I'm scared the reason I'm scared is because this is a video category on my channel this year in 2024 where like every stock ended up just being a banger I did buy Shopify stock and don't stop buy Palantir stock and don't stop buy Tesla stock and don't stop Buy Nike stock, buy Elf stock, and Celsius. And here's how those stocks have performed since I came out with those videos. Tesla went from $180 when I recorded that video to $389 now. Elf went from $101 when I recorded that video to $140. AMD, we'll see. The jury's going to be out, right? Shopify was $80 when I recorded that video. It's now $115. Nike stock was $75. It's $77. We'll see where Nike goes over time here. Palantir was $20 when I recorded that. Palantir is now $72. And Celsius was $28. Jury's still out on that one. And now it's $30, right? So, moral of the story is, there's a lot to live up to here in regards to AMD stock. I appreciate everybody joining me. As always, there's one thing and one thing only I need from you guys. I got a banner in my garage. It says it right there. Smash the like button. That's all I need from you guys. Thank you to the 10% of people that watch my videos that smash the like button. I appreciate it. all of you guys that are in that 10% and for the 90% let me just welcome you guys over to the smash club you can join it here today it's free to do so you hit that thumbs up button that's it okay if you want to subscribe the channel it's free to do so you can turn on notifications all that good stuff if you if you care about doing all that additionally if you want access to all my premium courses my entire course library as well as my private discord chat as well as access to 1000xdocs.com pin comment down there you fill an application we'll see if we can get you a bundle of all that stuff together there So you're ready to rock and roll over this next few years. Okay. Alrighty guys, let's start out with AMD. Let me address this right at the top. We got to talk about the party. Here I am. I'm walking into this party, right? Here I am. And meanwhile, everybody's walking out and they all got frowns in their face and they're like, this party sucks, man. Don't go in there. It's not even worth your time. We've been at this party. Nothing's going on. And I'm like, dude. Like the party's about to start. Like you just came to the party too early. Like what are you doing? Like you didn't come to the party at the right time. Like the party's going to get going around midnight, around 1 a.m. That's when we're going to start partying. And y'all came at like 7 p.m. and thought we were going to have a party. What kind of party did you think this was? And so that's how I feel coming into AMD stock and starting to buy the stock now is people, the sentiment's very negative. They're calling it advanced money destroyer. This is a three-year and one-month chart I'm showing you right here, okay? Over the past three years and one month, this stock is down 15%. Think about all the inflation that has happened in the world in the past three years and one month. Think about if you just had your money in a savings account. Think about if you just had your money in treasuries, right? You would have done far better than AMD stock. If you would have just been investing in the S&P 500, the NASDAQ, anything like that over the past three years and one month, you would have done far better than AMD, right? That's brutal. That's absolutely brutal. And so the sentiment is extremely poor. You know what stock this reminds me of as far as the sentiment goes? It reminds me a lot, if you weren't tracking this channel back then, I'm sure a lot of you guys were watching back then, but in the back half of 2023, in the beginning of 2024, what stock was it buying very heavy that had a very similar sentiment setup? What stock was it? PayPal. I started acquiring PayPal stock very heavy in the back half of 2023 and going into the beginning of 2024. And the sentiment couldn't be worse because people had lost money on that stock for year after year after year, right? And here I was getting involved in the stock in the 50s and 60s, and I'm like, the party's about to start. Like, I don't know where, but it's going here, right? And Alex Chris got brought in at PayPal, and we've seen what's happened with that company ever since, right? So I'm seeing a very similar setup here in regards to AMD where the sentiment's just awful. If I pull up an eight-month chart of AMD, it's nasty. I can understand why people call it Advanced Money Destroyer. The stock's down. 38% in the past eight months. Oh my gosh. Like that is a nasty move down. Additionally, if we back it up, we want to look at the fourth quarter of 2022. So two years ago, right? From those lows that were hit, almost all the, pretty much all the big tech stocks hit a blow in October, November. of 2022 after the tech crash. I call it like the tech bubble 2.0 essentially happened, right? And just all those tech-related stocks got wrecked. Well, since that time period, AMD stocks up 133%. So it looks like, oh, that's actually pretty good. In a two-year performance, roughly, that's pretty dang good. Here's the issue. Their main competitor, Nvidia, is up 1,136% over that time. So that's a crazy- crazy divergence there, right? So people could look at that and be like, yeah, sure, AMD's up a little over double, but NVIDIA's over 10x. So I should have been investing in NVIDIA. So once again, I get the whole negative sentiment. But let me show you something that's very important here. Very important. Look at this. So if we don't want to cherry pick the data, right? And we just say, pull up a five-year of AMD, pull up a 10-year of AMD. Let's see those, right? You look at the five-year and 10-year performance of this company, it's pretty darn impressive. In the past five years, the stock's up 232%. Like, you know, if I can make 232% on every stock I buy over a five-year basis, I'll be a very happy camper. I'll be a very happy camper. I won't complain about that. There's no way I can complain about that, right? 232% in five years, give me that all day, every day. I'll gladly take that. On a 10-year performance, AMD stocks up 4,500 plus percent in the past 10 years. I'll take that performance any day of the week, okay? That's incredible what this company's done over the past five years and ten years, right? When you don't try to, like, cherry-pick the data and say, well, here was, like, you know, this and that, right? Now, additionally, this looks at the ten-year versus their competitors, right? NVIDIA and Intel. NVIDIA and Intel would always be considered AMD's two main rivals or two main competitors, right? So $100,000 into NVIDIA stock ten years ago is now worth $26 million. which is ridiculous, right? $100,000 into AMD is worth $4.6 million. So I understand $4.6 million, not $26 million, but who's beat NVIDIA stock in the past 10 years? NVIDIA stock might be the best performing 10-year stock in the entire stock market. It's a one-on-one freak situation. I'm sorry, but $100,000 into $4.6 million, that's amazing, right? Now, if you'd put $100,000 into Intel in that same amount of time... You would have about $56,000 in Intel. You could make an argument that maybe you'd have a little more because of dividends that were paid out to Intel over time. But still, the moral of the story is your shares would be worth $56,000 now, and they were worth $100,000 10 years ago. So the moral of the story is here, AMD is a beast. It's just not as beastly as NVIDIA. Lisa Su, the CEO of this company, she just hit 10 years being CEO of this company. She became CEO of NVIDIA. October 2014. And what a span. If you compare her against just about any CEO out there in the public markets the past 10 years, who's done better than her? Sure, Jensen has, right? But it's very difficult to make an argument that whoever you're going to put her on the list, whether it's Jensen or Elon, whoever, they're all legends. They're all crazy legends, right? And she's in that mix. Now, look at the revenue of this company over time. This was the first full year. 2015 was the first full year of her as CEO, right? They did $3.99 billion. Then they went into 4.27, 5.39, 6.47, 6.73, 9.76, 16.4, $23 billion of revenue. And then they finally had a decline year, right, in 2023. And now on a trillion-to-12-month basis, her revenue is back positive again. So under Lisa Su's management, right, ever since her first full year with the company, they've only had one down revenue year. That's pretty darn impressive. Like what she's doing here is very, very impressive. Now, that shows you the performance of NVIDIA over time, right, and how their revenue is trending over time. But what about recently? Wow. We had some very important things going on here recently I have to show you guys. There's basically four segments of NVIDIA's business. There are two entree businesses, which are the big dogs, right? And there's two side dish businesses. What we're looking at here is entree one and entree two. Data center. Their latest quarterly numbers came in at $3.5 billion of revenue that was up 122% year-over-year. Incredible number. This has a long way to grow in the future. Operating income for the latest quarter for the data center business came in at $1 billion. That's versus a little over $300 million a year ago, which means they over 3x'd their operating income on a year-over-year basis. Their profitability is exploding to the upside now. Client segment. Revenue went to $1.9 billion. That's up 29% year-over-year. Operating income went to $276 million from $140 million, which is about a 2x year-over-year. So operating income and data center went up over 3x and operating income on client segment went up around 2x. That's incredible. Now there's side dish businesses are where the trouble spots are for AMD right now in the short term. I think they're going to both flip over to the positive in the middle to the second half of 2025. Very important. Gaming segment revenue is down 69%. A business is just in a bad spot short term. I believe I'm fully believing that things are going to turn around. And based upon the trends I see in the numbers, in the data and kind of hearing what management's saying there's no doubt in my mind that gaming should turn positive in the middle to back half of 2025 same exact thing in regards to embedded segment 927 million dollars i was down 25 percent year over year based upon the trends and how i'm seeing the numbers come in that's another business that should inflect positive middle to second half of 2025 for this company so then we're going to have the entrees rolling and the side dishes moving for nvidia now their latest outlook Look at the latest outlook for this company. They basically said they're going to do $7.5 billion of revenue, right? Plus or minus $300 million. AMD, Lisa Su, leading this company, usually a little more on the conservative side. My guess is they probably do $8 billion to $9 billion of revenue in this quarter they're going to report. Here in, what, a month or two from now? Gross margins expected to skyrocket for the company up to 54%. Keep in mind the gross margins recently have been in the 40s. So we're talking about a major expansion in margins here. And this is going to be their best quarter ever, by far. Like, by far, this is going to be their best quarter. And I don't think it's in too distant of the future that AMD is going to start putting up $10 billion revenue numbers for this company overall, right? Now, here's the deal, right? Now I'm looking at 1000xstocks.com, and I'm looking essentially at trillion 12-month revenue of AMD over time. Now, what's interesting is a lot of people were buying AMD stock during this time period, right? This was not the time period to buy AMD stock. They basically had flatlining revenues for many, many quarters. And if you look at the trillion-to-a-month basis, it's very self-explanatory. You don't need to be a chart master to understand what's going on there. Their revenue was going a whole lot of nowhere for the longest time. So that was not the time to buy AMD stock. Now's the time to be buying AMD stock. And the reason being is we just started to inflect majorly positive when it comes to trillion-to-a-month revenue. And that trend is not going to end anytime soon, in my opinion. You're going to see this. revenue on a trillion-to-a-month basis continue to skyrocket for the next several years. Not for the next several quarters, for the next several years in regards to AMD. So this is the time to be a buyer of this stock. Now, additionally, you're looking at a forward P on the stock that's a steel deal. We're talking about, we're going into the second inning of growth for this company, this growth cycle the company's about to go through, right? The first inning was just inflecting trillion-to-a-month revenue up, right? Now we're going into the second inning, which is like, Take it on up for the next several quarters. So given the fact that this company is about to go in their second inning, trading in the 20s when it comes to your forward P doesn't make sense at all. It's way, way, way too low for this company. Forward P on the stock should be in the 40s right now, if not 50s. Now additionally, you look at the gross margins of this company. It's been in the 40s recently. They're going to get crazy lift. The company is projecting 54% in the latest quarter, and I think that's going to continue to climb. Net margins of this company. are about to climb like insane. 7.5% net margins recently for the company. They're not even going to be in the same ballpark as that. To show you here where NVIDIA is at margin-wise, NVIDIA is at 75% gross margins, and NVIDIA is at 50% plus net margins. Now, AMD's got crazy expansion coming in regards to their gross margins and their net margins. They are not going to get to NVIDIA's level, in my personal opinion. They're not going to go from 48% to 75%. But do I see the company going to high 50s, maybe even low 60s? Absolutely. Additionally, when it comes to their net margins, do I see them getting a 50% plus? Absolutely not. But do I see them over the next several years getting net margins 30% plus? Absolutely. So we got a lot of margin expansion coming for this company over this next several years. Now, additionally, if you look at next year earnings per share growth, look at it. AMD is going to far, far outpace NVIDIA, right? And keep in mind that number is low based upon what I'm looking at. 200% is kind of in the bag for earnings per share growth for next year. Now, additionally, if you look at AMD on a trillion to a month revenue basis versus current year expected revenue growth versus next year, basically we have acceleration, acceleration, acceleration, acceleration. And I see that continue to accelerate for the next several years. Now, that's fun times. Whenever you can be in a stock where their revenue keeps accelerating and accelerating for several years in a row, it usually means great things for the stock price. It's usually a very fun time to be an investor of that company. Now, NVIDIA went through that cycle where their revenue kept accelerating and accelerating. Unfortunately, that's now over for NVIDIA. So NVIDIA is kind of unfortunately... For them, they've entered a no-fund stage. The no-fund stage doesn't mean you can't make money in the stock. It's just it's harder to get the gains because now people start looking at the revenue growth, and it keeps going down on a percentage basis, right? So NVIDIA next year, maybe they grow revenue. I mean, we'll see. Maybe it's 30%, 40%, 50%. We'll see, 60%. But regardless, people have gotten used to triple-digit revenue growth. So then the next year, let's say NVIDIA grows revenue 10%, 15%, 20%. Still a good number. And especially off a big base, but people start looking at it and they're like, that's it? Like what happened in the days NVIDIA was growing 100% plus? So we got to understand there's going to be a big inflection here between AMD and NVIDIA, where essentially AMD is going to be the hot one that everybody's going to want to flock to because they got the accelerating growth in NVIDIA. Unfortunately, we'll have the decelerating growth rates quite substantially, especially over this next two years now, right? Now, another thing we're going to talk about and I need to address in this video is the competition aspect. Because there's some people that don't understand this space well enough, in my opinion, and they think that in order for AMD to win, NVIDIA has to lose. They have this view that it's a zero-sum game, and that's just the way it is. No, that's not true at all. AMD does not need NVIDIA to lose for them to win. That's not the way this works. And also, I'm not banking that... And AMD needs to become some $3.4 trillion, $3.5 trillion market cap, right? I'll show you my projections in a moment, and you'll see there's massive upside in the stock. But for this to be a huge success for me, I don't need it to be a $3, $4, $5 trillion company, $10 trillion company, right? And NVIDIA investors now at this point in time, they need NVIDIA to become a $5, $10 trillion company to have that be a successful investment. I don't need that, right? So that's important to understand. Now, the reason you... The reason you got to understand like this, this is not a zero sum market. The markets, the TAM, the total addressable market is expanding so rapidly, right? This is back in October. AMD CEO predicts $500 billion AI chip market by 2028. Lisa Su is not just some crazy pumper that's just going to say whatever to say whatever. No, she looks at everything very mathematically. If you understand anything about her background or upbringing and whatnot, mathematics. She looks at the trends, the numbers, kind of projects out what's likely to happen, and she's predicting a $500 billion plus market for AI chips by 2028. That means there's plenty of money to go around for AMD, for NVIDIA, right? It's not like it's just one company's got to win and the other company has to lose. That's not the way this works, okay? Now, also, if you think about portfolio allocation, you know, somebody could look at this and they could easily position very similar to how I've done Celsius and Monster recently, right? So... I would look at Celsius as kind of like an AMD type stock, fast growing, right? Kind of going through some drama short term, but the long term looks good, but they're riskier, right? Monster, on the other hand, is the monster. They own Monster, they own Rain Energy, right? They own Bang Energy. Like you go down the energy drink aisle, Monster has such a dominant market share between them and all their brands, right? And so somebody could easily do a strategy here, like I did with Celsius and Monster, where essentially for every... $2 they put in AMD, they put $1 in NVIDIA. So then just in case NVIDIA makes AMD completely obsolete, which once again is so unrealistic, it's not even funny, but let's just say it happens, right? Well, then NVIDIA is just going to have 100% of the market pretty much, or 99% of the market or something insane, right? Because they'll just have no serious competitors at that point in time. AMD is really the only company in the whole marketplace who can really give NVIDIA competition at this point in time, right? So the moral of the story is... There's ways to play this if you're scared about AMD just becoming irrelevant because NVIDIA just like massively tears them up, right? I did a video here. I don't know if you guys got to see this. 52-minute video, 16 years of stock market advice in 52 minutes. And in that video, I give you guys so many different hacks on different portfolio strategies and different things like this that I've learned over the past 16 years to help position your portfolio so regardless of an environment, you can essentially put yourself in a situation of win. And every time I shout out that video, by the way. I mean, it gets views and people love it, man. The amount of comments I see on that video, they're just so positive. If you've never got to check that out, check it out. Believe me. And people in the comments, you know, you guys that have seen that video before, let people know what they're missing out on. If you ever see that thumbnail suggested to you, watch that video if you've got 52 minutes on your hand. Trust me, it's well worth it. It's well worth it, okay? So here's my projections for AMD. I'm about to take you through my base case. My bull case, my bear case, my ultra bear case, and my ultra bull case, okay? This is my base case. This is essentially what I expect to happen for the company. Now, for 2025, basically 25% plus revenue growth is in the bag for the company. Because basically, the company always usually has about a year out of kind of visibility. And based upon where I see analyst numbers at, who those folks all talk to the management team, based upon how I hear Lisa Sue talking, 25% revenue growth for 2025 is in the bag. I think there's a good probability they're going to grow far outpacing that. But I wanted to, in my base case, I like to actually take a little bit more of a conservative approach. So I have them only doing 25% revenue growth in 2025. 200% net income growth, that's basically in the bag as well for AMD for next year as well. So. Those you got to basically assume in any sort of scenario. The only debate is how are growth rates 2026 through 2028? I have them doing revenue growth in my base case 25% a year. That's extremely doable for the company. When you look at the embedded segment and the data center segment, I mean, the client segment and the gaming segment, I think there's just the ZT systems acquisition. Like there's no disbelief at all, in my opinion, about that being realistic number. Net income growth. Of 35% on the bottom line, yes, because they're going to have major gross margin expansion. So their net margins should expand rapidly over this next few years, right? And they're going to be selling a lot of higher margin chips. Keep that in mind. So it puts net income margins come 2028 at 34%. A mile and a half away from NVIDIA's 50 plus percent net margins, right? 34% is realistic. If you're going to say, oh, it's just a chip company. Yeah, they got 25% top line, 35% bottom line, just a chip company. You're going to probably value the stock between a 30 PE and a 40 PE, right? That puts the stock somewhere between about $400 and about $500 a share, which gives me a compound annual growth rate of somewhere between low 30s percent and low 40s percent. That's my base case. This, folks, is why I'm so dang bullish on AMD stock. When my base case says I can get a compound annual growth rate of 30% plus, whoo-wee, it's hard not to be bullish. Here's my bear case for AMD. So, once again, you know next year is basically in the bag so the only debate is 2026 to 2028 so in this scenario i had them doing only 15 revenue growth 2026 through 2028 on average i'm gonna be honest with you guys if amd with all this growth in data center and all this chip expansion if they only grow revenue 15 on average during that three-year span lisa sue and the team they actually failed and they've i've never seen them fail before that would be a legit fail for the company it'd be sad Net income growth of only 20% on average per year for those three years would be horrible. That puts them at net income margins of 31% come 2028. So, you know, let's say no one wanted to pay a high valuation at all for this company. So even with 15% top line and 20%, you should be able to pay way more than a 20P. But let's just say no one wants to pay up for this company. So they have to be valued at a 20 to 25 multiple, which is basically in line with where the market in general trades at. with growth that's still as far outstripping the market, right? In that sort of scenario, I still get a compound annual growth rate of about 9% on the low end and about 16% on the high end. Stock price goes to somewhere around $190 to about $230 a share, right? That's my bear case. And that's very bearish, man. That's very bearish. So, I mean, the compound annual growth rate over the next four years is not bad, even under a bear case scenario, right? Here's a bull case for AMD stock. This would be a scenario where they grow 35% per year revenue, right? And that includes 2025 for this scenario, right? So I think there's actually a pretty decent probability they're going to do around 35% revenue growth in 2025 and then keep that going for the next several years. But for my base case, I didn't want to do that. I want to go a little more bearish, right? So for my bull case, I went with that, then 35% on average, and then obviously a big year next year, right? But then kind of doing about 50%. earnings per share growth. If they're doing 35% revenue growth with the higher margin chips, I think they could get up to like a 50% net margin growth or net income growth over the coming years, which puts them at a 35% net income margin in 2028, right? 35% top line, 50% bottom line. If you're even just viewing it as a chip company, 35 to 45 P's cake, that's cake, man. Like all day, every day. So In this scenario, stock goes to somewhere around $640 a share to low $800 a share, right? 49% compounding in your growth rate on the low end, and 58% compounding in your growth rate on the high end for the stock under my bull case. And it's not like the bull case is that crazy. It's not. If you just look at AMD's opportunity and the TAM in their marketplace, this is like, whoa, and look at the peas. 35 to 45? I could easily put those PEs at like a 55, 75 or something like that, right? I don't think that's crazy. Now, here's an ultra bold case. You really want to go bullish for AMD? We can go real bullish, right? So let's say AMD just tears it up over the next few years. Lisa Su has a historic run in... and gets to 50% revenue growth per year on average for the next four years, right? 2025 through 2028. They do their 200% still in 2025. And then after that, they do 75% net income growth per year, gets their net income margins to 36% come 2028, right? I mean, 50% top line growth, 75% bottom line, 55 to 75 PE is pretty much in the bag in that scenario. Which gives you a compound annual growth rate on the low end of 87% on the high end, 102%, which gives you a $1,595 stock to $2,175 under the Ultra Bowl case for AMD. But let's go bearish. Let's go ultra bearish. Here's my Ultra. Oh, this is not Ultra Bowl, by the way. This is Ultra Bear. I don't know why I put Bowl there. This is my Ultra Bear case for AMD. Ugly, ugly. Here's what we're looking at. 25%, 200% is kind of in the bag for 2025, right? And then after that, magically, AMD never grows. They never grow. 0% revenue growth in 2026. 0% revenue growth in 2027. 0% revenue growth in 2028. 0% net income growth in all three of those years, right? So unrealistic, it's not even funny. Like, that's ridiculous. Like, this is just a ridiculous ultra bearish case, right? But let's run with it. And so you'd pay, what, about a 10 to 15 PE for AMD if they couldn't grow their top line or their bottom line. Because you're going to pay way less than where the market trades at in general. So in that scenario, AMD would be $54 to $81, which gives you a compound annual loss of 20% on the low end, 11% on the high end. Well, actually, it'd be flipped the other way in regards to this, right? So the moral of the story is this is so unrealistic. And it's not like I get completely wrecked on the stock. Like I would lose around 50% of my value on this stock roughly, right? Because the stock would probably go to $60 to $70. But this is so silly. Like borderline, like this is ridiculous. But anyways, I just wanted to throw something like ridiculous at you guys for just an ultra, ultra bearish thing. So we could all just mentally wrap our heads around. Like how does a stock get cut in half? That's how it would get cut in half. They don't grow at all for three years. yeah i could see the stock game cut in half in that scenario right now these are very slept on buys here recently the amd did both these announcements came back out back in august right amd completes acquisition of silo ai to accelerate development and deployment of ai models and amd hardware on amd hardware and additionally this one came out this is their big acquisition amd to significantly expand data center ai systems capabilities with acquisition of hyperscale solutions providers zt systems That was around a $4.9 billion deal between cash and stock. So, you know, everybody was just so focused on macroeconomics and also just so focused on what the Fed was going to do back in August and the whole Japanese yen carry trade situation. Everybody's focused on anything but companies that I think these two acquisitions got slept on. But these are going to help AMD massively over the next several years. It's not like this is just a one and done situation, right? Next question. How big? Can I make this position, right? I think it's a fair question. I now, it's now officially positioned in the public account, right? $52,000. It's the 13th biggest position for me. Meta is the biggest, right? Followed by Tesla, PayPal, Amazon, Palantir, Elf, Cheesecake, Revolve, Nike, Estee Lauder, Celsius, SoFi, and then AMD. So how big could I make this position of AMD in the public account? I could see myself making this position sizing between $100,000 and $200,000. When I say position size, I'm talking about the amount of money I put into the stock, right? Which actually is a huge level of confidence in regards to AMD. Because you look at Meta and it's like, wow, such a massive position, $1.043 million in Meta, right? Here's the thing you got to understand about that. My entire cost basis for Meta is like $201,000, right? Because we're sitting on a gain of $841,000. So for me to say I would feel comfortable investing as much in AMD as I did in Meta, that's got to speak volumes about the risk-reward profile I see for the next several years in regards to AMD, right? Definitely pretty positive when it comes to that. And a lot of these positions, like, it's not like I put crazy amount of money in them. Tesla's like, wow, such a big position, $389,000. Well, $376,000 of that $389,000 is gains. Almost all of my Tesla positions now at this point in time is just gains on the stock. Palantir, very similar situation, right? Palantir, $241,000 position, $216,000 of its gains. Elf, $140,000 position. Ooh, it's big. It's because I'm up $133,000 on the stock. stock. So the moral of the story is for me to put a hundred to $200,000 in a stock, I've got to feel like one, it's, it's, it's big. If you even get in the public account nowadays, like you got to be damn impressive company. I don't just throw any stock in the public account nowadays. Those days are long gone. This portfolio has got way too much money. It's way too important. It's way too important to my brand, all those sorts of things, right? You've got to be a real deal. Holy field to get in that portfolio. I got to have an extreme level of like confidence in the risk reward profile, right? So for AMD to get put in there is big. And for me to say I'm willing to put $100,000 to $200,000 in the stock, I think that speaks volumes around the risk reward. And when I take you through my cases I just took you through, it's hard not to say $100,000 to $200,000 feels about right in regards to that stock, right? So there's that. And so now the question is, is this video going to age like fine wine or is it going to age like milk? Now the time tells, right? But all I can tell you in regards to AMD, is I will be buying the stock very aggressively, very aggressively here over the short term. And I think 2025 through 2028 should be a very fun time for the company overall and for the stock price. And we'll see. I think it's going to age like wine. If I had to say, what's it going to age like? I think it's going to age like Salma Hayek. Oh my gosh, did that age well. Woo wee! Hope you guys enjoyed today's video. I appreciate you joining me here today. If you want to access my private stock group, you can apply for access with the pinned comment down there. That is access to my entire library of premium courses, such as Become a Master of Stock Market, Millionaire Playbook, Stock Options Masteries, Dividend Investing Mastery, Financial Statements Mastery, exclusive access to my Discord chat, which has six, seven, eight-figure members and myself in. We can also bundle it together with 1000xstocks.com access, so you can have access to the entire research platform. It's unbelievable. Pinned comment down there. Fill out a form. It's time to take your game up to a much higher level than where you're at right now. And by the way. Hey, you might want to check out those other videos at some point in time. Much love and have a great day.

I'm gonna show you my projections for AMD under my base case, the bowl case, and the bear case as well. So I'll show you how the stock will react in all those different environments. Now, I gotta be honest with you guys I'm a little scared recording this video here today and the reason being is it's not not to do with like is AMD stock going to be bad or maybe this is a mistake like maybe buying the stock's a mistake like no that's not why I'm scared the reason I'm scared is because this is a video category on my channel this year in 2024 where like every stock ended up just being a banger I did buy Shopify stock and don't stop buy Palantir stock and don't stop buy Tesla stock and don't stop Buy Nike stock, buy Elf stock, and Celsius.

And here's how those stocks have performed since I came out with those videos. Tesla went from $180 when I recorded that video to $389 now. Elf went from $101 when I recorded that video to $140. AMD, we'll see.

The jury's going to be out, right? Shopify was $80 when I recorded that video. It's now $115.

Nike stock was $75. It's $77. We'll see where Nike goes over time here.

Palantir was $20 when I recorded that. Palantir is now $72. And Celsius was $28. Jury's still out on that one.

And now it's $30, right? So, moral of the story is, there's a lot to live up to here in regards to AMD stock. I appreciate everybody joining me. As always, there's one thing and one thing only I need from you guys. I got a banner in my garage.

It says it right there. Smash the like button. That's all I need from you guys. Thank you to the 10% of people that watch my videos that smash the like button. I appreciate it.

all of you guys that are in that 10% and for the 90% let me just welcome you guys over to the smash club you can join it here today it's free to do so you hit that thumbs up button that's it okay if you want to subscribe the channel it's free to do so you can turn on notifications all that good stuff if you if you care about doing all that additionally if you want access to all my premium courses my entire course library as well as my private discord chat as well as access to 1000xdocs.com pin comment down there you fill an application we'll see if we can get you a bundle of all that stuff together there So you're ready to rock and roll over this next few years. Okay. Alrighty guys, let's start out with AMD.

Let me address this right at the top. We got to talk about the party. Here I am.

I'm walking into this party, right? Here I am. And meanwhile, everybody's walking out and they all got frowns in their face and they're like, this party sucks, man.

Don't go in there. It's not even worth your time. We've been at this party.

Nothing's going on. And I'm like, dude. Like the party's about to start. Like you just came to the party too early. Like what are you doing?

Like you didn't come to the party at the right time. Like the party's going to get going around midnight, around 1 a.m. That's when we're going to start partying. And y'all came at like 7 p.m. and thought we were going to have a party.

What kind of party did you think this was? And so that's how I feel coming into AMD stock and starting to buy the stock now is people, the sentiment's very negative. They're calling it advanced money destroyer.

This is a three-year and one-month chart I'm showing you right here, okay? Over the past three years and one month, this stock is down 15%. Think about all the inflation that has happened in the world in the past three years and one month. Think about if you just had your money in a savings account. Think about if you just had your money in treasuries, right?

You would have done far better than AMD stock. If you would have just been investing in the S&P 500, the NASDAQ, anything like that over the past three years and one month, you would have done far better than AMD, right? That's brutal.

That's absolutely brutal. And so the sentiment is extremely poor. You know what stock this reminds me of as far as the sentiment goes?

It reminds me a lot, if you weren't tracking this channel back then, I'm sure a lot of you guys were watching back then, but in the back half of 2023, in the beginning of 2024, what stock was it buying very heavy that had a very similar sentiment setup? What stock was it? PayPal.

I started acquiring PayPal stock very heavy in the back half of 2023 and going into the beginning of 2024. And the sentiment couldn't be worse because people had lost money on that stock for year after year after year, right? And here I was getting involved in the stock in the 50s and 60s, and I'm like, the party's about to start. Like, I don't know where, but it's going here, right? And Alex Chris got brought in at PayPal, and we've seen what's happened with that company ever since, right? So I'm seeing a very similar setup here in regards to AMD where the sentiment's just awful.

If I pull up an eight-month chart of AMD, it's nasty. I can understand why people call it Advanced Money Destroyer. The stock's down. 38% in the past eight months.

Oh my gosh. Like that is a nasty move down. Additionally, if we back it up, we want to look at the fourth quarter of 2022. So two years ago, right? From those lows that were hit, almost all the, pretty much all the big tech stocks hit a blow in October, November.

of 2022 after the tech crash. I call it like the tech bubble 2.0 essentially happened, right? And just all those tech-related stocks got wrecked.

Well, since that time period, AMD stocks up 133%. So it looks like, oh, that's actually pretty good. In a two-year performance, roughly, that's pretty dang good.

Here's the issue. Their main competitor, Nvidia, is up 1,136% over that time. So that's a crazy- crazy divergence there, right?

So people could look at that and be like, yeah, sure, AMD's up a little over double, but NVIDIA's over 10x. So I should have been investing in NVIDIA. So once again, I get the whole negative sentiment.

But let me show you something that's very important here. Very important. Look at this.

So if we don't want to cherry pick the data, right? And we just say, pull up a five-year of AMD, pull up a 10-year of AMD. Let's see those, right?

You look at the five-year and 10-year performance of this company, it's pretty darn impressive. In the past five years, the stock's up 232%. Like, you know, if I can make 232% on every stock I buy over a five-year basis, I'll be a very happy camper. I'll be a very happy camper. I won't complain about that.

There's no way I can complain about that, right? 232% in five years, give me that all day, every day. I'll gladly take that. On a 10-year performance, AMD stocks up 4,500 plus percent in the past 10 years. I'll take that performance any day of the week, okay?

That's incredible what this company's done over the past five years and ten years, right? When you don't try to, like, cherry-pick the data and say, well, here was, like, you know, this and that, right? Now, additionally, this looks at the ten-year versus their competitors, right?

NVIDIA and Intel. NVIDIA and Intel would always be considered AMD's two main rivals or two main competitors, right? So $100,000 into NVIDIA stock ten years ago is now worth $26 million. which is ridiculous, right? $100,000 into AMD is worth $4.6 million.

So I understand $4.6 million, not $26 million, but who's beat NVIDIA stock in the past 10 years? NVIDIA stock might be the best performing 10-year stock in the entire stock market. It's a one-on-one freak situation.

I'm sorry, but $100,000 into $4.6 million, that's amazing, right? Now, if you'd put $100,000 into Intel in that same amount of time... You would have about $56,000 in Intel.

You could make an argument that maybe you'd have a little more because of dividends that were paid out to Intel over time. But still, the moral of the story is your shares would be worth $56,000 now, and they were worth $100,000 10 years ago. So the moral of the story is here, AMD is a beast.

It's just not as beastly as NVIDIA. Lisa Su, the CEO of this company, she just hit 10 years being CEO of this company. She became CEO of NVIDIA.

October 2014. And what a span. If you compare her against just about any CEO out there in the public markets the past 10 years, who's done better than her? Sure, Jensen has, right?

But it's very difficult to make an argument that whoever you're going to put her on the list, whether it's Jensen or Elon, whoever, they're all legends. They're all crazy legends, right? And she's in that mix. Now, look at the revenue of this company over time.

This was the first full year. 2015 was the first full year of her as CEO, right? They did $3.99 billion. Then they went into 4.27, 5.39, 6.47, 6.73, 9.76, 16.4, $23 billion of revenue.

And then they finally had a decline year, right, in 2023. And now on a trillion-to-12-month basis, her revenue is back positive again. So under Lisa Su's management, right, ever since her first full year with the company, they've only had one down revenue year. That's pretty darn impressive.

Like what she's doing here is very, very impressive. Now, that shows you the performance of NVIDIA over time, right, and how their revenue is trending over time. But what about recently?

Wow. We had some very important things going on here recently I have to show you guys. There's basically four segments of NVIDIA's business.

There are two entree businesses, which are the big dogs, right? And there's two side dish businesses. What we're looking at here is entree one and entree two.

Data center. Their latest quarterly numbers came in at $3.5 billion of revenue that was up 122% year-over-year. Incredible number. This has a long way to grow in the future. Operating income for the latest quarter for the data center business came in at $1 billion.

That's versus a little over $300 million a year ago, which means they over 3x'd their operating income on a year-over-year basis. Their profitability is exploding to the upside now. Client segment.

Revenue went to $1.9 billion. That's up 29% year-over-year. Operating income went to $276 million from $140 million, which is about a 2x year-over-year. So operating income and data center went up over 3x and operating income on client segment went up around 2x. That's incredible.

Now there's side dish businesses are where the trouble spots are for AMD right now in the short term. I think they're going to both flip over to the positive in the middle to the second half of 2025. Very important. Gaming segment revenue is down 69%.

A business is just in a bad spot short term. I believe I'm fully believing that things are going to turn around. And based upon the trends I see in the numbers, in the data and kind of hearing what management's saying there's no doubt in my mind that gaming should turn positive in the middle to back half of 2025 same exact thing in regards to embedded segment 927 million dollars i was down 25 percent year over year based upon the trends and how i'm seeing the numbers come in that's another business that should inflect positive middle to second half of 2025 for this company so then we're going to have the entrees rolling and the side dishes moving for nvidia now their latest outlook Look at the latest outlook for this company.

They basically said they're going to do $7.5 billion of revenue, right? Plus or minus $300 million. AMD, Lisa Su, leading this company, usually a little more on the conservative side. My guess is they probably do $8 billion to $9 billion of revenue in this quarter they're going to report. Here in, what, a month or two from now?

Gross margins expected to skyrocket for the company up to 54%. Keep in mind the gross margins recently have been in the 40s. So we're talking about a major expansion in margins here. And this is going to be their best quarter ever, by far. Like, by far, this is going to be their best quarter.

And I don't think it's in too distant of the future that AMD is going to start putting up $10 billion revenue numbers for this company overall, right? Now, here's the deal, right? Now I'm looking at 1000xstocks.com, and I'm looking essentially at trillion 12-month revenue of AMD over time.

Now, what's interesting is a lot of people were buying AMD stock during this time period, right? This was not the time period to buy AMD stock. They basically had flatlining revenues for many, many quarters. And if you look at the trillion-to-a-month basis, it's very self-explanatory.

You don't need to be a chart master to understand what's going on there. Their revenue was going a whole lot of nowhere for the longest time. So that was not the time to buy AMD stock.

Now's the time to be buying AMD stock. And the reason being is we just started to inflect majorly positive when it comes to trillion-to-a-month revenue. And that trend is not going to end anytime soon, in my opinion.

You're going to see this. revenue on a trillion-to-a-month basis continue to skyrocket for the next several years. Not for the next several quarters, for the next several years in regards to AMD.

So this is the time to be a buyer of this stock. Now, additionally, you're looking at a forward P on the stock that's a steel deal. We're talking about, we're going into the second inning of growth for this company, this growth cycle the company's about to go through, right?

The first inning was just inflecting trillion-to-a-month revenue up, right? Now we're going into the second inning, which is like, Take it on up for the next several quarters. So given the fact that this company is about to go in their second inning, trading in the 20s when it comes to your forward P doesn't make sense at all.

It's way, way, way too low for this company. Forward P on the stock should be in the 40s right now, if not 50s. Now additionally, you look at the gross margins of this company.

It's been in the 40s recently. They're going to get crazy lift. The company is projecting 54% in the latest quarter, and I think that's going to continue to climb. Net margins of this company. are about to climb like insane.

7.5% net margins recently for the company. They're not even going to be in the same ballpark as that. To show you here where NVIDIA is at margin-wise, NVIDIA is at 75% gross margins, and NVIDIA is at 50% plus net margins.

Now, AMD's got crazy expansion coming in regards to their gross margins and their net margins. They are not going to get to NVIDIA's level, in my personal opinion. They're not going to go from 48% to 75%.

But do I see the company going to high 50s, maybe even low 60s? Absolutely. Additionally, when it comes to their net margins, do I see them getting a 50% plus?

Absolutely not. But do I see them over the next several years getting net margins 30% plus? Absolutely. So we got a lot of margin expansion coming for this company over this next several years. Now, additionally, if you look at next year earnings per share growth, look at it.

AMD is going to far, far outpace NVIDIA, right? And keep in mind that number is low based upon what I'm looking at. 200% is kind of in the bag for earnings per share growth for next year.

Now, additionally, if you look at AMD on a trillion to a month revenue basis versus current year expected revenue growth versus next year, basically we have acceleration, acceleration, acceleration, acceleration. And I see that continue to accelerate for the next several years. Now, that's fun times.

Whenever you can be in a stock where their revenue keeps accelerating and accelerating for several years in a row, it usually means great things for the stock price. It's usually a very fun time to be an investor of that company. Now, NVIDIA went through that cycle where their revenue kept accelerating and accelerating.

Unfortunately, that's now over for NVIDIA. So NVIDIA is kind of unfortunately... For them, they've entered a no-fund stage.

The no-fund stage doesn't mean you can't make money in the stock. It's just it's harder to get the gains because now people start looking at the revenue growth, and it keeps going down on a percentage basis, right? So NVIDIA next year, maybe they grow revenue. I mean, we'll see.

Maybe it's 30%, 40%, 50%. We'll see, 60%. But regardless, people have gotten used to triple-digit revenue growth.

So then the next year, let's say NVIDIA grows revenue 10%, 15%, 20%. Still a good number. And especially off a big base, but people start looking at it and they're like, that's it? Like what happened in the days NVIDIA was growing 100% plus?

So we got to understand there's going to be a big inflection here between AMD and NVIDIA, where essentially AMD is going to be the hot one that everybody's going to want to flock to because they got the accelerating growth in NVIDIA. Unfortunately, we'll have the decelerating growth rates quite substantially, especially over this next two years now, right? Now, another thing we're going to talk about and I need to address in this video is the competition aspect.

Because there's some people that don't understand this space well enough, in my opinion, and they think that in order for AMD to win, NVIDIA has to lose. They have this view that it's a zero-sum game, and that's just the way it is. No, that's not true at all. AMD does not need NVIDIA to lose for them to win. That's not the way this works.

And also, I'm not banking that... And AMD needs to become some $3.4 trillion, $3.5 trillion market cap, right? I'll show you my projections in a moment, and you'll see there's massive upside in the stock.

But for this to be a huge success for me, I don't need it to be a $3, $4, $5 trillion company, $10 trillion company, right? And NVIDIA investors now at this point in time, they need NVIDIA to become a $5, $10 trillion company to have that be a successful investment. I don't need that, right? So that's important to understand. Now, the reason you...

The reason you got to understand like this, this is not a zero sum market. The markets, the TAM, the total addressable market is expanding so rapidly, right? This is back in October. AMD CEO predicts $500 billion AI chip market by 2028. Lisa Su is not just some crazy pumper that's just going to say whatever to say whatever.

No, she looks at everything very mathematically. If you understand anything about her background or upbringing and whatnot, mathematics. She looks at the trends, the numbers, kind of projects out what's likely to happen, and she's predicting a $500 billion plus market for AI chips by 2028. That means there's plenty of money to go around for AMD, for NVIDIA, right?

It's not like it's just one company's got to win and the other company has to lose. That's not the way this works, okay? Now, also, if you think about portfolio allocation, you know, somebody could look at this and they could easily position very similar to how I've done Celsius and Monster recently, right? So...

I would look at Celsius as kind of like an AMD type stock, fast growing, right? Kind of going through some drama short term, but the long term looks good, but they're riskier, right? Monster, on the other hand, is the monster.

They own Monster, they own Rain Energy, right? They own Bang Energy. Like you go down the energy drink aisle, Monster has such a dominant market share between them and all their brands, right?

And so somebody could easily do a strategy here, like I did with Celsius and Monster, where essentially for every... $2 they put in AMD, they put $1 in NVIDIA. So then just in case NVIDIA makes AMD completely obsolete, which once again is so unrealistic, it's not even funny, but let's just say it happens, right? Well, then NVIDIA is just going to have 100% of the market pretty much, or 99% of the market or something insane, right? Because they'll just have no serious competitors at that point in time.

AMD is really the only company in the whole marketplace who can really give NVIDIA competition at this point in time, right? So the moral of the story is... There's ways to play this if you're scared about AMD just becoming irrelevant because NVIDIA just like massively tears them up, right?

I did a video here. I don't know if you guys got to see this. 52-minute video, 16 years of stock market advice in 52 minutes. And in that video, I give you guys so many different hacks on different portfolio strategies and different things like this that I've learned over the past 16 years to help position your portfolio so regardless of an environment, you can essentially put yourself in a situation of win.

And every time I shout out that video, by the way. I mean, it gets views and people love it, man. The amount of comments I see on that video, they're just so positive.

If you've never got to check that out, check it out. Believe me. And people in the comments, you know, you guys that have seen that video before, let people know what they're missing out on. If you ever see that thumbnail suggested to you, watch that video if you've got 52 minutes on your hand.

Trust me, it's well worth it. It's well worth it, okay? So here's my projections for AMD. I'm about to take you through my base case.

My bull case, my bear case, my ultra bear case, and my ultra bull case, okay? This is my base case. This is essentially what I expect to happen for the company. Now, for 2025, basically 25% plus revenue growth is in the bag for the company.

Because basically, the company always usually has about a year out of kind of visibility. And based upon where I see analyst numbers at, who those folks all talk to the management team, based upon how I hear Lisa Sue talking, 25% revenue growth for 2025 is in the bag. I think there's a good probability they're going to grow far outpacing that. But I wanted to, in my base case, I like to actually take a little bit more of a conservative approach. So I have them only doing 25% revenue growth in 2025. 200% net income growth, that's basically in the bag as well for AMD for next year as well.

So. Those you got to basically assume in any sort of scenario. The only debate is how are growth rates 2026 through 2028?

I have them doing revenue growth in my base case 25% a year. That's extremely doable for the company. When you look at the embedded segment and the data center segment, I mean, the client segment and the gaming segment, I think there's just the ZT systems acquisition. Like there's no disbelief at all, in my opinion, about that being realistic number.

Net income growth. Of 35% on the bottom line, yes, because they're going to have major gross margin expansion. So their net margins should expand rapidly over this next few years, right? And they're going to be selling a lot of higher margin chips.

Keep that in mind. So it puts net income margins come 2028 at 34%. A mile and a half away from NVIDIA's 50 plus percent net margins, right?

34% is realistic. If you're going to say, oh, it's just a chip company. Yeah, they got 25% top line, 35% bottom line, just a chip company.

You're going to probably value the stock between a 30 PE and a 40 PE, right? That puts the stock somewhere between about $400 and about $500 a share, which gives me a compound annual growth rate of somewhere between low 30s percent and low 40s percent. That's my base case. This, folks, is why I'm so dang bullish on AMD stock. When my base case says I can get a compound annual growth rate of 30% plus, whoo-wee, it's hard not to be bullish.

Here's my bear case for AMD. So, once again, you know next year is basically in the bag so the only debate is 2026 to 2028 so in this scenario i had them doing only 15 revenue growth 2026 through 2028 on average i'm gonna be honest with you guys if amd with all this growth in data center and all this chip expansion if they only grow revenue 15 on average during that three-year span lisa sue and the team they actually failed and they've i've never seen them fail before that would be a legit fail for the company it'd be sad Net income growth of only 20% on average per year for those three years would be horrible. That puts them at net income margins of 31% come 2028. So, you know, let's say no one wanted to pay a high valuation at all for this company.

So even with 15% top line and 20%, you should be able to pay way more than a 20P. But let's just say no one wants to pay up for this company. So they have to be valued at a 20 to 25 multiple, which is basically in line with where the market in general trades at. with growth that's still as far outstripping the market, right? In that sort of scenario, I still get a compound annual growth rate of about 9% on the low end and about 16% on the high end.

Stock price goes to somewhere around $190 to about $230 a share, right? That's my bear case. And that's very bearish, man. That's very bearish.

So, I mean, the compound annual growth rate over the next four years is not bad, even under a bear case scenario, right? Here's a bull case for AMD stock. This would be a scenario where they grow 35% per year revenue, right?

And that includes 2025 for this scenario, right? So I think there's actually a pretty decent probability they're going to do around 35% revenue growth in 2025 and then keep that going for the next several years. But for my base case, I didn't want to do that. I want to go a little more bearish, right? So for my bull case, I went with that, then 35% on average, and then obviously a big year next year, right?

But then kind of doing about 50%. earnings per share growth. If they're doing 35% revenue growth with the higher margin chips, I think they could get up to like a 50% net margin growth or net income growth over the coming years, which puts them at a 35% net income margin in 2028, right?

35% top line, 50% bottom line. If you're even just viewing it as a chip company, 35 to 45 P's cake, that's cake, man. Like all day, every day. So In this scenario, stock goes to somewhere around $640 a share to low $800 a share, right?

49% compounding in your growth rate on the low end, and 58% compounding in your growth rate on the high end for the stock under my bull case. And it's not like the bull case is that crazy. It's not. If you just look at AMD's opportunity and the TAM in their marketplace, this is like, whoa, and look at the peas. 35 to 45?

I could easily put those PEs at like a 55, 75 or something like that, right? I don't think that's crazy. Now, here's an ultra bold case. You really want to go bullish for AMD? We can go real bullish, right?

So let's say AMD just tears it up over the next few years. Lisa Su has a historic run in... and gets to 50% revenue growth per year on average for the next four years, right?

2025 through 2028. They do their 200% still in 2025. And then after that, they do 75% net income growth per year, gets their net income margins to 36% come 2028, right? I mean, 50% top line growth, 75% bottom line, 55 to 75 PE is pretty much in the bag in that scenario. Which gives you a compound annual growth rate on the low end of 87% on the high end, 102%, which gives you a $1,595 stock to $2,175 under the Ultra Bowl case for AMD. But let's go bearish. Let's go ultra bearish.

Here's my Ultra. Oh, this is not Ultra Bowl, by the way. This is Ultra Bear.

I don't know why I put Bowl there. This is my Ultra Bear case for AMD. Ugly, ugly. Here's what we're looking at.

25%, 200% is kind of in the bag for 2025, right? And then after that, magically, AMD never grows. They never grow.

0% revenue growth in 2026. 0% revenue growth in 2027. 0% revenue growth in 2028. 0% net income growth in all three of those years, right? So unrealistic, it's not even funny. Like, that's ridiculous. Like, this is just a ridiculous ultra bearish case, right? But let's run with it.

And so you'd pay, what, about a 10 to 15 PE for AMD if they couldn't grow their top line or their bottom line. Because you're going to pay way less than where the market trades at in general. So in that scenario, AMD would be $54 to $81, which gives you a compound annual loss of 20% on the low end, 11% on the high end. Well, actually, it'd be flipped the other way in regards to this, right? So the moral of the story is this is so unrealistic.

And it's not like I get completely wrecked on the stock. Like I would lose around 50% of my value on this stock roughly, right? Because the stock would probably go to $60 to $70. But this is so silly. Like borderline, like this is ridiculous.

But anyways, I just wanted to throw something like ridiculous at you guys for just an ultra, ultra bearish thing. So we could all just mentally wrap our heads around. Like how does a stock get cut in half? That's how it would get cut in half.

They don't grow at all for three years. yeah i could see the stock game cut in half in that scenario right now these are very slept on buys here recently the amd did both these announcements came back out back in august right amd completes acquisition of silo ai to accelerate development and deployment of ai models and amd hardware on amd hardware and additionally this one came out this is their big acquisition amd to significantly expand data center ai systems capabilities with acquisition of hyperscale solutions providers zt systems That was around a $4.9 billion deal between cash and stock. So, you know, everybody was just so focused on macroeconomics and also just so focused on what the Fed was going to do back in August and the whole Japanese yen carry trade situation.

Everybody's focused on anything but companies that I think these two acquisitions got slept on. But these are going to help AMD massively over the next several years. It's not like this is just a one and done situation, right?

Next question. How big? Can I make this position, right? I think it's a fair question.

I now, it's now officially positioned in the public account, right? $52,000. It's the 13th biggest position for me.

Meta is the biggest, right? Followed by Tesla, PayPal, Amazon, Palantir, Elf, Cheesecake, Revolve, Nike, Estee Lauder, Celsius, SoFi, and then AMD. So how big could I make this position of AMD in the public account? I could see myself making this position sizing between $100,000 and $200,000.

When I say position size, I'm talking about the amount of money I put into the stock, right? Which actually is a huge level of confidence in regards to AMD. Because you look at Meta and it's like, wow, such a massive position, $1.043 million in Meta, right?

Here's the thing you got to understand about that. My entire cost basis for Meta is like $201,000, right? Because we're sitting on a gain of $841,000.

So for me to say I would feel comfortable investing as much in AMD as I did in Meta, that's got to speak volumes about the risk-reward profile I see for the next several years in regards to AMD, right? Definitely pretty positive when it comes to that. And a lot of these positions, like, it's not like I put crazy amount of money in them. Tesla's like, wow, such a big position, $389,000. Well, $376,000 of that $389,000 is gains.

Almost all of my Tesla positions now at this point in time is just gains on the stock. Palantir, very similar situation, right? Palantir, $241,000 position, $216,000 of its gains.

Elf, $140,000 position. Ooh, it's big. It's because I'm up $133,000 on the stock.

stock. So the moral of the story is for me to put a hundred to $200,000 in a stock, I've got to feel like one, it's, it's, it's big. If you even get in the public account nowadays, like you got to be damn impressive company. I don't just throw any stock in the public account nowadays. Those days are long gone.

This portfolio has got way too much money. It's way too important. It's way too important to my brand, all those sorts of things, right? You've got to be a real deal. Holy field to get in that portfolio.

I got to have an extreme level of like confidence in the risk reward profile, right? So for AMD to get put in there is big. And for me to say I'm willing to put $100,000 to $200,000 in the stock, I think that speaks volumes around the risk reward. And when I take you through my cases I just took you through, it's hard not to say $100,000 to $200,000 feels about right in regards to that stock, right? So there's that.

And so now the question is, is this video going to age like fine wine or is it going to age like milk? Now the time tells, right? But all I can tell you in regards to AMD, is I will be buying the stock very aggressively, very aggressively here over the short term.

And I think 2025 through 2028 should be a very fun time for the company overall and for the stock price. And we'll see. I think it's going to age like wine. If I had to say, what's it going to age like? I think it's going to age like Salma Hayek.

Oh my gosh, did that age well. Woo wee! Hope you guys enjoyed today's video.

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Transcript for:Investment Insights on AMD Stock

Transcript for:
Investment Insights on AMD Stock