- 3 Big Scoops
- Posts
- 🗞 Stock Pick #2
In partnership with
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 6,068.50 ( ⬆️ 0.034%)
Nasdaq Composite @ 19,643.86 ( ⬇️ 0.36%)
Bitcoin @ 96,161.81 ( ⬇️ 0.6%)
Hey Scoopers,
Today’s edition unveils our second pick of 2025, Advanced Micro Devices. So, let’s see why we are bullish on the chip-making giant.
Our first stock pick of the year was Uber, which is already up 20% in 2025.
This tech company grew 32,481%...
No, it's not Nvidia... It's Mode Mobile, 2023’s fastest-growing software company according to Deloitte.
Just as Uber turned vehicles into income-generating assets, Mode is turning smartphones into an easy passive income source, already helping 45M+ users earn $325M+ through simple, everyday use.
They’ve just been granted their stock ticker by the Nasdaq, and you can still invest in their pre-IPO offering at just $0.26/share.
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.
The AMD Chronicles: A Silicon Valley Soap Opera 🎭
Let's face it, folks - AMD has spent more time playing backup dancer to Intel than anyone cares to remember. But oh, how the tables have turned!
While everyone's been obsessing over Nvidia's AI party, our plucky protagonist has been quietly building its backstage pass to the biggest tech show in town.
The MI300X and MI325X chips aren't just fancy silicon - they're AMD's Grammy-worthy attempt to crash Nvidia's solo performance.
And guess who's buying tickets? Only little companies like Microsoft and Meta (no big deal, right?).
The Numbers Game: A Tale of Two Segments
Here's where things get spicier than a semiconductor running at full load. AMD's 2024 performance was like watching a movie, with half the scenes being Fast & Furious and half being Driving Miss Daisy.
The data center business? Vrooming ahead with a 94% year-over-year growth to $12.6 billion in 2024.
However, the gaming and embedded segments declined by 59% and 13%, respectively. Talk about a split personality!
A Strong Performance in Q4
In Q4 of 2024, AMD’s revenue jumped 24% year-over-year to $7.66 billion (not too shabby!), while adjusted EPS moonwalked its way up 42% to $1.09.
The real showstopper? Those juicy adjusted gross margins climbing 320 basis points to 54%. That's like upgrading from economy to business class while paying the same fare!
But here's where the plot thickens: While growing an impressive 69% year over year to $3.9 billion, the data center segment actually missed analysts' expectations of $4.14 billion.
Oops! It's like showing up to a party slightly underdressed - still looking good, just not what everyone expected.
The client segment, meanwhile, strutted its stuff with a 58% growth to $2.3 billion, proving that AMD can still work the PC runway like a pro.
Looking ahead, AMD's crystal ball shows revenue between $6.8 billion and $7.4 billion in Q1 of 2025 - a 30% growth at the midpoint.
Ambitious? Yes. Impossible? Lisa Su doesn't seem to think so, and she's been right more often than your local weather forecast!
Here's why $AMD is all set to rally in 2025 👇
Between 2024 and 2027, the tech stock is forecast to increase:
👉 Revenue from $25.8 billion to $44 billion
👉 Earnings from $3.31 per share to $7.8 per share
👉 Free cash flow from $2.4 billion to $11 billion
If AMD is priced at 30x trailing FCF, the stock will double over the next three years.
The AI Gold Rush: Mining for Digital Nuggets
Listen up, prospectors! While Nvidia's been selling shovels at premium prices, AMD's been crafting its gold-mining equipment at a discount.
The MI350X is coming sooner than expected (surprise!), and its promising performance gains would make even Moore's Law blush.
We're talking 35 times the oomph of its predecessor. Unlike the gym membership you bought in January, this commitment to AI is actually showing results.
Is AMD Stock a Bargain Bin Treasure?
Here's the tea: AMD's trading at a forward P/E of about 23.3x, basically matching the S&P 500's average.
That's like finding a Ferrari priced the same as a Toyota Camry - something doesn't add up.
With AI demanding more chips than a Super Bowl party, this valuation feels more disconnected than your grandma trying to use TikTok.
What's Next for Team Red?
The plot thickens in 2025! CEO Lisa Su (tech's favorite straight-shooter) initially predicted $2 billion in GPU sales for 2024 - they hit $5 billion instead.
Now, she's talking about "tens of billions" in the coming years. That's not just moving the goalposts; it's building a new stadium.
With over 100 commercial platforms set to launch using AMD's AI-enabled Ryzen chips and data center customers lining up like it’s Black Friday, the future looks redder than AMD's logo.
Bottom Line: While everyone's been watching Nvidia's highlight reel, AMD's been quietly building its blockbuster.
Sure, it has some plot holes (look at you, gaming segment), but with AI chips selling faster than concert tickets and a valuation that seems stuck in 2020, this might be the sequel that outperforms the original.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.