Quick Read – AMD needs only 7%-12% AI accelerator market share to hit $11-$16 EPS by 2028, with Meta, OpenAI, and Oracle already committing gigawatts of GPU deployments. – NVIDIA’s stock gained 27% over the past year while AMD surged 257%, and AMD’s 12.5% net margin contrasts…
arply with Intel’s ongoing profitability struggles. – China export controls cost AMD roughly $800M in inventory charges, but Meta, OpenAI, and Oracle commitments represent the non-China demand the valuation is actually pricing in. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn’t make the cut. Grab the names FREE today
I keep hitting the buy button on Advanced Micro Devices (NASDAQ:AMD) even though the trailing P/E stares back at me at 207, and I want to explain why in plain terms. My conviction here rests on hyperscalers refusing to let one vendor own 85% of the AI accelerator market forever. The anti-monopoly math only requires AMD to be the credible number two, and the receipts say it already is.
The Anti-Monopoly Math The consensus $11.50 to $16.00+ EPS target for 2027/2028 only requires AMD to hold a 7% to 12% merchant accelerator share, and roughly 12% to 15% of the multi-GPU rack-scale tier, while the total addressable market keeps expanding and EPYC keeps taking server CPU share. Hyperscalers have a self-interest to fund exactly that outcome, because a single-vendor supply chain is a boardroom liability. So they are writing the checks.