THE WASHINGTON GENERALS STRATEGY

(AMD), (NVDA), (MSFT)

Only in tech investing can “not being NVIDIA” be considered a character flaw.

Last month, I was at yet another tech conference — you know the type, where VCs sip overpriced lattes and argue loudly about things they only half understand. One particularly confident investor declared, with a smirk, that “betting on AMD is like rooting for the Washington Generals against the Harlem Globetrotters.”

I nearly spit out my coffee. Not because he was wrong about NVIDIA’s (NVDA) dominance, but because he’d accidentally hit on exactly why AMD (AMD) might be one of the smartest contrarian plays in this entire AI-fueled market mania.

Let me tell you something about underdogs: the bar is so low, they get applause just for showing up. When they actually perform? The market loses its collective mind. 

AMD is currently trading around $110, well off its $230 highs — complete with a markdown tag that screams “slightly bruised, still delicious.”

Wall Street’s neat little AI narrative goes like this: NVIDIA is the overlord, AMD is the afterthought, and any smart investor should cough up whatever premium NVIDIA demands. It’s a lovely story. Also incomplete.

Here’s the inconvenient truth: AMD just posted 75% revenue growth. Their data center business grew 57% year-over-year. Gross margins? Expanding. While the crowd worshipped at the altar of Jensen Huang’s leather jacket, AMD was out here quietly building a serious AI business.

And valuation-wise? We’re talking a forward P/E around 17x, compared to NVIDIA’s 21x — not a steal, but certainly not the nosebleed territory most of big tech is floating in. You’re getting real growth at a price that doesn’t require a confession booth after you hit the “buy” button.

No, AMD isn’t going to knock NVIDIA off its perch. That’s like saying your favorite local diner is going to take down McDonald’s. But in a trillion-dollar market, you don’t need to be the king to get rich — you just need to be a really good baron.

The beauty of AMD’s setup is this: they don’t have to win. They just need to keep not losing. And based on recent moves — Microsoft (MSFT) partnerships for Copilot+ PCs, expanding cloud relationships, a gaming division that’s actually growing — “not losing” looks very achievable.

Now let’s talk options, because this is where things get delightfully tactical. With AMD’s volatility spiking like it’s had one too many Red Bulls, the premium for selling puts is unusually attractive. Selling August $100 strike puts? That can net you about 4% in under three months — roughly 17% annualized, if you can keep rolling.

Here’s the kicker: either you pocket the premium, or you get assigned a stock you already like at a better price. That’s not risk; that’s a strategy. This is a classic maneuver: get paid to wait, or get paid to own.

AMD isn’t some dusty dividend play tossing retirees pocket change. It’s a growth story hiding inside a value wrapper. That rare combo where the stock’s not only undervalued but also growing like a weed in a biotech rally.

Yes, NVIDIA has better tech, deeper pockets, and Wall Street’s collective crush. They’re minting cash and priced like they’re going to solve climate change and write Shakespeare sonnets at the same time.

AMD is the barroom brawler in a tuxedo world. They’re rough around the edges, but increasingly hard to ignore. Their R&D spend is rising. Their balance sheet is solid. And they’re capturing meaningful slices of both data centers and gaming — not exactly rounding errors.

The real question isn’t “Can AMD beat NVIDIA?” It’s “Is AMD good enough to justify its current price?” Spoiler: yes. A 75% grower with diversified segments, real partnerships, and geopolitical tail coverage — that’s not a charity case, that’s a compelling investment.

Speaking of geopolitics, both AMD and NVIDIA are dancing on the same Taiwan Semiconductor supply chain tripwire. But AMD’s revenue base — spread across gaming, data centers, and embedded systems — offers better downside insulation if global tensions heat up.

And the options market agrees. This is a volatility story with upside. Sell puts for income. Buy shares for growth. Either way, you’re betting that the market eventually remembers profitable growth still matters.

My take? AMD is that rare beast: a company Wall Street’s overlooked just long enough for you to profit. It won’t scratch your NVIDIA FOMO itch, but it might just pay for your lake house.