Sold it all this morning

SUMMARY

Jeremy Lefebvre analyzes AMD's recent developments, including its data center business and future product roadmaps, while expressing optimism about its long-term growth potential. He also discusses Meta's strategic positioning against competitors like Google and highlights the broader implications of AI investments by major tech companies.

MAIN POINTS

• Jeremy discusses the negative sentiment among AMD investors and his reaction as a new shareholder. [0:09]
• AMD's conference call reveals significant business growth projections and the potential of the MI300 and MI350 series. [1:02]
• Lisa Su's commentary on AMD's data center segment highlights its growth trajectory to tens of billions in revenue by 2028. [3:39]
• The MI350 chip's earlier-than-expected launch will likely accelerate AMD's revenue by mid-2025. [5:59]
• Jeremy shares his bull, base, and bear case projections for AMD's stock price from 2025 to 2028. [12:59]
• Meta's founder-driven culture gives it an edge over Google in terms of innovation and adaptability. [21:24]
• Lisa Su's leadership is credited for AMD's transformation from near-bankruptcy to a major industry player. [26:59]
• Major companies like Meta and Amazon are building AI infrastructure, likened to creating future highways for AI applications. [32:11]
• Jeremy rebukes Wall Street analysts for misinterpreting AMD's guidance on its AI-focused data center business. [35:52]
• Meta's immense user base and infrastructure investments position it as one of the most consequential companies globally. [42:23]

DETAILED ANALYSIS

In a comprehensive discussion, Jeremy Lefebvre delves into the latest updates on AMD, offering insights into its current challenges and future potential. He begins by addressing the negative sentiment among AMD investors, noting widespread dissatisfaction with the stock's performance. Despite this, Jeremy expresses optimism about AMD's trajectory and highlights the strategic opportunities presented during the company's recent conference call.

CEO Lisa Su revealed that AMD's data center business, which already operates at a $5 billion run rate, is projected to scale to tens of billions in revenue within the next few years. This growth is bolstered by advancements in AI compute demand and the upcoming MI350 chip, which is expected to launch earlier than anticipated in mid-2025. Jeremy emphasizes the significance of these developments, calling them game-changing for AMD's long-term prospects.

As a committed investor, Jeremy outlines his bull, base, and bear case projections for AMD's stock price between 2025 and 2028. Under his bull case scenario, he forecasts an average revenue growth of 35% per year, potentially placing AMD's stock price between $500 and $575 by 2028. His base case sees a more conservative 30% annual revenue growth, while the bear case accounts for potential setbacks such as recessionary pressures or internal execution failures.

Despite these possibilities, Jeremy remains confident in the company's ability to navigate challenges, citing its robust product roadmap and Lisa Su's proven leadership.

Transitioning to broader industry trends, Jeremy discusses Meta's strategic positioning and its competitive dynamics with Google. He attributes Meta's success to Mark Zuckerberg's founder-driven leadership, which fosters a culture of innovation and adaptability. Unlike Google, which Jeremy perceives as less innovative over time, Meta continually identifies and capitalizes on new opportunities.

Examples include its acquisitions of Instagram and WhatsApp, the development of popular features like Stories and Reels, and the introduction of Meta-branded products such as augmented reality glasses. Jeremy underscores Meta's ability to adapt to market trends, particularly in the face of emerging competitors like TikTok.

Additionally, Jeremy highlights the broader implications of AI investments by major tech companies. He likens these expenditures to building highways, explaining that companies such as Meta and Amazon are laying the foundation for future AI applications. While these investments may not yield immediate returns, they are critical for long-term growth as AI becomes more integrated into everyday life.

Jeremy also critiques Wall Street analysts for their misinterpretation of AMD's guidance, particularly regarding its AI-focused data center business. He points out that Lisa Su's comments about scaling revenue to tens of billions were overlooked, leading to undue pessimism about the company's prospects.

As a shareholder in both Meta and Amazon, Jeremy concludes by praising their strategic initiatives and market leadership. He reflects on Meta's record-breaking stock performance and Amazon's growing advertising business, which complements its cloud and e-commerce operations. Looking ahead, Jeremy remains optimistic about the tech sector's ability to drive innovation and deliver value to shareholders.

He encourages viewers to stay informed and seize opportunities in the evolving investment landscape.

LINKS

• Application for Jeremy Lefebvre's private group and 1000xStocks access.
• Support Jeremy's content and view his stock transactions.
• Workshop on financial independence and quitting your job.
• Free 5-day workshop on becoming a great investor.
• Workshop on identifying 10x stocks.

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