AMD: Why I'm Going From Very Bearish To Confidently Bullish

The author turns bullish on AMD (AMD.OQ), citing multi-billion, multi-year AI infrastructure deals (notably Meta’s 6GW deployment) that could more than double AMD’s current data-center revenue over roughly five years. AMD’s new MI355X GPU is described as a ~3x generational performance step and a lower-cost option for large AI inference clusters. Rising demand for agentic AI is driving CPU capacity shortages and enabling AMD to implement double-digit price increases, which should materially boost gross margins. The note warns of valuation risk—AMD trades at a 1-year forward PE premium to peers including Nvidia—but technicals show a breakout (bullish engulfing candle) within an uptrend, supporting further upside.