$AMD · Meet Kevin · 2026-11-03

Big companies like AMD, Apple, Intel, and of course companies like SuperMicrosoft and others, have just announced their earnings,

We just got AMD's earnings, and they were amazing. The profits were fantastic and exceeded expectations by about 4.5 percent in their forecast for the next quarter, with sequential growth expected to reach about 27%. Very good.

However, they have less ability to conduct circular financing as Nvidia does. They have approximately $500 million in free cash flow. This is in no way comparable to the free cash flow that Nvidia possesses.

They are now talking about competition from chip designers such as AMD and Nvidia. It is a product with a high profit margin.

It's somewhat similar to the pricing power you see at AMD. We can look at those ratings in a moment, but let's move on to AMD's numbers here . What do we see here? First and foremost, they have the most up-to-date revenue I've ever seen. 1337, that's a truly amazing number.

I admire that very much . But their sales costs, and essentially we will calculate their profit margin here. Their gross profit margin has grown to 54%. Last year, they were at a gross profit margin of 51.7%.

So, pricing power is increasing for these chip designers and device vendors.

Apple , AMD, and SuperMicrosoft have outperformed in profits, significantly so, and have raised their expectations for the number of servers they will install.

All of this work will be running on AMD chips,

Okay, I'll tell you. AMD and Apple, I love them. I have investments in both of them. They are not the cheapest options at the moment.

and if AMD is at around 1.25, then where are the bargains, Kevin?

Brother, AMD's profits were fantastic. Guess what happened to the computers? It has declined significantly. I'm not joking with you. It is perfectly clear here. The entertainment devices and systems sector declined by 8 % year-on-year.

Yes, that's why Intel was also affected. This has nothing to do with artificial intelligence. In my opinion, it is a sign of the power of artificial intelligence. Artificial intelligence is so good that it drives up the price of random access memory (RAM).

As a result, what happens? Okay, here you are. You are now achieving great success in everything, even with the absence of consumer purchases. Data centers have almost doubled here at AMD, and that's fantastic.

So, where does AMD stand in this field? AMD is present through its "Halo" platform, which is the foundation for artificial intelligence in enterprises. Their platform, "Halo," like AI Max Pros, can be integrated into small or larger computers.

I am a big fan of what AMD can build, and you can use a lot of these products. Now, in some small computers, AMD chips cost no more than $25, so the profit margins are slightly lower.

This sector has a significantly lower profit margin than data centers.

Let's take another quick look at AMD, and we'll look at some other stocks here. Well, if you take AMD’s earnings report that just came out, there’s another thing I can see here which is that they want to get into the space chip business that can stay in space for 15 years.

I made a small note stating that they would of course like Elon Musk to spend on their chips, although Elon says that in the space chip partnership they want to use only SpaceX, or they want to use only Nvidia.

But AMD knows that Elon will spend money very lavishly. So why not, my dear? Why don't we create a chip that at least attracts Jeff Bezos? Yes. Okay, then. logical. They will spend money like crazy .

Then, we talked about customer data centers , and we talked about how data centers have grown to double, which was impressive. We talked about, let's see, the third quarter revenues .

Ah, yes, okay. So, let's look at the revenue figures, and we can see that if we move to the income statement here, this was quite impressive. Therefore, their sequential growth is 15.9%.

They are expecting this, compared to the last quarter. They expect that between this quarter and the next, the figure will nearly double from 15.5 or 15.9% to 27%. In other words, AMD will experience accelerated growth .

This exceeds expectations. This is one of the reasons why we see AMD rushing back to that legendary line at the 520 level. In my opinion, every time AMD is below the 520 level, you should buy it.

This is not personal financial advice , but this particular line is very attractive because I believe we will stay above it in the long run.

Now, AMD is not the cheapest among these companies. We have its review here. Ah, we have " AM Diesel". Let's see here. AMD, AMD, where did I place my rating for it? I must find him.

So, Apple was at level two based on a higher growth rate . AMD's PEG ratio was 1.2. This makes it twice as expensive as Nvidia. So, this is their PEG ratio based on their future growth of 56% in earnings per share.

It is twice as expensive as Nvidia, but of course it represents a small fraction of its size. Therefore, the argument is that they probably have greater potential for growth. I am a big fan of this.

Instead, invest a little in Marvel, a little in Broadcom, a little in AMD, a little in Apple , and a little in Nvidia.

As a result, buyback operations are negatively affected. Right now, AMD's free cash flow is still already minimal. Ah, their free cash flow and balance sheet, they have enough money to pay their bills, plenty of money to meet their short-term and long-term obligations.

So, this is not a problem. But the free cash flow is only 554 million. This is why they tend to offer their shares rather than actually offering cash to invest in companies as Nvidia does.

So they will go to a company like OpenAI and say, "Hi, partner with us and we will give you options to buy AMD shares for one cent." These are called "stock guarantees" when they relate to a company , right?

Then, as you know, you don't see buybacks here either. AMD also incurred additional debt of $4.7 billion . So even AMD is saying, "Wow, this is the defining moment, man." We need to spend more money. Let's borrow more and grow more.