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AMD: Compute-For-Equity Looks Dilutive, But It's Actually A Strategic Masterstroke
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AMD: Compute-For-Equity Looks Dilutive, But It's Actually A Strategic Masterstroke

Seeking Alpha·Dhierin Bechai·about 1 month ago
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Home Stock Ideas Long Ideas Tech  Summary Advanced Micro Devices, Inc. has outperformed, exceeding my bullish price target and demonstrating robust growth potential despite dilution concerns. The compute-for-equity deals with Meta and OpenAI could dilute shares by up to 16.5% but preserve AMD's pricing power and enable significant follow-up orders. Even factoring in warrant vesting, AMD maintains 64% upside potential to a $569.28 2027 price target, driven by 36% sales and 63% EBITDA growth rates. Rising margins, strong free cash flow, and potential share repurchases position AMD to offset dilution and capitalize on hyperscaler partnerships. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Olemedia/E+ via Getty Images Advanced Micro Devices, Inc. ( AMD ) has gained 62% since my last report and now exceeds my bullish price target of $304.20.…

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