AMD’s Data Center segment surged 57% YoY to $5.8B in Q1, pushing total revenue to $10.3B as growth accelerates. <\/p>\n<\/li>\n
OpenAI and Meta each committed 6 gigawatts of AMD GPU deployments, with Gartner naming AMD the top enterprise AI server CPU provider. <\/p>\n<\/li>\n
Lisa Su doubled AMD’s 2030 server CPU addressable market forecast to $120B as Q1 net income surged 95% YoY, eroding the valuation concern. <\/p>\n<\/li>\n
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and AMD didn’t make the cut. Grab the names FREE today<\/a>. <\/p>\n<\/li>\n<\/ul>\n I keep hitting the buy button on Advanced Micro Devices<\/strong> (NASDAQ:AMD<\/a>) because every quarter Lisa Su gives me a fresh reason to do it again. This is a position I am compounding into, because what she is building inside that data center segment is the kind of structural shift that only shows up in a career once or twice. <\/p>\n The conviction starts with what AMD actually sells now. Server CPUs and AI accelerators going into the largest computing buildout I have ever watched as an investor. In Q1 2026, the Data Center segment did $5.775 billion in revenue, up 57% year over year, and it is now the primary engine of the whole company. Total revenue hit $10.253 billion, up 37.85% YoY, and Su guided Q2 to roughly $11.2 billion, which implies about 46% YoY growth. Growth is accelerating. <\/p>\n Three reasons the buy button stays active <\/p>\n First, the cash machine has turned on. Free cash flow in Q1 came in at $2.566 billion, up 252.96% YoY. Full year 2025 free cash flow reached $5.519 billion, up 129.48%, and AMD repurchased $1.316 billion of stock while doing it. Non-GAAP gross margin sits at 55%, with Q2 guided to about 56%. That is the operating leverage I was waiting for. <\/p>\n Act now:<\/strong> the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and AMD didn’t make the cut. Grab the names FREE today<\/a>. <\/p>\n Second, the customer list now reads like a who’s who of the AI buildout. OpenAI selected AMD as a core preferred partner for 6 gigawatts of GPU deployment. Meta committed to deploy up to 6 gigawatts of AMD Instinct GPUs and is the lead customer on the 6th Gen EPYC Venice\/Verano CPUs. Oracle is standing up a public AI supercluster with Helios and 50,000 GPUs in Q3 2026. AWS, Google Cloud, Microsoft Azure and Tencent are expanding 5th Gen EPYC instances. Gartner just named AMD “The Company to Beat for Enterprise AI Server CPUs.” <\/p>\n Third, the balance sheet lets Su play offense. Debt-to-equity sits at 0.071, interest coverage at 28.2x, and the company runs a net cash position. Shareholders’ equity is $64.462 billion. There is room to invest, acquire, and buy back stock all at once. <\/p>\n The risk I refuse to wave away <\/p>\n Valuation is the real argument against this stock, and I take it seriously. AMD trades at a P\/E of 200 and a forward P\/E of 74. Layer on the China export overhang, where the MI308 restrictions cost AMD around $800 million in Q2 2025 inventory charges, and the bear case writes itself. What keeps me adding is that earnings are catching up to the multiple at speed. Q1 net income grew 95.06% YoY, FY2025 net income grew 164.17%, and UBS just lifted its price target to $300 on stronger server CPU demand through 2030. Su has doubled AMD’s 2030 server CPU addressable market forecast to $120 billion. The denominator is moving faster than the price. <\/p>\n So I keep buying. Stock is up 271.39% over the last year and 148.68% year to date, and I am not waiting for a pullback that may never come on my terms. As long as Lisa Su keeps converting hyperscaler commitments into compounding free cash flow, my buy button stays warm. <\/p>\n Act now:<\/strong> the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and AMD didn’t make the cut. Grab the names FREE today<\/a>. <\/p>\n<\/a> Gene Wang \/ Flickr <\/p>\n