I had presented a short thesis on AMD about 3-4 weeks ago (attached), highlighting the "Buy The Dip" opportunity that the market had given to us in the high $70 range. With some help from bullish market spirits, and some strong stock fundamentals, that trade worked out very well quickly. $AMD trades at $103 as I write this.

Here's my last post:

As for Q2 Earnings:

Compared to previous quarters, this wasn't anything special. But as mentioned in my last post, AMD only has to execute against their own expectations reasonably well to deliver long-term alpha. The multiple has compressed to a forward P/E <20x before, but even today's 24x leaves room for long-term expansion. Perhaps a 20% IRR if not a 30%+, or the 50% 12-month alpha potential I pointed out.

While some profit taking might be warranted depending on your position size, I reckon it's still worth staying with the stock as the same old thesis continues to play out: market share gains vs Intel, particularly in data center and enterprise back-end spaces. Perhaps the most important thing to note is that the company remains "underrepresented" in this particular vertical with 10s of billions in opportunity, and a $135B TAM. Meanwhile Intel $INTC has specifically said that their data center growth will be slower than the data-centre market growth for the next two years. Big ships take time to alter course. If the competitive space was murky a month ago, it got a little clearer last week.

So the same old thesis stands, although with a less pure alpha available to investors compared to a month ago. There's such a long growth runway to go and it should pay to bet on the winning trend here. The following part of the Q2 transcript stood out to me:

I'm staying long $AMD.