$Advanced Micro Devices(AMD)$ is a 3x opportunity everybody ignores.
Data center revenues are exploding, margins are expanding, and its tech stack is catching up with Nvidia.
Here is why AMD is a great opportunity now: 🧵
1/ AMD was surprisingly late to the AI race...
It was too busy taking CPU market share from Intel, so it missed the GPU revolution.
It's catching up as hyperscalers don't want to depend solely on $NVIDIA(NVDA)$ .
Result? AMD data center revenues are exploding:
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2/ AMD was behind of NVDA for two reasons:
- Hardware tech.
- Parallel computing ecosystem.
AMD actually had the upper hand in the hardware stack as they perfected the chiplet design.
Hear Microsoft VP of AI frameworks praising AMD hardware:
3/ AMD had hardware expertise because they mastered the chiplet design.
What the hell is that?
In a chiplet, cores and memory controllers are put on different dies that are then connected with high-speed interconnects.
That allows us to use less advanced processes for I/O interfaces and memory controllers than cores.
Result? Cheaper chips with higher yields.
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4/ AMD had just one weakness in hardware:
Nvidia had NVLink, which connects GPUs in the same server with ultra-low latency and high bandwidth.
This enabled the building of huge GPU clusters made up of Nvidia GPUs.
AMD is catching up...
It created a new interconnect: UALink.
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5/ UALink destroys Nvidia's NVLink moat.
It was developed by a collaboration of chip designers and hyperscalers.
It's based on AMD's Infinity Fabric technology.
It can connect 1,024 GPUs while NVLink can only connect 576.
What's better is that it's an open standard.
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6/ This leaves the software stack CUDA as NVDA's main competitive advantage.
AMD is catching up on it, too.
AMD open-sourced ROCm, which will accelerate its adoption.
It focused on inference optimizations, and AI kernel performance doubled in just a few months.
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7/ We can see this in the data.
In DeepSeek, AMD MI300x delivers more than twice the throughput performance of Nvidia's H200.
This is just the beginning..
AMD is dominating in video generation too.
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8/ Higgsfield run tests on both Nvidia H100 and AMD MI300.
9/ Higgsfield AI CEO personally emphasized AMD's superior inference performance.
10/ Valuation is ridiculously cheap.
AMD generated $25.8 billion in revenue last year.
As the demand is exploding, it can easily grow revenues by 20% annually for the next 5 years.
This will give us $64.2 billion in revenue in 2030.
At a 30% net margin, we will get $20 billion in net income.
At 25 times earnings, we get a $500 billion company, it's currently valued only at $155 million, an easy 3x opportunity.
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