AMD's recent rally and CPU demand hype are overblown; stock is technically overbought despite being a good company.

AMD close 3.6 on the downside today. That's not bad, but it's uh it's definitely started coming down a little bit.

For example, we have seen this explosion in AMD. In fairness, we did call for a breakout around the mid4s over here. It happened, but it has gone cookie dookie. We went all the way up to 645 on AMD.

It is overbought on the daily. It is overbought on the weekly.

Uh I just think some of this got a little ahead of itself because I don't think we need that many CPUs. AMD is up 183% which is also almost a 3x this year which is I mean very impressive. It's phenomenal.

Uh but some of this might be a little bit overblown on the latest uh CPU enthusiasm regarding Metamuse.

Vicram who posts on Substack I think he had a good piece over here of Vicram uh Seeker he ended up writing that an AMD Venice chip itself which is a 256 core CPU could potentially support about 896 agents uh agentic virtual machines.

anthropic and open AI continuing to survive because they go public and they keep getting funding and they keep sucking money and and Elon Musk keeps sucking money and they keep throwing it in Nvidia and AMD for Frontier chips.

That is a good trade because in fairness, you know, they have their missions, but it is a little loony how much money they are spending on Frontier chips and Nvidia and AMD Jensen and Lisa Sue are salivating over the fact that they don't even have to manufacture this crap.

They just design it and then Elon comes in hookline and sinker and goes you guys are the best vivores all the money and the world and give it to Jensen.

So, these mini PCs, which is like a, you know, it's driven by an AMD R seven, 16 GB of RAM, 512 GB of SSD. Okay, you buy this for $417.

Probably not as good as as the AMD ones, and I think AMD is a great company. Uh, that said, it might be a little overblown.