I went on Patrick McDavid's podcast and talked about the AI arms race. I think that this is the single most important thing that the everyday American has to understand is happening right now. There is a arms race that is about to occur which is there is artificial intelligence that is being built at hyper speed and that artificial intelligence is being able to automate away tasks and eventually jobs at a very very fast rate.Elon, he kept saying, "We think that Grock has a way to learn faster than all the o ...

The AI arms race is coming.I discussed with @patrickbetdavid what this means for the average person. https://t.co/zMsv6Acoad ...

Core Viewpoint - AMD is positioned as a secondary player in the AI arms race, trailing behind Nvidia, but it still shows potential for investment despite its current market status [2][4]. Business Segments - AMD's business is divided into three main segments: Data Center, Client and Gaming, and Embedded, with the Data Center segment performing the best [5][6]. - The Data Center segment generated $3.7 billion in Q1 with a year-over-year revenue growth of 57% and an operating margin of 25% [6]. - The Client and Gaming segment brought in $2.9 billion with a 28% year-over-year growth and a 17% operating margin [6]. - The Embedded segment, acquired through the purchase of Xilinx, generated $0.8 billion but experienced a decline of 3% in revenue with a high operating margin of 40% [6]. Revenue Growth and Projections - AMD's overall revenue increased by 36% year-over-year, but future growth is projected to slow down to 27% in Q2 and 23% for 2025 [6][7]. - Projections for 2026 indicate a continued decline in revenue growth to 17% [7]. Margin Improvement - AMD's margins have been under pressure but are showing signs of improvement, which is crucial for its investment potential [8][10]. - Analysts expect earnings per share (EPS) to rise to $5.71 by 2026, up from $1.38 over the past 12 months, indicating strong earnings growth [10][13]. Valuation Metrics - Currently, AMD trades at approximately 28 times forward earnings, which is considered expensive [11]. - When evaluated based on projected FY 2026 earnings, AMD trades at 19.3 times forward earnings, suggesting a more favorable valuation if margin expansion is achieved [13].