u/LocalExamination6691 ·
Reddit — r/stocks
· March 01, 2026 at 13:48
· ⬆ 29 pts
· 💬 7 comments
| View on Reddit ↗
AI Summary
Summary
The post presents a bullish thesis on AMD, arguing it is significantly undervalued based on CEO Lisa Su's forward-looking statements and track record.
The author's core argument is that if AMD's CEO achieves her stated goal of a 5x increase in EPS over the next five years, the stock price should multiply significantly by 2030.
Quality assessment: This is speculation based on forward-looking management commentary and high-level valuation comparisons, not in-depth due diligence (DD).
Score29
Comments7
Upvote %91%
▶ Full Post Text
I have been running the numbers a lot for this stock and analyzing exactly what Lisa Su has been saying.
Putting it simply a couple of things stand out that make this stock seem crazy, crazy underpriced right now.
1.) She said EPS of 20+ in the next 5 years. Current EPS is 4.17. Thats almost 5X eps in 5 years.
5X EPs growth forecast by a CEO is frankly insane and normally I would just call it hype but...
2.) Lisa su is known for sandbagging and underpromising. She just is not a hype merchant, or at least never has been, maybe shes changing her tune? But in the past she has always underpromised and undersold AMD's performance
When you combine this with the fact that AMD has signed two huge deals with two of the biggest data centre customers, the stock seems nuts? Even with the warrants (which I imagine are baked into the 20+eps estimate by Lisa Su), and all the fear of "AI Bubble". She seems preety confident that this income and revenue is real.
Amd has a current Price to sales of like 9x , avgo and Nvda 20x/30x...
I get that their margins and income are what make their stocks so desirable, but AMD appears to be on the cusp of generating some nuts income (each quaterly report their margin has been rising slowly).
If Lisa su hits her targets, which she normally does, then this stock should realistically 2X-5X by 2030? What am I missing? The customers are there. It seems only supply chain issues or delays could be a risk now?
CEO Lisa Su has forecasted a potential EPS of $20+ within 5 years, a nearly 5x increase from the current $4.17 EPS. She is also known for under-promising and over-delivering. This massive EPS growth, if realized, is not reflected in the current stock price, especially when compared to the higher valuation multiples of competitors like NVDA and AVGO. This suggests the stock is "crazy, crazy underpriced." The combination of a credible CEO's ambitious but achievable growth targets and a relatively lower valuation presents a compelling long-term investment opportunity for significant capital appreciation (2x-5x). The CEO's forecast could be overly optimistic or fail to materialize. Supply chain issues, execution delays, or a broader "AI Bubble" bursting could negatively impact performance and invalidate the thesis.
The author points out that Broadcom (AVGO) trades at a high Price-to-Sales (P/S) multiple of 20x. This valuation is used as a direct comparison to highlight how "underpriced" AMD appears at a 9x P/S ratio, suggesting AVGO's valuation is less compelling. The post frames AVGO as an example of a highly-valued peer, implicitly suggesting that the investment opportunity in AMD is superior from a risk/reward perspective. AVGO's diversified business model and strong market position could justify its premium valuation, allowing it to continue performing well.
The author notes that NVIDIA (NVDA) trades at a much higher Price-to-Sales (P/S) multiple (30x) compared to AMD (9x). While acknowledging NVDA's high margins and income justify its desirability, the author's focus on AMD's comparatively low valuation implies that NVDA's multiple is extended and less attractive. The post implicitly suggests that AMD is the better value play in the semiconductor space due to its lower relative valuation and high growth potential, making NVDA a less appealing investment by comparison. NVDA could continue to execute and grow into its valuation, maintaining its market leadership and premium multiple, causing it to outperform AMD.
This Reddit post, published March 01, 2026,
features u/LocalExamination6691
discussing AMD, AVGO, NVDA.
3 trade ideas extracted by AI with direction and confidence scoring.