AMD CEO Lisa Su Says Customers Are 'Anxious' for MI450 GPU as AI Spending Surges

Key facts

• AMD stock surged about 75% in the last month to around $340.
• CEO Lisa Su stated customers are 'anxious' to deploy the MI450 GPU in data centers.
• AMD expects adjusted EPS to exceed $20 annually within three to five years.
• HSBC downgraded AMD to hold from buy, citing predictable earnings.
• Meta Platforms plans to deploy up to 6 gigawatts of AMD Instinct GPUs over several years.
• AMD announced a deal with OpenAI in October for GPU supply.
• Cathie Wood cashed in on AMD stock ahead of earnings.
• AMD's chiplet architecture is seen as advantageous for AI inference workloads.

Ahead of Earnings, AMD Stock Soars on AI Optimism

earnings within hours, and the stakes could hardly be higher. The company's stock has rocketed about 75% in the past month, pushing the share price to roughly $340 — a level that some analysts call reasonable but others warn is stretched. Investors are betting that AMD will capture a growing share of the artificial intelligence infrastructure boom, a wager that hinges on the company's ability to deliver its next-generation MI450 graphics processing unit. CEO Lisa Su has said customers are 'anxious' to get the MI450 into their data centers, signaling strong demand.

HSBC Downgrade and Cramer's Bullish Rebuttal

Not everyone is convinced the run-up is justified. HSBC downgraded AMD to hold from buy, arguing that the upcoming earnings report is too predictable to sustain further gains. The bank's analysts see limited upside from current levels. CNBC's Jim Cramer pushed back, saying he remains bullish on AMD despite the downgrade. Cramer argued that demand for AI-driven central processing units will continue to propel the stock higher, a view that resonates with many retail investors who have piled into the name.

Long-Term Targets: Adjusted EPS Above $20

AMD's management has laid out ambitious long-term financial targets that underpin the bullish case. In November, Su declared that 'AMD is entering a new era of growth fueled by our leadership technology roadmaps and accelerating AI momentum.' The company expects revenue to grow at an annualized rate of 35% and adjusted earnings per share to exceed $20 within the next three to five years. At the current share price of around $340, the stock trades at roughly 17 times that earnings target. While not cheap, it is a multiple that many investors consider reasonable for a company growing at such a clip. Over the past six months, AMD's stock traded between $161 and $264, meaning the current level represents a significant premium.

Chiplet Architecture and AI Inference Advantage

AMD's competitive edge lies in its chiplet architecture, which allows the company to customize computing solutions for different AI workloads. This is particularly valuable for AI inference — the process of using a trained model to make real-time decisions — as opposed to training, where Nvidia remains dominant. As more companies deploy AI agents and applications, demand for inference-optimized hardware is expected to surge. AMD's ability to tailor chips for specific tasks could help it win a larger slice of AI infrastructure spending, even if Nvidia retains the lead in training.

Major Deals with Meta and OpenAI

Two recent deals underscore AMD's growing traction. Meta Platforms announced it would deploy up to 6 gigawatts of AMD Instinct GPUs over the next several years, a massive commitment that signals confidence in AMD's roadmap. In October, AMD also struck a supply agreement with OpenAI, the creator of ChatGPT. These partnerships are positioning AMD for strong growth over the next five years. They also provide concrete evidence that large-scale customers are willing to bet on AMD as a second source alongside Nvidia, a dynamic that could reshape the competitive landscape.

Cathie Wood Cashes In Ahead of Earnings

Not all prominent investors are holding. Cathie Wood, known for her high-conviction bets on disruptive technology, has been selling AMD stock ahead of the earnings report. Her firm, ARK Invest, cashed in on the recent surge, trimming positions to lock in profits. Wood's move highlights the tension between short-term momentum and long-term potential. While she remains a believer in AI's transformative power, the timing of her sales suggests she sees the current valuation as rich enough to take some chips off the table.

What to Watch: Earnings and the MI450 Rollout

With earnings moments away, investors will focus on two things: the quarterly numbers and any updates on the MI450 timeline. A beat on revenue or guidance could fuel another leg higher, while a miss might trigger a sharp pullback given the stock's recent run. Beyond the print, the market will be watching for signs that AMD's chiplet strategy is gaining traction in inference workloads. If Su can convince Wall Street that AMD is more than just a distant second to Nvidia, the stock's current multiple may prove to be a bargain. is as predictable as HSBC fears, the recent gains could evaporate.

The bottom line

• AMD's stock has surged 75% in the past month, driven by AI optimism and major deals with Meta and OpenAI.
• CEO Lisa Su expects adjusted EPS to exceed $20 within three to five years, implying a forward P/E of about 17 at current prices.
• HSBC downgraded AMD to hold, while Jim Cramer remains bullish, highlighting a split in analyst sentiment.
• AMD's chiplet architecture may give it an edge in AI inference, a growing market segment.
• Cathie Wood sold AMD shares ahead of earnings, suggesting some investors see the rally as overdone.
• and MI450 GPU updates will be critical in determining whether the stock can sustain its gains.