AMD

Advanced Micro Devices Inc

TMT


Presented:07/12/2016
Price:$5.14
Cap:$4.08B
Current Price:$156.64
Cap:$253.52B

Presented

Date07/12/2016
Price$5.14
Market Cap$4.08B
Ent Value$3.73B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S793.00M
Ave Daily Vol24,594,552
Short Int18.59%

Current

Price$156.64
Market Cap$253.52B
Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. The company operates through two business segments: Computing and Graphics Solutions, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop, notebook processors, chipsets, discrete GPUs and professional graphics. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. Advanced Micro Devices was founded by W. J. Sanders III and David John Carey on May 1, 1969 and is headquartered in Sunnyvale, CA.

Publicly traded companies mentioned herein: Advanced Micro Devices Inc. (AMD), Intel (INTC), NVIDIA (NVDA) and Nintendo (NTDOY).

Highlights

Up nearly 80% year to date, AMD remains a levered business that generates negative EBITDA and burns cash. The company extended much of its debt out to 2019-20, leading the presenter to conclude that management may eventually be forced to raise equity capital in order to right-size the balance sheet. The presenter is short shares on the belief that the Street is projecting far too much in the way of market share gains from several new or soon-to-be-released AMD products. He noted that AMD has had just 3 positive earnings years out of the past 10, and only 2 consecutive years of positive earnings over that same period.

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Idea Discussion

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