In the Discworld of semiconductor stocks, where dragons hoard silicon and venture capitalists trade in enchanted coffee beans1, AMD has been performing a rather nifty bit of alchemy. Its shares have risen like a well-fed balloon toad2, surging 81% in three months after a 2024 that was less “epic triumph” and more “muddy boots in a puddle of uncertainty”. Meanwhile, its rival Nvidia has been playing the part of a particularly smug dragon, hoarding data center gold with the enthusiasm of a goblin at a tax audit.
The data center market is currently the most lucrative dungeon crawl in the tech industry, and AMD is attempting to loot the hoard while wearing a hat that says “I’m not really a dragon, honest”. Its MI300 GPUs are doing the equivalent of brandishing a rusty sword in a battle against a fire-breathing wyrm, but the quest is far from over. Investors, like wise wizards, must watch how AMD sharpens its blade in the coming months.
Wall Street, that great hall of murmuring gnomes and twitchy wizards, is currently betting that AMD’s earnings will grow like mushrooms after a rainstorm. Both AMD and Nvidia trade at a forward P/E of 39, which is the Discworld equivalent of two wizards claiming they both invented the same spell—except one is lying and the other is lying better.
To justify AMD’s share price (which currently smells faintly of dragon-scented incense), investors must keep a close eye on its data center growth. This is the magic potion that could expand margins, boost earnings, and send shareholders into a frenzy of profitable daydreams.
Let us now examine AMD’s strategy to conquer this $500 billion dungeon3, and how it might fare against the dragon Nvidia in the coming decades.
The AMD Data Center Quest
The data center market for AI accelerators is expected to grow to $500 billion by 2028, a rate that would make even the most optimistic Discworld banker weep into their ale. This growth is driven by the shift from AI training (where dragons teach young wizards) to inference (where wizards do the math while dragons nap).
Nvidia, our smug dragon, already provides everything needed to build an AI factory—including software, networking, and hardware. AMD, by contrast, is currently the equivalent of a wizard who forgot to bring their wand but remembered to pack a really good spreadsheet. Nvidia’s data center revenue hit $131 billion last year, while AMD’s grew 84% to $13.9 billion—a tidy sum, but not quite enough to buy the dragon a new hat.
Yet AMD has a trick up its sleeve: cost-effective GPUs. While Nvidia charges the price of a small village for its chips, AMD offers a better cost-performance ratio, which is the Discworld equivalent of selling a dragon-sized sword for the price of a toad. The company is also building a differentiated chip arsenal, including FPGAs from its acquisition of Xilinx, which are like magical toadstool computers that can be reshaped for specific tasks. Amazon, that great cloud-based goblin hoard, has been a major buyer.
AMD’s recent acquisitions of Pensando Systems (which gave it data processing units) and ZT Systems (which gave it 1,200 engineers) are the equivalent of hiring an entire army of goblins to polish the wizard’s boots. If these moves pay off, AMD could see its stock price rise like a phoenix after a particularly bad day at the tavern.
Will AMD Keep Up With the Dragon?
AMD is making the right moves for growth, but let us not pretend this is a fair fight. Nvidia’s data center business is currently 10 times larger than AMD’s, which is the Discworld equivalent of a goblin challenging a dragon to a staring contest and expecting to win.
in the Discworld of investing, the only thing more dangerous than a dragon is a wizard who thinks they’re cleverer than they are. 🐉
Read More
- Gold Rate Forecast
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- Why Tesla Stock Plummeted 21.3% in the First Half of 2025 — and What Comes Next
- Why Are Nicki Minaj and SZA Really Beefing on X? Fans Left Wondering as Rappers Hurl Insults in Sudden Feud
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
- Genshin Impact 5.8 livestream: start times and where to watch
- Meta CEO Mark Zuckerberg Just Assembled a “Super Intelligence Avengers” Team That Could Totally Change the Game in Artificial Intelligence (AI). Here’s Why That Makes Meta a “Must-Own” AI Stock.
- Prediction: This Will Be Palantir’s Stock Price in 3 Years
2025-07-27 11:59