Traders Bet Big on Lisa Su: Why This Chip Titan Is Primed to Siphon Nvidia’s Data Center Dominance

I support hitting the bargain fastener connected AMD due to the fact that Lisa Su has stopped chasing NVIDIA and started co-designing the adjacent signifier of AI infrastructure alongside it. Every fewer months I archer myself the presumption is full, and each fewer months AMD (NASDAQ:AMD) gives maine a caller crushed to add. The May net study was the latest one, and I person been adding into it ever since.

Here is what pulls maine back. AMD is simply a afloat integrated rack-scale AI vendor now, with Meta, AWS, Google Cloud, Microsoft Azure, Tencent, and OpenAI each signing multi-year roadmaps against EPYC CPUs and Instinct accelerators. The Meta woody unsocial covers up to 6 gigawatts of AMD Instinct GPUs, the OpenAI concern different 6 gigawatts, and Oracle is lasting up the archetypal nationalist AI supercluster connected Helios with 50,000 GPUs successful Q3 2026. That is the portion of the communicative I deliberation the marketplace inactive underprices.

The numbers that support maine buying

The archetypal crushed is the engine. Q1 2026 gross came successful astatine $10.25 billion, up 37.85% twelvemonth implicit year, with the Data Center conception astatine $5.78 cardinal and 57% growth. Non-GAAP EPS of $1.37, beating the $1.2939 statement estimate. Q2 guidance points to astir $11.2 cardinal successful revenue, astir 46% twelvemonth implicit year, with server CPU gross expected to turn much than 70% twelvemonth implicit year. That is acceleration, not deceleration, successful the aforesaid model the bears swore would crack.

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The 2nd crushed is visibility. Lisa Su told analysts she present sees "tens of billions of dollars successful yearly Data Center AI gross successful 2027" and a server CPU full addressable marketplace climbing to implicit $120 cardinal by 2030, wherever she expects to seizure greater than 50% share. The semipermanent EPS people she enactment connected the array is much than $20. I americium consenting to underwrite that due to the fact that she has delivered each architectural milestone she has promised for a decade.

The 3rd crushed is the equilibrium expanse down the ambition. AMD ended Q1 with $5.59 cardinal successful cash, a debt-to-equity ratio of 0.071, and involvement sum of 28.2x. Full-year 2025 escaped currency travel deed $5.52 billion, up 129.48%, and Q1 unsocial produced $2.57 cardinal successful escaped currency flow, up 252.96%. The institution bought backmost $1.316 cardinal of banal successful FY2025. This is simply a fortress backing an offensive.