Jim Cramer on AMD: "Pause That Refreshes"

Jim Cramer believes that Advanced Micro Devices (AMD) is due for a pullback, calling it a "pause that refreshes." He thinks CEO Lisa Su has a big plan for the MI400, a competitor to NVIDIA, and that AMD will get its fair share of the market. Cramer recommends buying AMD stock.

Jim Cramer, the well-known CNBC TV host, recently discussed Advanced Micro Devices (AMD) and its prospects in the AI market. Cramer believes that AMD is due for a temporary pullback, which he described as a "pause that refreshes." He expects this pause to be followed by renewed growth, particularly driven by the company's AI initiatives.

Cramer highlighted AMD's CEO, Lisa Su, who he believes has a significant plan for the MI400, a competitor to NVIDIA's AI GPUs. Su has mentioned that AMD's AI business could deliver tens of billions of dollars in sales annually [2]. Cramer also noted that AMD's stock has gained 41.7% year-to-date, indicating analysts' bullishness about the company's prospects in the AI race [4].

Despite the recent pullback, Cramer recommends buying AMD stock. He believes that the company is well-positioned to capture a meaningful slice of the AI GPU market, which is currently dominated by NVIDIA [2]. Cramer's recommendation is based on the underlying strength in the markets that AMD is present in and the positive signals from China regarding the resumption of exports [3].

Analysts also see potential in AMD's AI strategy. The Melius Research team expects AMD to deliver on its AI strategy and reach upwards of $9 a share in annual earnings over the long term [2]. Raymond James analysts anticipate that AI momentum will further accelerate with the launch of the MI400 accelerators next year [2].

In conclusion, Jim Cramer's analysis of AMD suggests that the company is poised for growth, particularly in the AI market. While there may be short-term challenges, Cramer's recommendation to buy AMD stock is based on the company's long-term potential and the positive signals from its CEO and analysts.

References:
[1] https://finance.yahoo.com/news/arm-holdings-plc-arm-had-014516143.html
[2] https://www.morningstar.com/news/marketwatch/20250806147/amds-stock-is-down-but-these-new-estimates-have-analysts-feeling-upbeat
[3] https://stocktwits.com/news-articles/markets/equity/amd-lisa-su-positive-signals-good-indications-china-export-licenses/chrSP0nRd5S
[4] https://finance.yahoo.com/news/advanced-micro-devices-inc-amd-193315578.html