To The Moon

Nvidia has dominated the AI chip market for years. But AMD is starting to give it some serious competition.

On November 3, $Advanced Micro Devices (AMD)$ jumped as much as 8% in after-hours trading after reporting stronger-than-expected earnings. Revenue grew 45%, and its data-center business nearly doubled. But the biggest story isn't just the numbers. OpenAI, Meta and other tech giants are turning to AMD as they look for alternatives to Nvidia.

Some Tiger investors have already made impressive gains from AMD's rally, including one who earned more than $31,000!So what's driving AMD's growth? And after such a big rally, is it too late to buy?

• Congratulations to @GarfieldLee for a $31,593 gain on AMD

• Congratulations to @Hippo Tan for a $11,497 gain on AMD

AMD's AI Business Is Booming

AMD's latest earnings gave investors plenty to celebrate. Third-quarter revenue jumped 45% to $13.38 billion, beating Wall Street's expectations. Adjusted earnings reached $2.09 per share, also ahead of estimates.

The real standout was its data-center business, where revenue surged 97% to $8.55 billion. That's important because data centers are at the heart of the AI boom. Companies like Microsoft, Meta and OpenAI are spending billions building the infrastructure needed to train and run increasingly powerful AI models.

And AMD is getting a bigger piece of that spending.The company expects fourth-quarter revenue of around $17 billion, above Wall Street's forecast. CEO Lisa Su also expects revenue growth to accelerate further in 2027.

For investors worried that the AI boom may be slowing down, AMD's results offered some reassurance: demand for AI computing remains strong.

Why Are Tech Giants Turning to AMD?

For years, Nvidia has been the clear winner of the AI boom.Its chips power many of the world's leading AI models, and its technology has become the industry standard. But Nvidia's dominance creates a problem for customers. When companies are spending billions on AI infrastructure, relying on just one supplier can be expensive and risky.

That's where AMD comes in. AMD has secured major AI chip agreements with OpenAI and Meta, both involving plans for up to 6 gigawatts of computing capacity.

Microsoft, Oracle and other major technology companies are also working with AMD's data-center technology. These deals matter because they show that AMD is becoming a serious option for companies building large AI systems.And AMD isn't just selling individual chips anymore. Its new Helios platform offers a more complete computing system designed to compete with Nvidia's AI infrastructure products.

Can AMD Catch Nvidia?

AMD is growing fast, but Nvidia is still far ahead.

Nvidia has a much larger AI business, stronger software tools and years of experience working with the world's biggest technology companies.

That gives it an advantage AMD won't overcome overnight.

But AMD has something investors love: room to grow.

As more companies look for alternatives to Nvidia, AMD has an opportunity to win new customers and expand its market share.

The big question is whether it can turn those opportunities into lasting sales and profits.

For now, Nvidia remains the AI chip leader, while AMD is emerging as one of its strongest challengers.

There's a Catch to AMD's Big AI Deals

One aspect of AMD's recent partnerships deserves more attention.

The company hasn't secured all of its major customer commitments through conventional chip sales agreements alone.

As part of its partnerships with OpenAI and Meta, AMD granted performance-based warrants that could allow each customer to acquire up to 160 million AMD shares if specified purchase, performance and other milestones are met.

In its third-quarter results, AMD recorded a $1.07 billion non-cash charge, or approximately $0.66 per share, related to those arrangements.

The agreements help AMD establish long-term relationships with customers capable of purchasing enormous amounts of AI computing hardware.

But they also come with a potential cost.

If the warrants ultimately vest and are exercised, existing shareholders could face dilution.

This raises an interesting question: How much is AMD willing to give up today to secure a larger position in the AI market tomorrow?

The deals could prove extremely valuable if they lead to years of profitable chip sales. But investors should distinguish between headline contract values, actual revenue recognized, and the earnings ultimately attributable to shareholders.

Winning a big customer is important. Turning that relationship into profitable, sustainable growth is what matters for the stock.

AMD Has Doubled This Year. Is It Too Late to Buy?

That's the big question following the latest earnings.

AMD shares had already more than doubled in 2026 before the post-earnings rally. Investors have clearly become more optimistic about its prospects in the AI market.

And there are good reasons for that optimism.

Data-center revenue is growing rapidly. The company's customer relationships are expanding. Helios is moving into production and deployment, while management expects another acceleration in revenue growth next quarter.

But a strong company isn't automatically a great investment at any price.

When a stock has already rallied sharply, investors aren't just paying for today's earnings. They're also paying for a substantial amount of expected future growth.

That leaves less room for disappointment.

There are several uncertainties to watch.

First, AMD needs to turn its ambitious AI agreements into actual shipments. Customer demand appears strong, but the global shortage of high-bandwidth memory remains a potential constraint on production.

Second, profitability matters. AMD expects an adjusted gross margin of approximately 55% in the fourth quarter, compared with 56% in the third. Investors will want to see whether higher AI revenue can translate into stronger margins and earnings over time.

Third, competition isn't standing still. Nvidia continues to expand its full-stack computing platforms, while major cloud companies are also developing their own custom AI chips.

Finally, the broader AI spending cycle remains a risk. If large technology companies begin cutting their infrastructure budgets, even well-positioned chip suppliers could feel the impact.

For investors who bought AMD earlier and are sitting on substantial gains, the next question may be whether the original investment thesis remains intact.

For those considering a new position, it may be worth separating a short-term earnings trade from a longer-term bet on AMD's growing role in AI infrastructure.

A stock that rises 8% after earnings can keep climbing. It can also pull back sharply as investors reassess expectations.

The key is not simply whether AMD can grow, but whether it can grow fast enough to justify what investors are already paying.

AMD's biggest opportunity isn't necessarily replacing Nvidia. It's becoming the second major winner of the AI infrastructure boom.

That could be an attractive long-term story. Whether it's an attractive entry point today is a different question.

💬 Your Turn

AMD's data-center revenue just jumped 97%, and OpenAI and Meta are expanding their partnerships with the company.

If you could buy only one AI chip stock today, would you choose AMD or Nvidia?

Are you buying AMD after earnings, holding for more gains, or waiting for a pullback?

Share your trades, positions and strategy in the comments. Your next winning trade might be featured in our next edition!