People buy stocks, you know. They get excited. They think things will go up. Then, usually, they don’t. But sometimes, just sometimes, a stock hangs around. You hold onto it. Not because it’s good, exactly. Just…persistent. Like a fruit fly. I have one of those with Advanced Micro Devices. [AMD 2.33%]. And I’m probably not letting go. So it goes.
Why This Particular Chip?
Lisa Su, the CEO, is the reason. She took a company that was, let’s be honest, circling the drain back in the early 2010s, and she steered it towards these little silicon rectangles – CPUs and GPUs. Turns out, those things are important now. Especially with all this artificial intelligence nonsense. Who knew?
She focused on making them better. Better than Intel, which was, for a long time, just…there. And she made a run at Nvidia, which had a head start. It’s a competition, really. Like pigeons fighting over a stale crumb. AMD got decent at gaming chips, and then even got into the embedded stuff. Progress, I suppose.
For a while, it looked like Nvidia was going to own the AI accelerator market entirely. But AMD closed the gap. They have this new chip, the MI450, coming out. They say it’ll be better than Nvidia’s Vera Rubin. They always say that. But it might actually be true this time. Or not. It’s hard to tell.
They even got a deal with Meta. Facebook’s parent company. To power their AI infrastructure. More chips, more data, more algorithms. It’s a cycle. A predictable, slightly depressing cycle.
AMD is telling investors they expect revenue to grow at 35% a year for the next three years. The data center part, where they make the AI accelerators, is supposed to grow even faster – 60%. Nvidia’s doing about 65%. It’s all numbers. Just numbers floating in the void.
Nvidia gets most of its money from data centers. AMD still gets a good chunk from other stuff. But that’s changing. They’re becoming more reliant on the AI bubble. Which, let’s face it, is probably a bubble. But everyone’s pretending it isn’t.
The stock isn’t cheap. 77 price-to-earnings ratio. But profits are growing. So, the forward P/E is coming down to 31. Still higher than the S&P 500 average of 29. But who’s counting? It’s all relative. Like happiness.
Holding On
Thanks to the AI craze and the general need for more processing power, I’m probably not selling my AMD stock. Not yet, anyway. It’s not a matter of faith. Just…inertia.
AMD is still behind Nvidia in the AI chip game. But they’re making progress. They’re a competitor. And in a world dominated by a few giant corporations, that’s something. The stock is going up, even as the valuation comes down. It’s a strange, beautiful thing. So it goes.
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2026-03-15 19:03