eyeQ: a stock that’s 24% cheap to fair value
Experts at eyeQ have used AI and their own smart machine to analyse macro conditions and generate actionable trading signals. This share has triggered a bullish signal.
2nd December 2025 10:19
by Huw Roberts from eyeQ
“Our signals are crafted through macro-valuation, trend analysis, and meticulous back-testing. This combination ensures a comprehensive evaluation of an asset's value, market conditions, and historical performance.” eyeQ
- Discover: eyeQ analysis explained | eyeQ: our smart machine in action | Glossary
AMD
Macro Relevance: 84%
Model Value: $272.63
Fair Value Gap: -24.06% discount to model value
Data correct as at 2 December 2025. Please click glossary for explanation of terms. Long-term strategic model.
Last week we flagged Oracle Corp (NYSE:ORCL) as an artificial intelligence (AI) play that had fallen out of favour but which, from a macro perspective, had potentially fallen too far.
We have a similar story with chip maker Advanced Micro Devices Inc (NASDAQ:AMD), which now sits 24% cheap to macro fair value - enough to trigger a bullish signal.
The signal has arisen because the stock price and eyeQ model value have moved in opposite directions over recent weeks.
AMD has fallen around 17% from the late October high. A week ago, they reported decent earnings, but that wasn’t sufficient to insulate the stock from general AI concerns as the mood music flips from unquestioned upside to worries about competition and high capital expenditure spending.
Meanwhile, eyeQ model value has surged higher; it’s risen 22.5% since mid-November. Macro relevance is high (84%) and our model shows the chipmaker wants a weaker dollar, healthy risk appetite (falling VIX) and decent economic growth, especially in Asia. All three of those macro factors have moved in the right direction and fuelled this surge in eyeQ model momentum.
So, in short, it’s the same message as Oracle last week. For true believers in the AI trade who see this latest setback as a short-term blip, AMD is offering attractive entry levels.
Source: eyeQ. Past performance is not a guide to future performance.
Useful terminology:
Model value
Where our smart machine calculates that any stock market index, single stock or exchange-traded fund (ETF) should be priced (the fair value) given the overall macroeconomic environment.
Model (macro) relevance
How confident we are in the model value. The higher the number the better! Above 65% means the macro environment is critical, so any valuation signals carry strong weight. Below 65%, we deem that something other than macro is driving the price.
Fair Value Gap (FVG)
The difference between our model value (fair value) and where the price currently is. A positive Fair Value Gap means the security is above the model value, which we refer to as “rich”. A negative FVG means that it's cheap. The bigger the FVG, the bigger the dislocation and therefore a better entry level for trades.
Long Term model
This model looks at share prices over the last 12 months, captures the company’s relationship with growth, inflation, currency shifts, central bank policy etc and calculates our key results - model value, model relevance, Fair Value Gap.
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