AMD Just Announced This: Game Over (URGENT)

[00:00:00]Holy smokes, AMD's stock is finally back on fire and right now the stock is up by more than 2% and I think that AMD's stock is very well positioned for the coming 6 months. So, in today's video, we're going to be discussing why the stock went up today, what is really driving the moment. There are two key reasons behind that and what is really expected for the future of this company.

[00:00:22]So, today AMD announced two critical things. First, partnership with Microsoft and then second, partnership with Anthropic or the maker or the company of Claude. So, these two announcements are very very important.

[00:00:36]Not that just the announcements themselves, but the precautions and the things that it could have into the future and what it could imply into the future and how AMD would benefit from that and you know, that would significantly affect AMD's valuation.

[00:00:50]So, if you are invested in AMD or are interested into investing in AMD, this video is very critical for you to keep an eye on. So, watch the video till the end and now let's get right into this.

[00:01:00]So, without further ado, welcome everybody to the Geeky Investor where stocks talk and we translate. This is Dr. Waice and I've been invested in the stock market for the past 9 years and you know, just for reminders, I'm invested in AMD and I've been invested when the stock was below $150 a share and I was sharing all of that on the YouTube channel right here encouraging everybody to buy and load AMD. Of course, that was only my opinion and now again today, I still believe that AMD is still showing us a very good investment opportunity in my opinion.

[00:01:34]So, the two things that were announced, number one is the partnership with Microsoft. So, this partnership is more with Azure, which is the cloud part and it includes both the epic processors and the Instinct GPU. So, both the CPUs and the GPUs and guys, remember guys, this is very important. AMD has got the CPU business and the GPU business and we know already with the data center business and the AI, the GPU demand is so, so high. But, we have heard recently that the CPU business is expected to have a lot of growth in the coming 5 years. And now we are already seeing real results on that. We can see that that AMD has partnered with Microsoft Azure specifically on the epic processor. So, you can see on the CPU front and then also on the GPU front when it comes to the MI450, which is the new GPU product for the data centers that AMD has released just right now in the second half of 2026. So, as you can see right here, already AMD is achieving a very nice result with the MI450 initiating right now or kind of started right now in the second half of 2026. And we can see that the CPU business is also doing well for AMD. If you look at the announcement by itself, there are a key things a couple of key things that I would like to show you and highlight right here. So, let's read this. As you can see, AI workloads are scaling faster than any single infrastructure approach can support.

[00:02:59]With more models, new agents driven workloads, and surgical or sorry, surging compute demand driving the need for greater specialization across the stack. So, as you can see right here, there is a lot of demand and growth coming for this compute high compute power, which is, you know, inclusive of the data center business. Now, as you can see, because this is expected to continue for the coming at least 2 to 3 years, you can you can expect a lot of demand for the MI450. And guys, just imagine what is going to happen after the MI450. Do you think Lisa Su and the CEO Lisa Su, CEO of AMD, and the management from AMD will stop at that time? Of course not. They will continue reiterating and coming up with new models that are even better than the prior ones with the MI455 and then the MI500. Things are just going to keep rolling one after the other. So, I think that AMD is very well positioned for the coming 1 to 2 years at least in my opinion. So, this is one thing and then also it also goes on to say that this announcement right here is expected to provide customers with comprehensive, open, and heterogeneous platform to achieve the best performance, cost, and energy efficiency outcomes. So, guys just to keep this just brief, it is just showing you that you've got, you know, heterogeneous demand, you know, we've got Microsoft has got some of you know, other suppliers supplying the processors and the you know, overall data center components, but AMD is one of those because, you know, you cannot rely on just one customer. So, that also leads me to one of the things that I'm going to tell you that towards the end of this video is that Google itself, although they have their own TPUs and they also partnered up with Nvidia to some extent, I believe that eventually they will also be one of the coming partners for AMD.

[00:04:47]New and new partners will keep flowing into AMD. Those large hyperscalers will partner with AMD in my opinion. At least some of them, maybe Google is the next one in the list in my personal opinion.

[00:05:00]Now, the other key announcement that was announced is the Anthropic partnership, which is really, really significant.

[00:05:06]Guys, we're we're going to break those down in a table as you can see right here in just a moment, but before I do that, I ask you please that you smash the like button and subscribe to the channel right here. I need all your support. This channel has been stagnating. Let's get this to 1,400 subscribers with this video. So, let's get back to the video. As you can see right here, now with Anthropic's announcement, what they said is AMD will invest up to $5 into Anthropic and exchange Anthropic will deploy up to 2 gigawatts of MI250 GPUs. So, basically what this tells us is that it has two sorts.

[00:05:45]Overall, it kind of looks similar to what AMD has already done with OpenAI from ChatGPT's parent company and what they have already done with Meta, Facebook, right? So, basically now AMD has partnered with Anthropic so that, you know, Anthropic will deploy up to 2 GW of MI450 GPUs starting in the second or starting in the first half of 2027, so in just 6 months from now. And then also, in return, AMD will invest up to $5 billion into Anthropic. Now, maybe you would say, you know, that is a large amount for AMD to put, but if you look at AMD's capital investments and the cash flow statements, if you as you can see right here on stockanalysis.com, this is the cash flow statement and if you look at the operating cash flow, just basically telling you how much AMD is able to generate income from the operations. So, operating cash flow or operating operating cash flow, to be more specific, is $9.7 billion for AMD. So, if they make $9.7 billion a year, it is easy for them to pay $5 billion, right?

[00:06:50]And if you also look at their balance sheet, it also supports that. If you look at the cash and short-term equivalents, it is up to $12 billion.

[00:06:57]So, $5 billion is a piece of cake, in my opinion, for AMD. They are easily able to do that without raising any capital or, you know, diluting us as shareholders. So, this is nice. And also, guys, remember that Anthropic itself is one of the rising companies out there when it comes to the market capitalization and almost the market cap has reached up to almost $1 trillion.

[00:07:19]So, if the market capitalization of Anthropic's grows, well then AMD's investment will grow and that means they will have more profits and hence us as investors or of AMD or potential investors of AMD, if you are not already invested, well that just tells you that you will have even more profits when it comes to AMD.

[00:07:39]Because let's look right here into the announcement. So, this is important to keep an eye on. So, the first gigawatt, as you can see right here, will be deployed in the first half of next year.

[00:07:48]So, basically between Jan and June of 2027. Now, if you go on to read the announcement right here, it tells you that it said in May that its run rate revenue topped $47 billion. This is for Anthropic. So, Anthropic is right now making almost $47 billion a year when it comes to its run rate, right? That is up from almost $10 billion a revenue in revenue in the last year. So, in 1 year, you know, you know, Anthropic was making $10 billion and right now it is 47 billion dollars. So, this is up more than 400% in just 1 year. So, as you can see, Anthropic is growing very fast and AMD is already invested into that and and we know that the market cap of Anthropic almost $1 trillion. It might have a potential IPO, a massive IPO coming as soon as this year. So, if you know, that happens, if there is still kind of demand and sentiment on the AI and data center business and the chips, well, then you can expect Anthropic's valuation to go up and hence AMD's, you know, investment to go up. So, by itself, the investment into Anthropic will probably be beneficial over the long term. And then second, Anthropic will purchase up to 2 gigawatts and that is maybe 30 to 40 billion dollars in total revenue for AMD. So, these are phenomenal numbers, guys, for AMD. So, let's just recap. You got, you know, AMD's partnership with Microsoft. You got AMD's partnership with Anthropic.

[00:09:18]And you guys also remember, we got AMD's announcement with Meta and with with OpenAI. So, you can see all of these announcements coming from very, very large and important customers.

[00:09:28]It just tells you that AMD is in the right track, guys. Their product is just amazing. If you just, you know, read the reviews on that, their a center product, the Instinct MI250. It is just one of the best products out there, you know, with the efficiency, with the price to price to quality, and you know, how much performance it helps you. It just tells you that AMD is very well positioned for the coming 12 to 24 months. And also, remember that those hyperscalers, so for example, Google, they do not have to supply to depend on only one supplier, for example, Nvidia, or maybe even if they have their own parts, which is the TPUs for Google, I think they should also have another source of supply, which could potentially now be AMD, because it has got the full rack-scale solution, which is the CPUs, GPUs, and the the system inclusive of the ZT systems, and the mixed acquisition that we talked about in a future in a in a previous video. So, you got all of this rack-scale solution, this Helios rack-scale Right now, we can already see those signs, and we will expect to see those signs for the next, you know, 12 to 24 months. So, just looking at the numbers right here, guys, just look at the table that I summarized for you right here. As you can see, AMD and OpenAI and Meta as well, they have up to 6 gigawatts by themselves.

[00:10:49]Anthropic's deal is smaller, so 1/3 of that, up to 2 gigawatts of power. Uh that is mainly the MI250 products overall. But then also, if you look at the revenue for OpenAI deal and the Meta deal, it is almost 100 or 120 billion dollars in potential revenue. But when it goes to Anthropic, it is around 30 to 40 billion, in my opinion. We do not have an exact number, but that is what I'm roughly expecting. And then also, if you look at the deployment timeline, OpenAI multi-year agreement through 2030, you can see Meta starting on the second half of 2026. So, right now, we will already be seeing a lot of profits coming from Meta and AMD's partnership.

[00:11:27]And then also, for Anthropic, this is in the first half of 2027. So, guys, a lot of excitement is expected for AMD. AMD is very well positioned. I'm already, uh, you know, invested in AMD when it was below $150. I keep and I will still hold my investment in AMD. I told you guys when I would consider selling in a in a prior video. For now, I'm holding my stock.

[00:11:50]Just as a reminder, please, guys, smash the like button and subscribe to the channel right here. I need all your support. I think AMD is very well positioned. Let me know what you think in the comments down below and I will see you in our next