Advanced Micro Devices (NASDAQ: AMD) is in the midst of a rapidly swelling AI bubble that is about to burst. However, this bubble is just the first in a series of explosive events that have this stock price on track to rocket higher in upcoming quarters. The primary driver is growth, underpinned by AI and edge computing, and the outlook continues to swell. All else aside, AMD CEO Lisa Su’s total addressable market (TAM) forecasts say it all. Well-known for conservative estimates and periodic improvements, the July 2026 updates nearly doubled the outlook for CPUs, added 40% to the AI accelerator market, and doubled the total, including edge, industrial, and computing.
The robust outlook being priced into the market was affirmed, and leaves the stock at a deep, deep value. Long-term estimates suggest the stock trades at a mere 14x the 2030 earnings estimate, well below the S&P 500 average, setting the stage for at least 50% upside over the coming quarter. The critical detail, however, is that long-term estimates are likely to be low, and more significant gains are likely over time—Advanced Micro Devices is pivoting into an AI-critical infrastructure provider, about to unleash growth.
