Most people are asking:
"Can AMD keep going?"
I think the better question is: Has the AI trade become so crowded that great companies now have to be perfect just to justify their valuation?
💡 My View...? Uh oh!
Today's rally wasn't just about AMD.
It was another reminder that the market is willing to aggressively reward any company with a credible AI growth story.
The opportunity is enormous...
...but so are expectations. Here he goes 🙄
That's why I think investors should spend less time asking whether AMD is a great business (I think it is) and more time asking what level of future success is already priced into the stock.
📊 Why I Think This - Nobody asked you ADZ
• AI infrastructure spending continues to accelerate.
• AMD is executing well and taking meaningful market share.
• Strong packaging demand from TSMC supports the view that AI investment is far from over.
But...
History also tells us that when everyone agrees on a bullish story, expectations can become incredibly difficult to exceed.
A company doesn't need to disappoint for a stock to fall.
Sometimes it simply needs to be "less amazing" than investors expected.
⚖️ That's the difference between investing in a fantastic business...
...and investing at a fantastic price.
For me, that's the debate worth having.
💬 Question for the community.. *About time*
Do you think AMD still offers attractive upside at today's valuation?
Or is the next stage of returns going to depend almost entirely on earnings continuing to surprise to the upside?
Adz 🫡
Modify on 2026-07-01 18:37
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Nobody asked me, AMD definitely didn’t ask me…
…but apparently the market listened anyway. 😅📉