AMD Stock Buy Case: Strong AI Demand Despite 25% Pullback

Advanced Micro Devices (AMD) reported its strongest quarter ever and guided 2027 revenue growth above 80%, confirming robust AI chip demand despite a 25% stock pullback. Free cash flow dropped to 4% of revenue due to inventory buildup, new debt, and customer financing tied to the Helios ramp. Semiconductors entered a second bear market amid fears over hyperscaler cash burn, though top firms plan ~$730 billion in 2026 capital expenditures. The analyst upgraded AMD to Buy, citing ~61% upside in a bull case versus ~33% downside in a bear case. New money is better placed in SOXX, where AMD is the largest holding, with SOXL only as a small, time-limited trade.