Why should AMD be followed? Three numbers explain it:

Revenue growth of 36% in the third quarter, mainly driven by data center chips (Epyc processors + MI350 GPUs). Large orders from OpenAI and Oracle have just been signed, and there are no issues on the demand side.

The profit margin is huge—Nvidia's data center GPU gross margin is over 50%, while AMD's is only 10%, making the growth potential clear.

The most critical factor is cash flow: the free cash flow in the third quarter has tripled year-on-year, and analysts expect it to reach $31 billion by 2029, with an average annual growth rate of 66%. Based on the free cash flow valuation for 2029, the current stock price PE is only 12 times, which is indeed cheap compared to the demand for infrastructure-level.

The stock price has risen by 88% in half a year, which seems a bit high, but it has actually only absorbed the recent jump in cash flow. If it can truly meet expectations, there is still room for imagination in the next 5 years.