Artisan Global Opportunities Fund on Advanced Micro Devices, Inc.
Thesis
AMD benefits from rising compute intensity across AI infrastructure and cloud computing. Revenue and guidance exceeded expectations amid robust data center demand, while management raised its long-term server CPU outlook as inference and agentic workloads increasingly use CPUs. The manager added before the rally but subsequently trimmed because the valuation had moved beyond its reasonable expectations. The long-term thesis remains intact despite the reduction.
“We continue to believe AMD is well positioned to benefit from increasing compute intensity across AI infrastructure and cloud computing.”
Key risks
- Valuation had moved beyond the manager’s reasonable expectations.
- Recent semiconductor appreciation may have pulled forward future investment returns.
- The AI hardware sector benefits partly from shortage-driven pricing power that may not persist.