Chip Stock Investor Podcast AMD Q3 2025 -- Do OpenAI and Oracle Deals Warrant A Buy Now?
Nov 6, 2025
The discussion centers around AMD's significant shift towards CPU-driven revenue growth, especially with EPYC sales tripling year-over-year. The potential partnerships with OpenAI and Oracle could generate over $100 billion in the coming years, despite risks tied to the MI400 GPU rollout. Investors are urged to reconsider AMD due to its promising profitability in client and gaming sectors. A new Reverse DCF valuation suggests a compelling future, marking AMD as a strong candidate in semiconductor investments.
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CPU-Led Data Center Growth
- AMD's data center growth in 2025 is driven more by EPYC CPUs than GPUs right now.
- CPU inference demand and stabilized PC/laptop sales are boosting near-term profitability.
Pivot From Buybacks To Revenue Growth
- AMD is shifting from share buybacks to revenue-maximizing moves tied to AI deals with OpenAI and Oracle.
- That pivot includes potential share dilution from an equity award to OpenAI as part of GPU deployments.
Watch Execution On MI400 Scale-Up
- Monitor AMD's execution risk around MI400 GPU deployment and Rock M software readiness closely.
- Watch near-term quarters for signs of successful scale-up before assuming the OpenAI revenue boost is margin-accretive.