• Advanced Micro Devices (AMD) reported strong third quarter results, posting US$9.25 billion in sales and US$1.24 billion in net income, while also issuing upbeat revenue guidance for the upcoming quarter; recent weeks brought further momentum from major AI hardware deals with OpenAI and Oracle, plus new government partnerships.

• Of particular interest, AMD’s collaboration with the U.S. Department of Energy on next-generation supercomputers underscores its expanding role in sovereign AI infrastructure and high-performance computing innovation.

• We’ll examine how AMD’s robust earnings combined with significant AI and government contracts could reshape its investment narrative.

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To be a shareholder in Advanced Micro Devices, I believe you need conviction in the company’s ability to translate AI and data center momentum, driven by flagship CPU and GPU launches, into outsized, durable growth. The latest quarterly results and upbeat guidance underscore that strength, but the biggest near-term catalyst remains whether AI hardware demand from major players like OpenAI and Oracle turns into sustained, large-scale revenue. The most important risk to watch right now is rising legal and regulatory exposure, including new patent lawsuits; the latest news so far is unlikely to materially shift that bigger picture, but continued developments could alter execution risk.

The recently announced collaboration with the U.S. Department of Energy to build the Lux and Discovery supercomputers feels especially relevant given AMD’s AI focus. This US$1 billion initiative positions AMD as a foundational partner in developing sovereign AI infrastructure, tying directly to current sentiment around its data center and AI accelerator business and supporting the current revenue growth narrative.

On the flip side, investors should not overlook the ongoing litigation risks that…

Read the full narrative on Advanced Micro Devices (it’s free!)

Advanced Micro Devices is projected to reach $46.2 billion in revenue and $9.0 billion in earnings by 2028. This outlook requires an annual revenue growth rate of 18.5% and an earnings increase of $6.8 billion from the current $2.2 billion.

Uncover how Advanced Micro Devices’ forecasts yield a $239.11 fair value, a 4% downside to its current price.

Some of the most optimistic analysts expected AMD to accelerate toward US$59.8 billion in annual revenues by 2028, citing early MI350 ramp cycles and sovereign AI deals as game-changers. This perspective is far more bullish than consensus, so if you want to see how investor opinions can vary widely, explore their assumptions and see if your own outlook may need a refresh after these new developments.