I spent $71,000 on this stock today‼️

Busy times. Busy times. Huge moves all over this market. Boy, do we have some things to speak about here today. Honest stock up about 40%. What an insane move. ELF climbed onto the shelf uh even a little bit higher here today, ladies and gentlemen. Up about 7% or so. We're going to talk about ELF in this video. We're going to talk about some other movers in regards to this. Celsius, we're definitely going to get to in this video here today. We'll talk in depth about Celsius. Uh what I'm up to there, my opinions, perspectives there. We'll talk about what stock I put $71,000 into here today. So, I've got a lot of that sort of stuff to speak about in this one here today. Then, I want to react to a few videos here. This one from two hours ago, debating the road for the S&P 500 to 8,000. I want to listen to what the Wall Streeters have to say and then share my opinions and perspectives there. AMD, we're going to listen to Stacy Rascon, uh, a gentleman that in the past has come across as a big AMD hater. uh I want to hear his opinion on these uh latest AMD numbers and his opinion on AMD in general. Right. Then I want to go ahead and react to this one. I think some very important things were said here for anybody that owns AMD stock. Um yeah, some very important things were said. So, we're going to go ahead and react to that as well. I appreciate you for joining me as always. Thanks so much for being here. One thing before we get rolling here, I just need you to smash that like button, hit that little thumbs up icon, make it glow. Even if you're somebody that doesn't usually do that, can you please do it for me? Even if you're watching on the TV right now, please do it for me, man. That's all I need from you. Make sure you're subscribed to here to the channel as well. For those of you looking to join my private group, that will be the pinned comment down there today. That's access to all my course curriculums, private Discord chat, thousandx.com, the whole deal, yo. All righty. So, honest listen, if you watch the main channel last night, what did I tell you guys? If you follow me on X, always linked in the description area down there. What did I tell you guys? At that time, the stock was up like 5% after hours. I said, based on these numbers that they just posted, this stock is gonna go insane, right? I'm like, this is gonna this move you're seeing after hours 5%. I'm like, this is small potatoes. This thing's got about to go beast. And oh, did it go beast? Uh, I mean, what a day, right? Now do keep in mind in regards to honest there's so many fundamental good things going on with the company that you know you look at the stock and it's been a beautiful move but just understand it the the question for me now is based on like everything's better than I had even anticipated as a bull. Now the big question is can the stock reach $10 by the end of this year right is a super small cap company. Uh $10 would probably put the market cap on this company closer to a billion dollars. Uh roughly a billion dollar market cap, which based on where I see net the net income going for Honest, about a billion dollar market cap is pretty fair. And then also when I look at the balance sheet, talking about $100 million plus of cash on the balance sheet, no debt with a company that's on the trajectory to likely earn $50 million plus a year in net income. In my personal opinion, that's where this company's headed over the next year or two. I think it's pretty fair and their core business, their organic business is growing very nicely, right? So, I think there's a lot to be positive about on in regards to honest here and I think the company's on the way to a billion dollar market cap, right? And then from there, it's going to be a story of can we get that market cap to a few billion dollars and um so just really really happy in regards to honest. Honest is now in a great position also to be a buyout candidate. So do keep that in mind because think about if you're a big company and you're looking at somebody like an honest you're thinking okay we could probably strip out some costs they got a phenomenal balance sheet they're not debt laden so it's not like you're going to acquire a company where you have to restructure the debt and all those things you don't even have to worry about that it's loaded with cash right profitable great margins on their products so I think even a lot of big companies now will start looking at honest over the next year or two and saying man that's kind of a cheap company we should just do that as a little tuckin acquisition But we'll see what happens there. Uh my hope is they don't sell the company. And if they do sell the company, I want $20 plus a share. So we're not even close to where I would uh you know like a price. So just something to kind of keep in mind there. Elf on a Shelf making a huge move here today. Again, right now the stock's deep into the 90s. So, the thing you got to understand about ELF is this stock, in my opinion, as I've said many times, I think this stock exits this year somewhere between $100 worst case scenario, $140 best case scenario, right? And obviously, this company has a amazing long-term opportunity. So, when you look at a stock like ELF, the big thing you got to understand is don't get too caught up into just like, oh, you know, where's the stock going this year? Like, keep in mind E.L.F. has a beautiful business for the next 5, 10 years, right? And it's a easy company to hold. A cosmetics company that continues to acquire brands, get bigger, grow those brands, become more successful. The road acquisition, as I thought it was going to be, was genius. And you're really starting to see that in the numbers, right? And so a company like L, you buy that stock and you hold that stock for the long term, right? You don't see me cashing out my shares here today, right? Like that stock could have been up that stock could have been up 50% today and you still wouldn't see me cashing my ELF shares. I have absolutely no interest. That's one of those stocks you buy and you hold and you buy some more and you hold for the long term in regards to a company like Delph. And there's there's not a lot of those stocks out there that you really feel comfortable holding for a very long time. ELF is one of those companies. AMD with a nice uh upward move here today. That one's continued to see momentum. You know, there was a little sell-off after the earnings came out because the guide uh wasn't that super exciting guide, right? 12 and a half was expected. They came in at 13. It was kind of like, ah. But then the then the truth came out. So the truth came out in the conference call and this is why the stock didn't sell off harder and that's why it started to rebound now. Okay. Do you know what happened on the conference call? Lisa Sue was pressed. The management team was pressed on the conference call about the data center business and only growing, you know, 100% or so. And she then goes and says, you know, like well above or something like that, right? well above those numbers. And so they kind of pressed her. They put her in a corner a little bit and she basically said, you know, expect things to be much much stronger than maybe even the numbers were giving. Okay? And that's what she led on there. And so Lisa Sue does not just hype to hype. Like if she says it, they're going to do even better than what she says. And so that was one of those moments where it's like oh like if you can read through the the tea tree leaves as we say you know that's a that you know like they just sandbag guidance you know they're going to come in and smash that and so just something to kind of keep in mind there and uh expect much more positive numbers for AMD over these next few quarters and so yeah like I wouldn't be surprised if AMD starts seeing more and more momentum and that stock next thing you know 550 again 580 600 so just do keep that in mind right I mean yeah it's one of the most exciting stocks in the market you know this just like bottom line like you look at the numbers A++ grade is phenomenal right cheese cake factory continues to see momentum that stock now up to $107.58 continues to be value wasn't is it as good as value as it was when I was 30 when I was started buying the stock no it's still you know a great company for the long term, right? Winning Resorts, I still got to listen to that conference call. It's one I have not gotten to listen to yet, but their earnings were good as far as that goes. Right. Celsius, we're going to speak about Celsius in just a moment here. And then other than that, not too much that really catches my attention. Keeping an eye on Robin Hood a little bit. Netflix still has me very intrigued. American Express still has me very intrigued. Um, but yeah, Robin Hood's one I'm keeping an eye on, but I really want to like a stock like Hood, the the time I'd really want to buy that is when it's when the market's in a bare market. And so, right now, can we say we're in a bare market? No, we can't say we're in a bare market. I mean, the the NASDAQ right now isn't how much is the NASDAQ even down? The NASDAQ's not even down much at all, just to be quite frank. NASDAQ's down maybe 3% from all-time highs or something like that. You know, that's nothing. So, I wanna like a stock like Robin Hood, I want to buy that stock when the NASDAQ's down 15, 20, 25, 30%. Call me in, coach. When that happens, I'll be very, very intrigued in in regards to Robin Hood. So, yeah. Uh SpaceX continues to flounder. That stock in my opinion is going dramatically lower still over the next several months as those lockups come. So just do keep that in mind. And outside of that, big tech's kind of doing its thing. So, okay. So, let's go ahead and talk about Celsius cuz that's a big subject here today with a dramatic drop 18%. Right. Well, what stock did I spend $71,000 on here today? Celsius Holdings is a stock I spent $71,000 on here today. I bought in one of my private portfolios. I bought 3,000 shares. This is a big buy for me. Big buy. $71,000 in a day. That does not usually happen. Okay. I wish I had $71,000 to buy of a stock every day. But this was a from the cash pile I've been stacking and I was like, "All right, we're going in uh with a big big buy here." And so 2367 is what I got those shares at. Keep in mind whenever I come in with a big buy like that, I'm of the understanding I might not be buying the low. Who knows? Maybe Celsius bottoms at 19. Maybe it bottoms at 21. Maybe it bottomed today at 23. Maybe it bottoms at 22. You know, I Who knows? All I know is I believe I am going to look back at these 3,000 shares I acquired today at $23.60. And I believe I'll look back 12, 24, 36 months from now, 48 months from now and be like, "Thank you for doing that big boy buy cuz my gosh, was that a steel deal, right?" And so do keep in mind I'm not done buying Celsius either. I'm not done buying this one. Okay, so in regards to Celsius here, right, their income statement was a B minus grade. I'd give him overall, which based on the price action, you would have thought this was much worse. By the way, this also speaks to remember I told you guys I was a little worried about Celsius earnings. Why? Because of how weak the stock was going into earnings. I was like, man, does somebody know something? Whereas ELF I felt really good about as I said and the reason I felt really good about ELF is you look watch the price action going into those ELF earnings and it was just up up and and people talk like like and like like people know some stuff okay and so looking at Celsius that stock was so weak going into earnings it made you think like gosh they've got to have some bad results coming right and so they missed the analyst expectations pretty much across the board right and so the stock went in week to earnings. It exited earnings week, right? And uh but at the end of the day, the numbers actually were pretty respectable. So revenue was up 11%. Nothing crazy there. Now, cost of revenue was an issue. That was up 18% for the company. So gross profit was only up 3%. SGNA, they kept that flat year-over-year. Did this distribute uh distributor termination fee, which is a one-offish category there, that was $80 million. Keep in mind, that's not even like a cash expense for them because they get that reimbured uh from Pepsi. So, do keep that in mind. So, it's not even like it's a uh a negative. They have to put on their income statement because of GAP standards, but honestly, it's pretty irrelevant. So, if it wasn't for that, the income from operation should have been about $155 million. Okay. So, which is quite better than this time last year considering their cost of revenue came in so rough. So, you know, if you can still have your income from operations go up on a year-over-year basis, right? once again taking out that uh termination fee that once again is not even relevant for them but they have to put it on there man gross pro you know I think that's pretty darn impressive in regards to that right and so net income dilute EPS were down big but once again it's because that one office it's not even their issue to really deal with that's Pepsi's covering that so I walked away from the earnings feeling good about the long-term trajectory of the company and I listen conference call, I felt good about the long-term trajectory of the company, right? And so, the right way in my opinion to look at a stock like Celsius because numbers bounce around. It's like, oh, this brand's numbers aren't that good and margins getting hit and price cuts are this or that, right? Competition, all these things, right? Is I owned Monster on and off from like, you know, kind of the 2010 era into like 2020 roughly, right? And I own the stock on and off. It was a great company. it back then it was named still Hansen's Natural Beverage and then they eventually changed their name to Monster Beverage. But over that time period and this doesn't even show how dramatic some of the drops were because this is charts just kind of looking on a month basis. So you don't even notice like how dramatic some of these drops really were right from the bot from the tops to the bottoms. But over that time period, like there was plenty of time periods with Monster that people were worried about market share, people were worried about competition, people were worried about lawsuits, uh people were worried about margins, right? People were worried about long-term TAM competitors coming in the marketplace. And there's a lot of things always to worry about, but at the end of the day, Monster was just a great stock to hold, right? Great stock to hold. And it was a huge money maker over the years. And so I look at a stock like Celsius and what I see is a company with multiple brands that has multiple growth levers to grow these brands, get more shelf space, go up on price a little bit as years tick on, right, and expand the business international massive. And so when I look at the company, I see exactly what I want to see, a company that is on the long-term trajectory to become a drink giant. And as of today, the market cap on Celsius is maybe $6 billion roughly. And I see a company that's going to be a drink giant. Drink giants, when we talk about market cap, we're talking about companies with tens of billions of dollars in market cap or hundred billion dollars plus. And so there's a long trajectory in my opinion for growth for Celsius. And um I also look at a company that is supposed to be in rough times right now, right? This is supposed to be like their tough times. Like oh this is bad. This is bad. Look at cost of revenue. Blah blah blah. And I'm like the company's still incredibly profitable. Like incredibly profitable during tough times. I like that. And so I see a company with a lot of growth levers. I see a company that the brands are in the good place for the long term and that's why I came in put some chips on the table today, right? You know, when you see when you think you got the best hand at the poker table, you got to bet big. And I think I got a pretty good hand here, right? And so maybe I'm wrong. Maybe somebody's got a royal flush or something to beat me, but uh I think I think I got a pretty good hand here. So I'm going to put some chips out there. Okay. All righty. Let's react to some Wall Streeters. Uh, Jard Dennis at 8250 says that could be conservative. You've called it one of the healthiest, if not the healthiest tapes that you've seen in an awfully long time. Um, Tom Lee says you could hit 8,000 this month. >> And earnings are the story. They're the story in all caps >> because the growth has been pretty remarkable. About 50% in the second quarter. If you strip out Google and Amazon and their investment gains, it's at 31%. July 1st, it was 24.4. So estimates continue and growth continues to go up and that's driving the market. >> So I have my contras. Do you guys have contras like people that you know are always wrong but you listen to them anyway cuz they make you feel better. You have like one or two. I know you do sneaky but like everyone. So I have my Contras and they have it's really helpful actually. They have podcasts so it's super convenient. I don't have to track down their comments on social media. I can just listen to a steady stream of it. And the people in 2024 that were lamenting the fact that it was a hyperconentrated bull market just max 7 it's all hyperscaler right those people and they didn't like the fact that the market was being driven at that phase of the rally by PE multiple expansion well they changed their tune cuz now it's not we actually have multiples compressing what we have is massive earnings expansion all over the market and so what they're saying instead now is earnings bubble it's you can't win with these people. But I again I find that to be a helpful exercise. Let me listen to this guy. Everything he says is backwards. That's what they're saying. Now if that's the problem that there's too much earning. >> I think I know who he's talking about. That's what's really funny. >> Yeah. I I'll take it. And I want to be really specific here about what's going on. Let's take out Google and Amazon earnings because we know they wrote up their stakes in Anthropic and other startups. And that's not obviously repeatable or something that we want to get too excited about. Even if you pull those out, the S&P 500's earnings growth is still 28.8%. Um, for next quarter, the analysts are already increasing estimates. Normally, analysts reduce estimates during the quarter. They lower the hurdle, make it easier for their coverage universe to jump over. They're not doing that now. For Q2 and for Q3, analysts spent the quarter revising estimates upward. They have to. They're listening to management. In the last 80 quarters, that's 20 years worth of data. The average change in estimates for the first month of the quarter has been negative 1.9%. That's the average right now. It's up 2.1% in this quarter for next quarter's numbers. This is these are unheard of times. So, I understand the uh the impulse. Oh, well, I can't be wrong. So, therefore, it's an earnings bubble. I understand. I just caution people who are listening to that um rhetoric from actually acting on it because it's been wrong all year so far. I think it'll stay wrong throughout the balance of this year. We have an earnings driven market. All 11 sectors are reporting year-over-year sales growth, revenue growth. We're not talking about gains tricking people, stockbased compensation, buybacks. We're talking about sales growth of plus 14% in the quarter. You can't fake revenue. You could fake earnings, but that's not what's happening. >> You and Tom Lee are on the same uh wavelength as he says, Malcolm, uh there are some investors criticizing S&P 500 earnings quality. Our analysis shows there are sizable contributions coming from investment gains, but keep in mind to Josh's point, organic EPS growth is still 21% in the second quarter of 26 so far. In 2027, EPS estimates are still rising. We're dip buyers. We see the S&P reaching 79 to 8,000 this month. Make sense to you? >> I don't disagree with the premise. I think that what the market is showing right now is that as long as the four main hyperscalers who are throwing trillions of dollars at the problem, trying to create as much compute as possible, continue to reaffirm their spending plans and also increase them as we just got basically from all of them through the last earnings period. That is reason to feel bullish. It's obviously trickled down. >> By the way, let me say this, okay? What JB just broke down there is very important. I think those individuals are important to the market. Those those those always have a negative spin on everything right? I don't ever want the market to not have those people. I like having those people around. They make you feel more comfortable in the market, right? Uh at least me personally. Like some people might get scared out of the market, but me personally, I feel more comfortable. Like I feel uncomfortable if it seems like everybody's bullish. And if everybody's bullish, then people tend to start to gravitate toward really bad stocks and they get involved in really bad companies and get involved in a lot of messy situations and options and margin and leverage this and leverage that. And so I think they're I think they're a necessary good force actually in my personal opinion. Um, so I don't ever want to see a day when we don't have those individuals. >> Is going to go through the second and third order effects. All the different companies, Caterpillar, for example, is having its best year probably ever because of Microsoft, Amazon, Google, and Meta spending as much as they are on the buildout. At the risk of sounding like one of Josh's beloved contras though, I will say I think that that probably is through the end of this year. >> But but isn't the point though? Isn't the point Isn't the point that what was perhaps focused all around what you're saying has now broadened like the earnings growth was a tech story and felt like it was a tech only story but to John Waldron's point president of Goldman who we ran the soundbite of yesterday um double digit earnings growth is propelling markets and it's broadening out it's no longer just a a tech story so I think that's sort of the point that I mean is all state and is all state and MetLife selling GPUs. >> All State and Metife. I I so I really believe the story of insurance companies as an example of companies that are using AI, turning it on their businesses, weaponizing it against the problems that they once had and using it to get more efficient. So, their operating margins are getting far better. The point though is that the market only cares about one particular theme right now and it's trickling through all the other different sectors that touch the AI rev. I mean, it is happens to be like one of the most powerful themes in the history of >> I think I'm not saying that the United States economy bull market is noted. I'm not saying that it's not warranted. So, I want to make sure that I'm clear about this. I think that we could get to 8,000 very soon because of the belief in what we're looking at right now. The question is when does it stop? And I think that's the part that the bullish folks like a Tom Lee for example are not necessarily looking that far out and saying. and they're saying this particular quarter we get to 7,900 8,000 and we'll see where we go from there. I agree with that, but I think beyond that is where we have to have the conversation of what causes that to slow down if the spending slows down cuz I think there is a pull forward that has happened. There's a lot of companies like I just mentioned the four major hyperscalers that have preunded a lot of their purchases for next year. This year they've pulled it all into this year because they'd rather pay today's elevated price versus next year's elevated price. They'll take the known known versus the unknown unknown of next year's prices. And I think we have to consider how much of the additional spending at like a caterpillar, I'll use them again, or a Corning for example, those kinds of companies that are third order effects. How much of that spending that has reached them already is going to slow down because the company's accelerated this year and they won't do it again next year. >> You've highlighted the earnings story right now and I think that's a good tailwind. Two weeks ago, we put out I put out a weekly letter to to my clients and I highlighted three things. back away from the forest. You got to see the trees here. And the three things that are important are worse is misunderstood. This was ahead of the Fed meeting. And I I think that right the expectations for hawkishness were really off sides right now. Even still, there's expectations of better than 50 50% probability that the Fed hikes in September and we do have a Jackson Hole and we'll we'll start to see a little bit more there. What's off sides about that when the FT is reporting today according to their sources that he's prepared to hike in September if inflation remains hot. So seems to me like the market's exactly on size. >> It's not it's not hot yet. So we're going to get more data. >> Well, it is hotter than than um it's hotter than 2%. >> But if you look back it's hotter than Target. You'd admit that, right? >> Yeah. We looked at Federer Powell and his we call coming coming to Harvard moment when he said specifically that oil price shocks are not going to be controlled by monetary policy and that was very bullish for the market. So I think they're going to try to look through the oil rise that we have. >> Well, they obviously are but there is inflation that is in other parts of the economy beyond oil >> and there's also disinflation within within certain certain components within that. So I think the the inflation the non-farm payroll coming up the inflation data which what I believe will be next week or a week and a half away that's going to be critical and I don't see that being a catalyst for hike. Now they are putting out and then when I say misunderstood they are putting out these anecdotes that come off more hawkish in the near term and I think that's going to become incrementally walked back. I think you're going to see that become a a tailwind into the midterms. That being factor number one. Factor number two is President Trump whatever is going to he's going to have to do they're going to have to engineer some sort of passage through the straight of muse which is which is starting to show the market's going to find that favorable. Trump does not want voters at the ballot box in the midterms with war with the war taking place in the middle of the war and and oil above $90 that so I think that's going to be a tailwind as well. There's no better way to goose the economy when you look at those two. And then the factor number three is what we've learned from earnings as has emphasized it as well is the market's compute constraint. The AI buildout is very compute constraint. Alphabet even said on their earnings call that that they're going to purchase more compute while they build out their compute. So and you look at names like like Meta, they're leaning into I think being a maybe a 2027 story, but they're going to sell compute. So I I think the AI story two weeks ago when when the SMH was was what 25% from its highs, we were looking at okay, some of this is overdone and these are the three pillars to look be bullish at going into the midterms and now we have this massive move off the lows in a very short period of time. Those three pillars have not changed. They are going to be the catalyst to take a safe out it frustrates me how many people don't understand meta. I'm like, "Oh my gosh." Like, I hear these people talking, they talk on Meta like crazy. And as somebody has been a shareholder of Meta for so many years, like, you know, I'm like, "Oh, shoot. They don't understand the company." So, listen, it's very serious in regards to Meta. Meta has a big earnings problem. It's going to get a lot worse. And there's people like, "Well, they might start selling compute, so they might have new businesses. Sweet. That's cool. The bases are going to be small. they're going to be literally not even meaningful to revenue or EPS in anyway. And so for years and so let's say Meta is successful in selling compute or these other new businesses. Okay, awesome. Those businesses aren't even going to be material to Meta's numbers in any way until you push close to 29, 2030, 2031. So, in the meantime, you got a company that's earnings per share is declining and it's likely going to get worse before it gets better, right? Because of the depreciation they're going to have to start taking. And they're also going to have some brutal comps coming up next year as well from a revenue perspective. I'm like, "Oh my gosh." So, you know, I'm just like, "Oh, shoot, man." You know, people should dig in a little bit more. Okay, let's talk some AMD. It's gone outperform rating a $600 price target on the stock. >> And by the way, I'm bullish on Meta obviously over the long term. If I wasn't bullish on it, I would not hold any shares. But people are just way too excited about like, oh, Meta stock's going to go to a thousand this year, next year, I'm like, you know, once I saw that capex number at the beginning of this year, I was like, that's out the window. No, we could have been, but the capex numbers and how crazy Zuckerberg's going with the spending, that took a $1,000 right out the window. That was like, nope, that ain't happening anytime soon. Eventually, Meta will be a $1,000 stock and probably a $2,000 stock, but ain't anytime soon. I can tell you that much because the spend is out of control and that's going to continue to hit EPS severely. >> Great to have you with us. What's your take on the quarter and why the stock is down by about four and a half%. >> Yeah, you know, I I think it looks fine. Like, there's nothing wrong with it. I I do think post Intel Intel had some very strong results. Maybe people were looking for a little bit more. You know, um revenue guide is is decently above the EPS that I'm getting is above. Gross margins in line. Maybe that's part of it. But overall, I think this looks looks great. Um they also said that data center accelerates into the back of and I still think as strong as the Q3 outlook is, I still think the big AI ramp with Helios really is a Q4 story. So I still think there's that to look forward to. So, I think there's just a little bit of heightened expectations post intel, but overall, as far as I can tell from at least from the first glance, it looks fine to me. >> You think we'll get some um good indication on on Helios and how much they expect to shift? >> I don't know if they'll give us numbers or not, but at least qualitatively, yeah, I'd expect them to sound pretty good. I mean, you know, they had an AI uh they had advancing AI uh like almost like an analyst event a week or two ago. Um we got a little color there. I mean, they sounded very positive. It should should be I think it should be very positive. should be fine. >> Can the Helio stack actually chip away at at Nvidia and its position in the market? >> Well, be be careful about chip away like are they taking share? Are they growing? Sure. I mean, they're going from not very much to hopefully a lot. At the same time, it's not like Nvidia and frankly like everybody is isn't growing. I I think I've said this here a number of times, but I still feel like that the right question is not so much who's winning or losing. Is the opportunity still big or is it not? I I think if it's big, everybody should be doing great. And frankly, that's what we've been seeing right now. But I do think there is an opportunity for AMD here to go from what's been, you know, good results, but still, you know, not where they could be to having a real inflection as as the MI450 and the Helios rack starts starts to ramp into next year. >> So, as we see Intel and AMD compete on the on the server CPU side. So, what Stacy said there, listen, if you're an AMD shareholder, you want to buy AMD, listen, I actually agree with his sentiment there about these are really good results by AMD, but they're not quite where they're supposed to be, right? We expect this company to really just be smashing it. Nvidia, right? Like Nvidia was a few years ago where they would just come in, wreck their previous numbers, and just come in with a crazy guy. We're not getting that from AMD. We're getting very nice beats, but it's not like, oh my gosh, like, did you see what they just did? That was Nvidia like two, three years ago. Nvidia was coming up with such crazy numbers. People like, wait, what? Huh? AMD is just coming in beating the numbers, raising the guide, but it's not like, whoa. That's why I was talking about if they came in with a 14 or 15 billion plus guide, that was going to be the shock and awe. They be like, "Whoa, did you see AMD just got it for 14.5 billion, 15 billion, and the stock, you know, would the stock would be six 610 right now if that was a situation, right?" But it's just kind of like, okay, like 13 billion, 12.5 was expected. Cool. And so, we keep waiting for that shock and on. We just haven't gotten it, man. And so, at some point, you start doubting, are we going to get the shock at all? Are we going to get that right like next quarter maybe? like come on man. >> So you're saying it doesn't really matter like there's enough demand at this point where all the boats will will rise. >> Well so those comments I just made were on on the GPU side. On the CPU side demand is is so strong everybody's just shipping everything that they can possibly make. And you take Intel for example. Intel by their own admission their products right now are not are not as competitive as they want them to be. Um it doesn't matter like customers are buying them anyways. A couple quarters ago, they they actually had oh 200 basis points of margin upside because they sold previously written off products, stuff that they didn't think that anybody would want to buy, so they wrote them off. Customers said, "We don't care, we'll take them." >> That's that's how strong demand has been. And I would say AMD actually has products that people actually want to buy. So I'd expect that to be pretty good for them. >> What's your first question on the conference call? >> Uh I I think the big question is, you know, they said data center is going to accelerate into the back half. So, I mean, trying to get some color around what that acceleration looks like, the the timing, the real timing of the Helios ramp. You know, I think they've kind of said maybe end of Q3, but what does that look like into Q4 and next year? Um, you know, how much revenue do they expect from Enthropic and what could that add to the numbers next year? And for I'd also like to know about client, frankly. I mean, we we've been we've had client a little bit below like where the rest of the street is. I think I've been very nervous. Intel kind of talked about um the their PC revenues kind of taking a dive into the end there and I would like to know the shape of that and how AMD feels about that. Although I feel like data center strong enough where people probably don't care as much but I would like to know >> uh before we get to the big boss Lisa Sue here. Okay. Now I I thought that was a very interesting clip from Stacy Razin there because did you notice what I noticed? He actually sounded pretty respectful toward AMD. We've come a long way, baby. We've come a long way. Like, that's a big turn versus where he was a year ago or so when he made those comments about, I don't even know if we need AMD, right? That was really max level disrespectful. And um yeah, that was that's been quite a turn. Right now, they got a $600 price target on AMD. How about that? I think people don't understand that your stock is up so dramatically that it certainly makes sense that there could be a little bit of profit taking. It has far exceeded Nvidia's stock price this year. So, I think it's important that we start out by saying there was really no disappointment here that I could see. >> Well, Jim, great to be here with you this morning. Great to see uh you know, David and Carl as well. And yeah, it was a very strong quarter for us. Um, you know, we grew revenue uh over 50% uh year on year and we're seeing just tremendous momentum especially in our data center business where uh you know folks need a lot more AI compute and we have some great products coming. So very excited about the trajectory of our business and the momentum that we're seeing going into the second half of the year. >> Let's go over something that was said in the call. I think that the analysts in the call for the most part were a little too negative and at one point you say look I think you're hearing from us is that the data center AI number is probably too low and maybe back to and then mentioned an analyst question without going to exact numbers I think the notion of over 100% should consider consider be well over 100%. So in other words it's entirely possible the analyst may not have heard exactly how strong your business is going to be. Well, Jim, you know, actually what I would say is we are in an extraordinary time for AI compute right now. You know, we just updated our overall market numbers. You know, we see the market for overall uh computing and adaptive high performance and adaptive computing going up to over $2 trillion um as we go through 2030. And with all of that information, we wanted to reframe where our business is. And the fact is um our data center business is accelerating. We're extremely excited about our foundational model um large strategic partners like OpenAI and Meta and we just added Anthropic uh to the mix there and this is a case where you know we do see our data center business growing well over 100% as we go into 2027 and >> well over 100%. are just very large numbers when you think about, you know, the base that we're on top of. >> Also, I want to talk about CPUs. You guys have, as you taught me, you're just the CPU company. And it does seem that some of these analysts, I'm I'm just harping the analyst cuz the stock's down today. Some of these analysts are somehow thinking that your CPU business cuz this lower margin is going to hurt you. I don't see how that's possible. I think it's just 100% additive. Am I too bullish about AMD? Well, I think Jim, you're right on a couple of aspects. You know, what we have seen in the AI market over the last, I would say, six or seven months is really an inflection in demand and especially in the CPU market. So what we're finding is as AI is becoming more useful for people as we're using uh more agents as enterprises are using you know more of their workloads from let's call it what was experimentation into now production workloads people need a lot more CPU compute as well as um you know GPU compute and we are the leaders in CPU compute uh we're very very you know proud of our technology stack we just announced our next generation Venice has launched and you know as you know our Italian cities very well. Uh Venice is leadership across every aspect of compute. Whether you're talking about uh the >> I want you to do something really important right now. I want you to look at the stock price $475. Understand just over a decade ago when Lisa Sue, shortly after Lisa Sue took over the company, the stock was $2 a share. It was a twobuck chuck. What a story >> performance or the most overall uh performance per core those >> and now we have you know a lot of people that have $1,000 and $2,000 price targets on the stock. My bull case has a stock going to $2,000 over the next few years. 2,000. And to think it was a $2 stock that was basically headed toward bankruptcy a little over a decade ago. That's crazy. >> Is where you know we just lead. So, you know, we're excited about where the market is because the market needs a lot more compute and we're even more excited about just the overall positioning in the market because our product portfolio is uh so broad and strong. >> So, Lisa, as IT budgets get assembled for next year, how should people think about the enterprise state of mind? I mean, is it about sort of cost discipline and uh trying not to token max and and being wary of our potential ROI or is it about just get, you know, breaking some stuff and hitting the pedal to the metal? >> Well, Carl, it's a great question. Um, I think it's a little bit of both and, you know, the way I see it, you know, spending time with a lot of CEOs and CIOS right now, um, the the desire is to truly use AI as a tool. Um AI is a tool to help all of our businesses become more productive and there is a good amount of experimentation where you're trying to figure out which is the right model uh that will get the best outcome from a business standpoint but we are also in the place where you know the AI costs are getting so large that everybody has to manage just like you manage your employee costs you have to manage your AI costs and I'm a big believer in there will be all kinds of models that are important as you go forward and that includes u you know using the largest foundational models as well as um you know using open models and you know that's called smaller and mediumsiz models as you think about all the different use cases. So I think the state of mind in enterprise today is how do I take advantage of AI while ensuring that I'm managing it for what will be significant growth going forward. >> We have higher to go ladies and gentlemen. Hope you enjoyed today's video as always. 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