Jose Najarro Stocks on $AMD (Oct 31, 2026)

AMD's stock fell by about 11%, Qualcomm's by more than 11%, and ARM's by about 10%.

I believe the biggest opportunity here for those who can benefit is AMD.

This leads me to talk about AMD. Now, for AMD, if we look at their latest second-quarter report, data center revenues reached $16.7 billion. Customer sector revenues amounted to 3.1 billion.

Then they have other revenue streams such as Xilinx products. They made a little bit, I forgot the other figure, but it was a little more than about $11 to $12 billion in revenue.

But we can see that a large part comes from the data center side. And a smaller portion comes from the consumer side.

This is important because you are now witnessing the opposite effect of what is happening with Intel, and let's go back a little to the numbers; For Intel, data center revenues reached 7.3.

Customer segment revenues reached 8.1. So, the customer segment has outperformed it. So, even if AMD were to suffer a hit in the consumer market, it would not face the same immense pressures that Intel did.

If the data center market is larger and growing at the same rate, you will see a larger boost to revenues.

Therefore, breaking down the revenue is important, and I truly believe that AMD will benefit greatly. In the last quarter, they gave us really strong numbers, didn't they? They told us they expect revenue growth of more than 80% in the CPU market in the second half of 2026.

For the whole of 2027, they expect growth of more than 70%, and they confirmed these figures at their September event with Citi. I think it was on September 8th. Yes, September 8th.

Therefore, Intel's loss in not being able to provide server processors could be a gain for AMD if it works with partners who are able to do so. And I truly believe they are working with partners capable of doing so.

At the same time, these figures that they gave us a month, two, or three ago, and that they confirmed a month or two ago, are figures that I believe management would only share if they were confident in the allocations they have.

I think Lisa Su is a very reserved woman when it comes to offering any form of guidance. The market sometimes hates it for that, but for me, it means that the numbers she told us are real numbers, and they are real growth values at the very least what we expect.

Lisa Su told us that the server processor supply chain is currently tight, but she expects things to improve in 2027 compared to 2026. Now, another thing we hear AMD is doing is investing beyond chip orders, right?

They don't just place orders for chips. They are also increasing their supply of advanced packaging. They are working to improve and assist their manufacturing partners. One of the things they mentioned is that they help with joint signing or purchasing equipment to transfer to their manufacturing partners to increase the production they can obtain, right?

They do this a lot for their server processors, specifically the "Venice" which is based on 2nm technology, but AMD is giving us a plan that assures us that we will not be left behind in any way.

Apart from that, production capacity is still less than AMD aspires to, and this is where the problem lies in the shortage. We may hear some discussions in the future about average selling prices rising significantly, as we have seen in the memory sector, but I don't think Lisa Su will go too far down that path.

Here we can see all of AMD's server processors that are of interest to us right now, and I think even the 7nm ones are entirely dependent on TSMC's production.

The upcoming products, "Venice" and "Verona," will be part of TSMC's 2nm production line. Again, other types such as "Taurin," which are based on 4nm and 3nm, are also manufacturing lines that TSMC is working to improve its production capacity.

The downside here in working with TSMC is that you share some supply chain lines with a lot of other players, right? Companies like Nvidia, Broadcom, and all those who are working on building supply lines for CPUs and GPUs.

So, AMD can't have it all, but if I had to choose a player right now, I think AMD's partnership with TSMC is a bigger advantage than Intel having its own manufacturing line and then unfortunately failing to achieve the success or execution that was expected.

Epic's processor customers continue to make gains. I mean, we see Meta deploying millions of Epic processors. Oracle has also just announced huge orders for Epic processors. Everyone uses "Epic", right?

It is very rare to hear that when we talk about market share in x86 processors, AMD wins, and due to supply chain constraints, I think it will continue to grow much faster than others.

As a long-term investor in AMD, I don't know if the company will deliver impressive results in these upcoming earnings. But what I do know as a long-term investor is that they are building the foundations, aren't they?

That is the basic rule to be able to win throughout this entire course. So, these profits might not be crazy, and although Intel's profits were crazy on the other hand, the future guidance might be crazy.

The guidelines for next year might improve, right? As long as you give me those optimistic feelings, that's what I'm looking for as a long-term investor.

For me, if I had to choose one player who could benefit in the near term, it would be AMD. AMD already holds market share, is working very well with supplies, and is shipping a lot of production.

AMD, the same thing . If they don't meet expectations, it's not the same thing. Quite the opposite. If AMD doesn't meet expectations, yes, we will see some contraction. So, if nations do not fail but rather exceed expectations, there will not necessarily be a huge rise either.

So, personally, if I had to choose one, or if I had to choose by level, I think AMD would be my first choice.

As for AMD, as a long- term investor, I believe they will continue to gain market share. I believe their partnership with TSMC will be a tremendous asset in addressing the processor shortage.

So, I'm extremely excited. Stock prices may continue to fall. Regardless, as a long-term investor, I'm here for the promising plan. Comments from Lisa Su, understanding her plan, and finding out if there are any changes in the processor market, or any changes in revenue forecasts.

If you give us lots of great numbers, then no matter what the stock does, I will remain a strong shareholder.