AMD Gets Big Boost from Saudi and Amazon Investments

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[00:00:04] Doug McIntyre: So Lee, AMD, I mean, if you said describe ’em, they’re the number two AI chip company. I guess that’s the way people refer to ’em. Yeah. After Nvidia, little piece of good news probably. And that is when Donald Trump went over to the Middle East. He basically sold them a bunch of chips themselves, but the only people who came name came up when he did That was Nvidia.

[00:00:29] Doug McIntyre: There was no, he wasn’t, he wasn’t Hawking AMD chips. He was talking about Nvidia chips. I think that’s because it of the brand. If you’re gonna go sell chips to somebody and you’re the president of the United States, you use the, the, the biggest brand. What is going on at AMD other than them sitting in second place.

[00:00:48] Lee Jackson: It, it may be. And I thought we had this discussion around the end of last year where, where the stock had been hit and it was down, and like, oh, they’re not gonna be able to compete. Well. That, that’s never the case with the bright people that run AMD. The thing that I thought was interesting recently.

[00:01:03] Lee Jackson: Is our, our friends at Amazon bought $85 million worth of AMD stock. Now, kind of wonder why would they do that? Just, for like some sort of sovereign holding fund, Bezos International Fund. But I think that was interesting. But when that happened, AMD announced a $6 billion buyback, which which is of share buyback, which is in addition to the 4 billion that was already on the books and.

[00:01:32] Lee Jackson: The Saudis who apparently we had, apparently the Crown Prince and Trump are big pals from what I gleaned over.

[00:01:41] Doug McIntyre: Oh yeah. I It’s pals in history.

[00:01:43] Lee Jackson: Yeah, they are. And the Saudis are gonna invest $10 billion, for AI infrastructure. And you who’s gonna be that, proud owner of that 10 billion amd.

[00:01:55] Doug McIntyre: Yep. So if you look at this, it’s fascinating.

[00:01:59] Doug McIntyre: Amazon may be doing this because they don’t wanna be, have to rely on Nvidia. There’s a, I think that’s a huge reason. You, you, you’ve now got these mega tech companies that are the older ones, right? They, for 10, 20 years, NVIDIA’s the newest guy on the block. But people say, well, NVIDIA’s gonna control the future of AI because they’re the guys with the hardware.

[00:02:23] Doug McIntyre: I think that anybody else is trying to either build their own chip. Or hedge their bets through people like AMD.

[00:02:30] Lee Jackson: Yeah, I think you’re right because you just, it is often the second, the second prettiest girl at the prom is probably the best one to have, as a date after the prom. And I think that the, the AMD.

[00:02:48] Lee Jackson: With so much of their operations in the United States is, it’s a good US story, but they just, they had the best weekend. I mean, they, they had a, the best weekend ever.

[00:02:59] Doug McIntyre: Yeah. Well, look, I, it’s like Avis (NASDAQ: CAR), I don’t know if you remember this from years ago. Hertz (NASDAQ: HTZ) has, was number one in market share. Avis was two and Avis made a lot of money.

[00:03:11] Doug McIntyre: Being in second place is not always,

[00:03:14] Lee Jackson: No, it ain’t that bad. It ain’t that bad. And, and especially when you consider, I don’t know, 10, 15 years ago, what was AMD $3, $4? we write about this all the time. We write about stocks under 10 and people are like, oh, I don’t wanna buy those $3 stocks.

[00:03:29] Lee Jackson: So, really? Well, Netflix (NASDAQ: NFLX) was $8, AMD was $3, Amazon was $3. I mean, al almost Apple was $3. almost all the big tech traded in the single digits. And, if you’re patient with good companies like AMD, you can make a lot of money. And I think that there, there’s still a solid trade even at these levels.

[00:03:52] Doug McIntyre: Well, now that you’ve opened up the Middle East to, AI chips, in other words, if you, if you looked at the map of the world and said, who’s gonna buy these chips? Nobody would’ve had the Middle East on that map. No. It’s like, well, no one would’ve said that the, the Crescent of AI server farms and the AI purchasing was somehow gonna be the Middle East.

[00:04:16] Doug McIntyre: If you look at the amount of money that’s being committed to chips and the idea that, that in essence they will have servers. Available in their part of the world. Yep. Now, one of the worries about this is that the Chinese will have access. There’s nothing in the Trump negotiation with the Middle East.

[00:04:37] Doug McIntyre: Said that the Chinese can’t get access to those server farms. So well that, but

[00:04:42] Lee Jackson: That’s one in interesting reason why Trump’s over there making such big pals with these guys. ’cause a, it’s strategically imperative for us to, to have, I mean, we have a basic cutter and, and they’re the biggest money faction that goes to Hamas at some point, but, what’s the old saying?

[00:04:58] Lee Jackson: Keep your friends close, keep your enemies closer.

[00:05:00] Doug McIntyre: Well, anyway, I like AMD. I do too, very often. I like companies that are a strong second, and I think it has a ways to run.

[00:05:11] Lee Jackson: Yeah, I do too. I, I think, and especially since it backed up some recently, keep an eye on it because, who knows how this summer’s gonna go, but I, I think on, as a long-term play, it’s a real smart idea.

[00:05:25] Doug McIntyre: The, the last thing I’ll say about it is, is that I think there’s a chance that Donald Trump will simply say, you can send, sell any AI chips you want to China, you don’t have to go through Singapore, Saudi Arabia, and Yeah. Right. We’re, we’re just, I’m friends with all the heads of China and they’re all my pals, and they would never do anything to harm us.

[00:05:48] Doug McIntyre: I think you could get to the point where. NVIDIA’s most powerful chips and AMDs are being sold directly to the Chinese.

[00:05:56] Lee Jackson: Yep. It’ll happen.

[00:05:57] Doug McIntyre: Yep. But that’s good for, maybe bad for the United States, but it’s very good for AMD and Nvidia.

[00:06:03] Lee Jackson: Absolutely it is. And ultimately we want to continue to dominate tech and we will.

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