AMD

Summary

We entered AMD at $78 on the view that MI300 gave the market a credible second accelerator source and a re-rating runway. The story de-risked, the stock more than doubled, and we exited at $180 as part of a broader semiconductor de-risking.

Business Overview

AMD designs CPUs (EPYC and Ryzen) and GPUs (Instinct MI300), competing with Intel in the data center and NVIDIA in AI acceleration.

Investment Thesis

1. 01

   The second-source thesis

   Hyperscalers want an NVIDIA alternative. MI300 gave AMD a real seat at the AI-accelerator table, and that optionality was not in the price at $78.

2. 02

   Server share funded the call

   EPYC share gains in the data center funded the AI investment and underpinned a solid base case even before accelerators.

3. 03

   Re-rating captured

   We bought skepticism at $78 and sold belief at $180 — the entire trade was the sentiment swing.

Valuation & Price Target

We exited at $180, roughly +131%, as sentiment turned euphoric across the whole semiconductor complex and the risk/reward inverted.