TMTB Weekly: AMD SHOP META NFLX Software and a Bonus Analog
Short on time today as we’re headed up to the Bay Area for the weekend, so let’s get straight to it…
AMD: Reports on Tuesday. Like most investors, we are more focused on the 11/11 analyst day instead of the print. The print should be fine, and importantly we think commentary around traditional server CPU demand will be strong, which is what we’ve heard from INTC, MU, and others. This week we got two more good datapoints on the CPU biz: The sequential growth of CLS rev in Q3 is mainly driven by META, which accounts for 60% of incremental dollar growth and likely driven by initial shipments of META’s AI server racks, of which is AMD is a key partner as it supplies CPU for both Minerva (Turin), and its successor Santa Barbara (Venice). Secondly, Hynix this week said that server units are expected to grow high teens in ‘26, which is more proof that the AI-driven traditional server replacement cycle is happening. If you haven’t been keeping track, AI agent growth is driving this as that traffic mimics what humans do and hits CPU-led layers far more than GPU racks.
What would high teens server growth mean for AMD?
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