What did Cramer actually point to as AMD's new opportunity?

He said AMD's push into AI has opened another growth opportunity as the industry shifts from model training toward inference and agentic AI.

What is AMD doing to expand its AI strategy beyond chips?

It agreed on September 28 to acquire AI model developer World Labs for approximately $8.2 billion in an all-stock transaction, with World Labs co-founder Fei-Fei Li expected to join AMD as executive vice president and chief scientist after the deal's expected closing by the end of 2026.

Does Cramer think AMD is a cheap stock?

No — the piece says AMD may be a buy, but it is certainly not cheap.

AI Stocks & MarketsTop Companies' AI MovesAI Business & IndustryTop Companies AI4m agoOct 12, 2026, 06:30 JST

Jim Cramer: AMD's AI inference push opens growth

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3 Key Points

What happened
On the September 28 Mad Money episode, Jim Cramer pointed to Advanced Micro Devices' roughly 13% gain the prior week and its brief climb above a $1 trillion market capitalization.
Why it matters
Cramer's argument is that the demand center is moving toward inference and agentic AI, and he has now gone on record that this shift hands a chipmaker like AMD another opening — not a one-off pop.

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Context & Analysis

Cramer's case rests on timing as much as products. Model training has been the headline phase of the AI buildout; the shift toward inference and agentic AI changes what customers buy and how often they buy it.

AMD's numbers give the argument something concrete to stand on. Second-quarter revenue rose 50% year over year to $11.5 billion, with Data Center at $6.7 billion and 58% of total revenue, and the company expects roughly $13 billion of third-quarter revenue. Lisa Su described entering the second half with "strong momentum" as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.

The World Labs acquisition adds a different dimension. Buying an AI model developer — with co-founder Fei-Fei Li expected to join as executive vice president and chief scientist — suggests AMD wants a deeper read on how models are evolving, not just a faster chip. Cramer also tied the story to Su herself, crediting a management approach aimed at convincing customers to design AMD chips into future product iterations.

FAQ

What did Cramer actually point to as AMD's new opportunity?: He said AMD's push into AI has opened another growth opportunity as the industry shifts from model training toward inference and agentic AI.
What is AMD doing to expand its AI strategy beyond chips?: It agreed on September 28 to acquire AI model developer World Labs for approximately $8.2 billion in an all-stock transaction, with World Labs co-founder Fei-Fei Li expected to join AMD as executive vice president and chief scientist after the deal's expected closing by the end of 2026.
Does Cramer think AMD is a cheap stock?: No — the piece says AMD may be a buy, but it is certainly not cheap.

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