Transcription
There is a CES conference going on today, and mark my words, there's going to be some big innovations coming out for AMD. Everyone is looking at expensive stocks like Tesla and Palantir, which are fine, but if you actually want to get stupid rich and make a ton of money in 2025, AMD is one of the biggest opportunities.
I'm telling you, if you put in just $500 or a couple thousand, this can literally make you life-changing money. There's even more upside in AMD; it's at a 52-week low. I mean, just check out where the stock is at right now— we're under $130 per share. This stock used to be well over $200 per share back in March of last year. So, we're at a 52-week low, and I think AMD is way too cheap for you not to invest in the stock.
So, I respect your time. Let me give you a brief summary of what I'm going to cover in this video. First of all, the AI chip market is projected to grow at a 37% compounded annual growth rate, reaching $227 billion by 2030. AMD's AI product and portfolio are positioned literally perfectly to capitalize on this mega trend, especially with the MI 300 chips coming to market.
Now, the next thing is I'm purchasing more AMD ahead of the CES conference as soon as the market opens up because we're going to see some new things unraveled, and I think the market is going to get excited. I think a lot of investors are going to realize that AMD is not only at a 52-week low, but the fundamentals make sense, and the valuation makes sense.
Let me just point this out: AMD does have its work cut out for it at the CES 2025 conference because competition from Nvidia is stiff. Nvidia has been sucking basically all the oxygen from the market in terms of AMD and Intel—especially Intel, which is trash. Guys, Intel is some garbage, okay?
So, the question is, and the question that I've been talking to my senior tech adviser about—he's one of the Wall Street executives— is how will AMD compete with Nvidia's reported RTX 5000 announcement? The news I've gotten, or the opinion I've received, is that I think AMD will have its own showoff of a new GPU next-gen unit.
So, you know what I'm going to recommend? Two different option plays. One option play I'm going to say publicly is a $130 buy leap option. Now, this isn't that much different from the leap option that I gave you guys a couple of weeks ago because AMD has not done a whole lot in two weeks, which is completely okay. That's the point of a leap option; a leap option gives you that long-term exposure for a lot less capital.
The other play I'm going to announce in my Discord later today, so if you're not part of that, go ahead and check out the first link in the description. I need to see where AMD opens up when the market opens because that's a little bit more of a time-sensitive, shorter-term play. My price target for AMD is $175 per share in Q2 of 2025.
Now, if you do have time, I have a little bit more of a longer summary here. The press conference does take place at 11:00 a.m. PST, so in California time, many of you guys are out there on January 6th, which is today. The company basically explains that AMD's Senior Vice President and General Manager of the Computing and Graphics Group, Jack Wynn, along with other AMD executives, will be joined by partners and customers to discuss how AMD is expanding its leadership across PCs and gaming and highlight the breadth of the company's high-performance computing and AI product portfolio.
So, there's going to be a whole lot of stuff going on with AMD. Expect me to make at least two videos this week on AMD because this is an opportunity, guys. I'm just trying to point you in the right direction, okay? Rather than buying stocks at all-time highs and going for the micro strategies and SMC and other crappy stocks that I told you not to buy, I want you to focus on stocks that actually have good valuations.
Investors have flocked to Nvidia because it's the dominant supplier of data center chips powering artificial intelligence models, but I'm telling you guys, AMD is also a top stock. If you look at where the stock can be, I think $150 is very reasonable, much faster than many people believe. So, I'm buying this hand over fist, bicep over tricep, as I say, right?
I hit the gym—I'm about to go to the gym—I'm making this video in the morning, but I just want to point out that this week is going to be a very interesting week as we start to kick off 2025. As we progress into January, these are the biggest opportunities, and if you play your cards right, you can get extremely wealthy.
I want to say that new investors go for popular stocks, okay? Experienced investors go for valuation and technical analysis. Expert investors like myself—I've been at this for over 10 years, worked at Goldman Sachs, da da da—expert investors seek asymmetric risk.
Let me explain to you what that means. I'm looking for hidden gems where the risk and reward are so mispriced that I can buy at not a perfect time and still make tons of money. It's like buying Amazon years ago; you didn't have to pick the perfect price to make a lot of money on Amazon because the trend was very clear, and the momentum was very clear over a few years, right? Same thing with Apple, same thing with Nvidia. You don't have to time the market; you don't have to have a perfect entry. If you buy a proper company at a dirt-cheap valuation, you're going to make money even if you don't understand technical analysis.
You don't have to be a genius; you just have to be in the right ship. If you're sailing in the right direction, you're coming to America back in the 1900s, and you reached America, I mean, there were a lot of challenges, but you get what I'm saying, right? You go to the land that is the most fertile.
AMD is fertile land. Unlike Nvidia, which derives the majority of its revenue from GPUs, AMD actually benefits from diversified revenue streams, including CPUs, GPUs, and custom chips for consoles. So, the diversification actually makes AMD less vulnerable to short-term market shifts.
I'm buying the stock below $130 per share. I think this is easy money right now. The stock is basically down over the past six months, down over the past year. We're at a 52-week low, and the peak price was over $210 per share. Right now, we're trading for an $80 discount.
So, by buying a leap option for September at $130, if the stock even goes to $150, let me show you actually what this would look like. My portfolio is still hanging around $4.2 million, although we've had a bit of a pullback in the market. My portfolio has done fantastically well because I've started to hedge a little bit with covered calls and such.
But check it out; I'm going to show you the $130 call option on AMD. I'm going to go for the September expiration. September gives me a lot of time—256 days for the story to play out. As you can see, the break-even price is $149, but my price target is $175 in September.
Let's say if we hit $175, we're going to have a $25 profit, and we're only investing $19. So, we're going to more than double our money here, which again, in less than a year, if you can double your money, that's some good stuff. You're going to make some really good gains.
I would say now is the time to buy because I see this really weird dynamic where the better Nvidia does, the worse AMD does. The better Tesla does, the worse Uber does. I see this really big paradigm in the market where investors are just black and white. They're like, "Well, if this happens, then this happens," and they're very almost exaggerated in their returns from one stock versus another.
There's a really huge negative correlation, meaning when one succeeds, one loses. But that's not really how it is. The pie is very big for AI, and both companies can succeed and make tons of money. So, I would say that the downward spiral that we have seen in AMD is definitely overblown, and the reality is there's room for both companies in AI to succeed.
I don't know about Intel; I think Intel's going to go out of business, but not completely. They're going to keep doing bad. By the way, AMD's MI 300 series is set to launch in 2025 and is expected to directly challenge Nvidia's H100 GPUs. Analysts do predict that the new chips from AMD could capture up to 10% of the AI GPU market by 2026.
So, we do have some time for the story to play out, but it's going to represent billions—billions—in incremental revenue. The pullback is more than priced in for competition. Guys, looking at the competition, yes, there is some, but it's priced in already, and the RSI is rock bottom. For AMD, the RSI is extremely cheap.
If I go to the chart right here and show you guys the technical analysis, AMD essentially does not really belong to be here. That's why we can already see that there's a huge jump from $120 up to maybe $128 as we see pre-market here, as we're about to open up to $128—an $8 swing. That's because the RSI is getting really low; like 20 is oversold, 30 is still very cheap.
You can see here how we're kind of bouncing off of the Bollinger Band as well. So, in the short term, you know, it's hard to say what's going to happen. I'm not a genie in a bottle, and I'm not stupid enough to believe—or I don't think I'm smart enough, let me rephrase it—I don't think I'm smart enough to predict day-to-day movements. I think that's some nonsense BS that people try to do.
Predictions in the short term? I'm trying to predict in the long term. I'm trying to get rich—richer. I'm already rich, but I'm trying to get richer in 2025, mainly for you guys. If you're subscribed, I'm going to keep giving you fire plays, and you already know I'm going to make you a lot wealthier because that's the goal. Wealth is freedom, and then freedom gives you the ability to be happier.
So, look, Intel's demise is pretty clear to me. I think the opportunity in AMD in 2025 is clear. The $130 buy leap option for September 2025 is a good pick for me, and literally, this is the only option that I think will literally have the best risk-to-reward ratio that I see.
It's the best because the market is somewhat highish. I can't say we're going to get a crash; I can't say we're going to get a pullback. I'm still bullish. I think it's business as usual. In my Discord sessions, I say it's business as usual; we're holding everything.
Even the leap options that I recommended on Tesla, you know, they've pulled back, but hey, it's kind of funny when you make tons and tons of money and you get a little bit of a pullback. Everyone panics, but you've made tons of money. What do you want? You want me to predict the top? I can't do that. Sorry.
I've predicted a really, really good price where we made six figures, but yes, it's pulled back a little bit. I'm still bullish, though. I think we're still going to get some good movement. The 52-week low is what really stands out for me. AMD being at a really low level is amazing.
Also, I want to say that AMD trades at a forward PE ratio of 25, which is significantly cheaper than Nvidia's PE ratio of 40. This valuation gap underscores that AMD offers similar AI growth exposure at a more reasonable price point. It's just more reasonable.
It's not like it's dirt cheap either; it's not dirt cheap. It's just cheap. Well, I do think it's dirt cheap because a forward PE ratio of 25 is like literally dirt cheap for an AI play, so let me correct myself.
AMD CEO Lisa Su focused on innovation, efficiency, and identifying markets where AMD could excel. I think she's a fantastic CEO. It's actually crazy—did you guys know that Lisa Su and Jensen Huang, the Nvidia CEO, are both from Taiwan? They're both from the same city. Lisa Su has a PhD. It's pretty crazy, right?
It's crazy how certain areas, pockets in the world, just help a certain type of person. It seems like Taiwan, which doesn't make a lot of chips, obviously has grown to the best CEOs ever in mankind when it comes to chips. So, Lisa Su is like the sister of Jensen Huang in many ways; they're like cousins or something.
I think that's a really big sign as well that these two people also have competition between each other. You know, that's really good. It's a really good thing. Competition is a good thing because when you have Lisa Su and Jensen Huang competing in the same pie, trust me, they're rich enough. Believe me, they're both like 100 millionaires.
Trust me, they don't care about money; just like I don't care about money. We do it for the sport, right? We do it for the sport, and I'm excited because it's good to see. It's kind of like a sport; you see Lisa and Jensen, they're both battling it out for AI chips and increasing the market cap and being the best CEO in the world.
She was named the top CEO of 2024. I think there's only good things to come for AMD, and AMD is the only company with a real shot to compete with Nvidia. So, we don't even have a plan B. It's buy Nvidia hand over fist, bicep over tricep, or have some AMD as well.
I think it's going to be a good move, and AMD chips are there for a lot of different parts of the market. They're there for biotech, they're there for automation, they're there for aerospace. I mean, these chips are everywhere, guys.
So, just be smart with where you invest your money. Keep this video short. Enjoy your week. I'm about to make some more videos and more trades. We're about to make a lot of money in January, so be subscribed to the channel.
Check out the description. Also, please be aware that the comment section is full of scammers and impersonators. Unfortunately, there's an ocean of them. I have a team to filter comments, but there's still a lot of them.
So, just look at my description and stay safe. I'll catch you guys in the next one.