amd will never be the same folks there's developments going on here with AMD that are the biggest we have seen in this company in the past 10 years now when I first started following AMD stock it was about 10 years ago and I remember the first time I looked at the stock it was a twobuck chuck it was a company that looked like they might end up going bankrupt and I remember looking at the company and being like it's interesting but you know I don't know about this company their financials are a mess like I don't even know if they're going to make it those sorts of things and it was a two buck chuck at that time and here we are a decade later in and stocks $115 what an accomplishment the first time I ever spoke about AMD stock publicly was over 8 years ago on the channel i did a video called is AMD stock a buy got 20,000 people to watch it i appreciate the 20,000 that showed up for that one not sure how many you guys still rocking with me all these years later but appreciate you okay uh but that was the first time I ever spoke about AMD stock and at that particular time AMD was now $13 a share $13 a share now when I uh assessed AMD I thought it was a really interesting business model they had some really interesting things going on there but at that time their financials were were complete junk just to be quite frank they took a net loss year after year after year if you look at 2014 they lost $43 million 2015 they lost $660 million and then 2016 they lost almost a half a billion a company was a money loser and by the way that's the reason the company got down to $2 a two buck chuck you lose fortunes of money like that you're going to go down there right but there were some folks back then that really understood AMD amd's always had one of the most intelligent investor bases you will find of any stock in the entire stock market and I see some of those comments even from back in the day i'm like dang man people make really good calls look at this comment for over it was over eight years ago it's a good video Jeremy i as you know have been long AMD since the very low range of$2 to$4 dollars so it has been an incredible investment for me i'm still holding because I believe this coming year in 2019 beyond they'll be able to significantly and aggressively take market share away from Intel in many markets such as data center and machine learning ryzen uh chipset is also the next generation of gaming for both console and PC and I that was a pretty freaking good call man like like well done and there's a lot of people that are very very educated on this company right but then it's the AMD of old right now we have a new AMD and this is what people are looking at now they're looking at a stock that over the past four years this is a 4-year chart against AMD versus S&P 500 versus the NASDAQ and versus Nvidia and what they see nowadays is an AMD that's up 22% in the past 4 years meanwhile the S&P 500 has dwarfed the returns and gotten a 37% return and the QQQ is up 46% so you could have over doubled your returns over the past four years if you were four years ago today you were buying the NASDAQ instead of buying AMD meanwhile if you had bought Nvidia Nvidia stock was up 590% people look at this and I'm like "Dang man." Like AMD you know kind of sucks right like that's the that's the feeling you get if you've held the stock for the past four years right now if we look at a one-year chart it might even be uglier because you look at a one-year and AMD is down 27 12% meanwhile Nvidia's up 9% the S&P 500's up 10% and the NASDAQ's up 10% so you got a huge negative return on AMD over the past year meanwhile Nvidia's nicely green the S&P 500 is as well in the in the Huer and this is why people have started to make jokes around AMD as advanced money destroyer it's the disintegrator right advanced money disintegrator and the reason being is gosh if you held the stock for the past four years you got a really bad taste in your mouth right if you held the stock for the past year you got a really bad taste in your mouth but something has just changed in regards to this company look at this oh my gosh this is since the April bottom and look at the stock that has now performed the best since the April bottom out of everything it's AMD if we look at the return since that April bottom the S&P 500's climbed 20% from the bottom the Nasdaq has climbed about 27% from the bottom nvidia is up 46% and AMD is the best return profile of them all up 48% so clearly there's something going on here in regards to AMD that finally has people saying you know what the time to start accumulating AMD shares has come now there was some absolute gamechanging things that occurred yesterday i need to show you guys what happened what occurred and all those sorts of things in this video here today so the first thing we're going to go over in this video is we're going to cover the big stuff that happened yesterday which there was some huge stuff that's going to be gamechanging for AMD's financials for years and years to come and I'm not just talking about the next couple years 2 three years no no I'm talking about for the next 10 20 years okay additionally I'm going to give you my updated price target on the stock for the next three years we're going to do that in this video here today okay additionally I went ahead yesterday and got a chance to record uh Lisa Sue's exclusive interview with CNBC and I don't think a lot of people have gotten to see that yet so I want to show you what she said in that interview so we'll be going over all that one thing and one thing only I need from you guys for this beast of a video here today i need you to smash that like button please do that for me i have a goal for this video 10,000 likes my guess is 100,000 people will watch this video over time if we can get 10,000 of the 100,000 to like this video that means the world to me i hope you guys understand these type of videos on the main channel take a lot of time and attention to put together for you guys and uh I hope you appreciate it cuz I I certainly appreciate you guys always joining me additionally if you want to subscribe to the channel you can certainly subscribe we're well over 860,000 subscribers here strong on the channel okay additionally obviously you guys know all the stuff Iran Israel stuff like that um you know if there's ever some breaking news that's really big that's impacting the market a lot of times I'll cover that on my reaction channel jeremy Lefay makes some money so you know because I can just get videos out really quick on that channel this channel takes a long time to get a video out so if there's ever breaking news I always pay attention to kind of the reaction channel cuz I'll probably get something breaking out much more quicker to you guys right uh versus you know a lot lot more time consuming like this and I think it's worth mentioning oh my gosh you gota be flipping my flapjacks palunteer look at Palanteer stock up again today whole market's going down i mean Dow last time I looked was down 800 plus points nasdaq was getting wrecked the Russell was getting wrecked even worse and yet Palanteer up man unbelievable palanteer right okay and by the way remember Palanteer 3 years ago was like AMD's been in the past people thought that was a money disintegrator stock it was a stock you just throw your money into and it gets burned away you know why cuz eight was Palanteer went from like $30 $40 stock to five bucks it was a $5 stock right it almost went to the goolog got close got close to the goolog man that's crazy right all righty so let's cover the big stuff that happened here uh yesterday cuz there's some huge stuff listen right off the bat Lisa soon comes out flexing comes out flexing she says "I've been incredibly proud to say that billions of people use AMD technology every day whether you're talking about services like Microsoft Office 365 or Facebook or Zoom or Netflix or Uber or Salesforce or SAP they're running on AMD infrastructure right in AI the biggest cloud and AI companies are using Instinct to power their latest models in new production workloads and there's a ton of new innovations that's coming uh for new AI startups right so she's flexing right off the gate and I think that's important because you know you got somebody like Stacy Rascon who's supposed to be this like chip analyst who's like knows everything about chips right um he goes on CNBC this was a few weeks ago maybe a month ago and I reacted the video on the reaction channel so disrespectful so disrespectful to AMD in my personal opinion he said something along the lines of you know I'm not even sure we need them listen if you don't need them why why is Microsoft using them and Facebook in Zoom and Netflix and Uber and Salesforce and SAP and all these big companies like at the end of the day yes they're very very necessary in these markets okay so as with many companies now including partner Dell in in rival Nvidia AMD is now talking about AI agents this is this new huge opportunity and Salesforce it looks like one of the best companies to kind of benefit from AI agents there's going to be many companies that benefit from AI agents and how those help businesses but they benefit companies like AMD and Nvidia in a huge huge way right sue says that Agentic AI represents a new class of user this is important what we're actually seeing is we're adding the equivalent of billions of new virtual users to the global compute infrastructure so I use internet uh you watching this video right now guess what you use the internet too you know how I know you use the internet cuz you're watching this video right now okay we all use the internet we're users of the internet well if you got these AI agents right they're going to be using the internet too you know why because they got to get answers for all this stuff they got to do this they got to do this they got to figure all this stuff out right um you know if a business is using a bunch of these AI agents to solve customer problems and things like that guess what there you're going to be using in the the the compute infrastructure right all of these agents are here to help us and they require lots of GPUs and lots of CPUs working together in an open ecosystem so this is important and the more AI agents that are out there the more demand for compute there is which benefits a company like AMD handsomely right AI isn't just a cloud or data center question now it's also an endpoint question in particular the PC we expect to see AI I deployed in every single device that's big in itself because you could be talking about separate chips in every single device that is just there to help with AI related problems no different than an iPhone has a bunch of different chips made up of it some of those are for to help with communications RF type stuff some of that might be for you know uh audio translation some of it's to obviously run the device right um and all those sorts of things right sue hints at another theme that's becoming popular among many new enterprise hardware providers open source and openness amd is the only company committed to openness across hardware software and solutions sue claims the history of our industry shows us that time and time again innovation truly takes off when things are open now little bit of shots at Nvidia there because Nvidia looks like they're trying to build a walled garden there right uh similar to like an Apple amd's taking a different approach they're taking an approach of we want this to be an open ecosystem everybody can use it and that's the way it's going to be right so they're going about it a little bit more like an Android versus iOS right but they're trying to do it a little bit more of an Android route uh they're going about it a little bit more like you could look at a ton of different verticals over time and the ones that went more open ended up becoming the bigger thing over time versus kind of something that that that's closed right and she gave examples of that as well right uh then Sue was joined by Sun who's the a uh X AI uh I believe CEO and they're behind Gro so if you use X which by the way if you use X and you want to ever follow me on X I always have my X page linked in the description area of uh all these videos right but if you use X you might use Gro sometimes okay and so XAI Sun focuses on how his small team is bolstered by AMD hardware like MI300X and of course openness he talks about right now this is when the presentation starts to get really really important because they start to shift to talking about MI 350 now you got to understand MI350 is the real big gamechanging product for AMD to really enter this AI fight they're already in it right but in terms of we're coming now we got the weapons mi350 marks a huge huge bump up in terms of the ability for inference specifically versus the the basic 300 series a 350 is a whole new bump level up there and then MI400's a whole other level okay with the MI 350 series we're delivering the largest generational performance lead in the history of Instinct and we're already in deep development of MI400 for 2026 obviously that's going to be a 2026 story um my guess is I will take off at some point mid mid 2026 or maybe back half 2026 is my guess there today I'm super excited to launch the MI350 series our most advanced AI platform ever that delivers leadership performance across the most demanding models this series she says adding that while AMD will talk about MI55 and the MI350 they're actually the same silicon but MI355 supports higher thermals and power envelopes so that we can deliver more realworld performance so don't think like you know if you get an MI350 like that's like way worse than an MI355 or something like that um you know just specific things you would need a 355 for over a 350 okay no Sue claims the 350 series will deliver a massive 4x generational leap in AI compute by the way from what I heard MI400 should be a 10x [Music] but the 350 is huge and this is why I I tell you guys like this is the big step for AMD to really start moving the needle in regards to the revenue numbers because companies are going to be ordering these handover fists when you're talking about delivering a 4x generational leap in AI compute to accelerate both training and inference some of the the you know specs they're talking about 288 gigabytes of memory running up to 20 billion parameters on a single GPU you know obviously the chip's very impressive MI400 will even be a whole other level up there right uh then they bring out Meta's VP of engineering um behind obviously the llama model right we're seeing critical advancements that started with inferencing and now extending to all of our of your AI offering I I think AMD and Meta have always been strongly aligned right and obviously Meta and AMD have a very strong relationship and you know if you think about who do you really want to have a strong relationship with in the AI space gosh like Emma Meta is right at the top of the list because Meta is integrating AI in basically every single product they have i I can't think of anything that Meta has got going on with that company and obviously that's my biggest position in the public account i can't think of anything they're doing that's not incorporating AI they're incorporating AI in several different ways on Facebook Instagram WhatsApp like everything and then they got the llama models which that's a massive opportunity over this next 10 plus years so you know it's good to be in with those guys now uh Song then explains that MI350 will become a key part of the company's AI infrastructure it's already using the MI300X accelerators we're also quite excited about the capabilities of MI 350X he says it brings significantly more compute power and acceleration memory to support FP4 FP6 all while maintaining the safety pull factor at at MI300 so we can deploy quickly now they go ahead they show off like the RMI 350 series solution partners and it's you know all the companies you'd want to have up there oracle Dell Super Micro Cisco HP E all those type of companies right now this gets really interesting because now we start moving on to Microsoft in AMD so Bana is a little more on kind of the software side of of AMD more than the hardware side but basically they have Eric Boyd come on who's a uh CVP of AI platforms at Microsoft the two are discussing Microsoft and AMD's long-standing partnership with Boyd saying Microsoft has been using several generations of Instinct it's been a key part of our inferencing platform and we've integrated ROCM to our inferencing stack making it really easy for us to take and deploy models on the platform he says now additionally here I thought this was actually really really big they're talking about what they describe as a new opportunity for driving down inference costs this is huge because you got to understand more and more of these chips are going to need to be needed right more and more uh at the end of the day like if you're talking about people are going to use chat GPT more often people are going to use all these different AI products more often right gemini and go down the whole list of them a million of them right ai agents you need massively more chips than you already have now additionally you need these chips to be even more powerful more powerful which means you have to pay even more money this is where AMD comes in big in my opinion and if you want to talk about differentiating AMD verse Nvidia AMD is really looking to help bring down the costs for these companies because you can see the way the numbers are going for Meta for Microsoft all these companies Google run the whole list them Microsoft Amazon all them it's going to get to a point where like they'll end up spending more than they're even making in profits that's why you have to bring down the cost and so I'm sure Microsoft's looking at how much they're spending on all these chips right how much they're going to likely spend over the next few years i'm sure they're looking at what OpenAI is spending and obviously Microsoft's a massive shareholder Open AI and you know you start to have these conversations about we got to bring down cost in regards to this whole situation because you know the money's going to flow but the money doesn't flow right away in terms of you starting to make money and so this is where A and D starts to really matter in quite a significant way here okay in any LLM serving application there are two phases there's the prefill phase and the decode phase these two phases of the model are typically handled by the same GPU but now if you use the same GPU it often becomes a bottleneck for large models or when demand spikes happen you can get limited in performance or flexibility disagregation or disagregating the prefill in the decode phase can significantly improve throughput reduce cost and boost responsiveness he says and I think that matters uh pretty significantly in regards to that right now they also talk about developer cloud which has massive opportunity for this company with developer cloud anyone with a GitHub ID or an email address can access uh can get access to an instant GPU with just a few clicks he says directing developers who want to give it a try to go to dev.amd.com that's a massive opportunity for this company as well then they bring out the big dog i take you back to the whole Stacy Rascon comment about like I don't know if we really need AMD sam Elman is the man right now he's the one everybody wants to interview right now why because he's leading arguably the most important AI company in the world that's what it is viewed and so Sam Alman can be just about anywhere he wants to be right now the fact that he shows up to AMD's event I think speaks volumes about how important AMD is to a company like Open AI cuz that man could be anywhere getting interviewed by anybody or working doing whatever the fact that he goes to AMD event that says more than anything he says here in in itself okay no surprise guest someone who's really an icon of AI sam Alman comes out sam uh Alman talks about his company and what he's seen in the market i think the models have gotten good enough that people have been able to build really great products text image voice and all kinds of reasoning capabilities we've seen extremely quick adoption in the enterprise now coding has been one area people talk about a lot but I think what we're hearing again and again and again uh in in all these different ways is that these tools have gone from things that were you know fun and curious to truly useful he says right and man I just think about like could could OpenAI be the first company to come public with a trillion dollar valuation like that's what I'm thinking right now asked by Sue on how compute demands are changing alultman says one of the biggest differences has has been we moved to these reasoning models so we have had these very long rollouts where a model that often will think come back with a better answer this is really the pressure on model efficiency in long context for all of this we need tons of computers tons of memory tons of CPUs as well people think CPUs are like irrelevant sam Alman says "No no we need tons of CPUs as well not just GPUs." That's important remember this what we're discussing here today has a lot to do with a AI and GPUs but let's not forget AMD's got a whole bunch of businesses that aren't exactly in the realm that we're we're really focused on for this video here today that's important okay and our infrastructure ramp over the last year and what we're we're looking at for next year has been just crazy crazy things to watch what does he mean by crazy is he talking about crazy spend next year turn to the hardware used to support OpenAI's platforms like chat GPT m says a company is already running some work on MI300X but we are extremely excited it says here MI450 but from what I remember he he was talking about MI 350 remember MI350 is what's launching right now mi450 I mean shoot that's not even going to be till you know 6 months or 12 months after MI400 comes out so I I think what it should say here is MI350 keep that in mind okay but he's extremely excited about that and the memory architecture is great for inference big remember what Lisa Sue has said in the past she says am she believes AMD is extremely well positioned for inference and she believes inference going to be exponentially bigger and I believe from Jensen's comments as well inference is going to be exponentially bigger than training and so when Sam Alman says we're excited for for the new MI350 chip that's about to hit right and this architecture is great for inference i I don't know what else to tell you like like if Wall Street's having any any trouble understanding this just understand the most important man in the world in AI says he's very excited for the next chips and they're great for inference which is exactly what you need to be in the market for and he showed up and proudly spoke at an event for AMD i if you if you are confused about what AMD's opportunity is here I I I don't I don't have anything left to tell you if that's not enough proof like I I don't know what to tell you the most important man in the world in AI went to this event spoke in front of everybody and told him "Listen man chips are great for inference what more could you ask for?" Sue asked Olman what he sees for the future of AI how will workloads evolve uh what happens with quote unquote AGI uh artificial general intelligence he says I think we're going to maintain the same rate of progress rate of models for the second half of this decade as we did the first i wasn't so sure about the couple of years ago uh for a new research thing to figure out but now it looks like we'll be able to deliver on that so if you think forward to 2030 these systems will be capable of remarkable new stuff about scientific discovery running extremely complex functions throughput uh throughout society and things that we just couldn't even imagine he continues it's really going to take these these are huge systems now very complex engineering projects very complex research and to keep on this path of scaling we've got to work together across research engineering hardware and how we're going to deliver these systems and products this has gotten quite complex but if we can do uh but if we can do on that if we can deliver on that it drives collaboration across the whole industry and we'll keep this curve moving forward right so I think it's important to take a step back here because we're all we're all talking about right now MI you know 350 and that's about to ramp that's so exciting like that's going to mean huge thing for AMD's revenue profitability all that stuff right and then we're going to be talking about MI400 next year and like that's going to be a whole new level higher for AMD's revenue profits relevance everything across the board right oh my gosh and then we'll be talking about MI450 eventually right the thing you got to understand is chips just keep evolving they keep getting more complex they keep getting better and more powerful okay but listen don't get too caught up into the short-term stuff samman's talking about the 2030 he's talking about the 2030s right this is not just a one or two year game this is a next 10 20 year game and a company like AMD is positioning themselves very well for the next 10 to 20 years in these markets very very well right now AI you know even myself personally we're starting to use AI you know obviously I use Gemini sometimes right but even I'm starting to use for my little company my small business right which is thousandx.com we've even now just integrated AI into it i had the developers working on something for thousandx here that's very very exciting and I always thought something like this would be cool and we were able to execute it and we just launched it last night and so now when you type in you know a ticker symbol for a conference call we we actually are able to do,000xai summary which will give you a summary of what happened on that conference call roughly now keep in mind always still listen a full conference call you'll get even more detail but how cool is this imagine you're researching a company you're like I want to look into this Palunteer company right and so you hit Palunteer and boom look at that oh is that a second and it gave me a summary of Palunteer's latest conference call here revenue and profitability trends revenue growth trajectory palanteer reported steady year-over-year revenue growth blah blah blah right like isn't that insane that is so cool and this is just you know the the early innings here like we're just going to keep taking this up to to new levels and you know like literally we just launched it on the website last night and we'll keep working on this and keep making it better and better and better but I mean that's just a good example of like how a small business like mine is already starting to figure out ways to integrate AI into the products right you know like how cool is this generating summary with AI like cool maybe I already broke it i might have broke it already oh my gosh well hey we just launched it last night okay we got we got work to do okay let me see if I type in Apple maybe oh nope there we go microsoft one it just took longer for Microsoft so my guess is it has to listen to the whole conference call and then it deciphers in AI like I don't know how the developers pulled it off but I'm like this sick how sick is that man that's just for a small business like I have all righty let's go ahead now and let's listen to Lisa Sue speak here cuz I think this is really we're acquisitions uh that have helped really broaden hey hey what's going on and lmoni joining us but uh from you know nod.ai a uh bunch of strategic investments how if at all are these geopolitical tension is my internet gone bad what's going on here man come on you be flipping my flapjacks what in the world maybe my internet's went bad okay well before we do the Lisa Sue interview let's do something let's run projections okay let's run some projections we'll just do some intermediate projections here on AMD and you can see uh my different cases here so my bold case for AMD here is that this company will do a about a u I would say about a 40% revenue growth number per year on average over the next four years 2026 to 2029 okay with about I would say about a 55% net income growth number per year on average over the coming years assuming MI350 is a huge success which it looks like it will be mi400 then they'll have the 450 coming out then we'll be talking about MI500 like you know big stuff here now with those sorts of growth rates you could command somewhere between about a 40 you know obviously if it was a software company direct it would trade for way bigger multiples than this but you know 40 to 60 is pretty fair if the company's growing at those sorts of growth rates right that puts a stock come 2029 somewhere between $800 and about $1,200 now my base case is a little more conservative than that i have them doing 30% revenue growth on average per year uh with uh 40% net income growth on average per year now this would put them at net margins come 2029 of 24% which keep in mind that would be very very low compared to a company like AMD or excuse me compared to a company like Nvidia right now they're at way bigger numbers than that i would say you know at those sorts of growth rates in the semis I would say about a 35 to a 45 PE is very fair for a company with those sorts of growth rates and that puts the base case there at 2029 you know we can call it mid $400 to about $600 under my base case now my bare case is only 20% revenue growth per year this would be a big miss for AMD just to be quite frank with 30% net income growth this would be very disappointing i think Lisa Sue would be extremely extremely disappointed with herself and the whole team if they only did these numbers so 25s up top for the PE ratios 35s on the bottoms for the P ratios here uh under this scenario so even under in a horrible horrible like disastrous next many years which 20% revenue growth for AMD for 2026 29 on average like that would be a disaster for AMD just to be quite frank with how much growth this company should have over the coming years like they shouldn't even be close to that sort of number it should be at least 30% but 20% look it look at my return still the stock we're talking about 250 bucks to about 350 bucks and that's in a horrible disastrous situation for AMD like a disaster like like I'll be honest like if they only do 20% revenue growth on average that's like a fail complete fail and Lisa Sue I think would personally would tell you like that that's a huge fail for a business if we only grew at those sorts of rates that'd be crazy so the moral of the story is here and when how does openness fit into your strate I don't know what's going on here we're still in the very early innings of AI and frankly um as much as we've seen a ramp up in AI you know we have um sort of next number of years to over 500 billion dollars in 2028 um that's a huge market and you know in that market But people you know what it is it's not my internet you know what it is yesterday a bunch of these services Fubo it was like everything was like down for a certain amount of time yesterday like YouTube was having issues Google was having issues Snapchat was having issues like everybody was having issues so this was right around the time they were having all those issues so I think that's what screwed it up here but I don't know man you know I can just give you some stats right if you look at um the solution that we're just talking about the All right internet is not going to work here and uh you asked about open um open is the foundation of what we do at AMD you know yeah this is um you know and and look Apple's a great ecosystem ios is a great ecosystem uh but there are limitations to what develop Yeah and she's making the same point about openness there and you know Android versus iOS and those sorts of things right so uh the moral of the story is here AMD's got everything running in the right direction and last thing I'll address here is like why is Wall Street not you know recognizing it they're late they're late they're going to be late again a year from now two years from now they're going to be trampling over themselves to buy this stock maybe even six months from now they'll be trampling over themselves to buy this stock right now they're not as soon as the numbers start to really show up for all the stuff that's actually going on underneath then they're going to be like "Oh yeah this is a big thing blah blah blah." Right um same thing happened with Nvidia you know I could take you back and show you Nvidia stock fell 50% during 2022 you know peaked to trough from where it was end of 21 to where it was at you know kind of those lows in 22 you know and then and then you know what happened with Nvidia over the next few years it went up a,000% 1,000% they should have been buying like crazy in 2022 why were they selling everything in 2022 cuz they had no clue what was actually going on or how tech was going to transform they'll catch up to all this believe me they'll catch up to all this late they'll be they'll you know these same guys that won't buy the stock at 117 today will be be happy to pay 217 a year from now this is Wall Street man they'll be happy to pay 317 so you know always fascinating in regards to that and and the retail shareholders will get there before the Wall Streeters get there again it happens again and again okay hope you guys really enjoyed today's video hey if you're looking for access toxtocks.com all the features we have here including my education feature as well which is absolutely phenomenal like it's all cool about the search feature and being able to compare stocks but what about the education portion oh my gosh these are so phenomenal right like how to value a growth stock here like there's a whole education portions that goes all in depth on how to value a growth stock like so valuable to all these lessons on on ThousandX right if you want access to that plus all my course curriculums my video course curriculums in my private stock group my private Discord chat all that good stuff I'll put it as a pinned comment down there you click on that you fill out a form and uh we'll see if you're a good fit to join us in there maybe maybe next week at sometime okay all righty guys appreciate you joining me much love and have a great