AMD

Advanced Micro Devices Inc.

TMT


Presented:05/09/2024
Price:$152.39
Cap:$246.31B
Current Price:$156.64
Cap:$253.52B

Presented

Date05/09/2024
Price$152.39
Market Cap$246.31B
Ent Value$292.79B
P/E Ratio222.6x
Book Value$34.73
Div Yield0%
Shares O/S1,616.31M
Ave Daily Vol62,956,746
Short Int2.02%

Current

Price$156.64
Market Cap$253.52B
Advanced Micro Devices, Inc. engages in the provision of semiconductor businesses. It operates through the following segments: Data Center, Client, Gaming, and Embedded. The Data Center segment includes server-class CPUs, GPUs, AI accelerators, DPUs, FPGAs, SmartNICs, and Adaptive SoC products. The Client segment refers to the computing platforms, which are a collection of technologies that are designed to work together to provide a more complete computing solution. The Gaming segment is a fundamental component across many products and can be found in APU, GPU, SoC or a combination of a discrete GPU with another product working in tandem. The Embedded segment focuses on the embedded CPUs, GPUs, APUs, FPGAs, and Adaptive SoC products. The company was founded by W. J. Sanders III on May 1, 1969 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Advanced Micro Devices Inc (AMD), Intel Corp (INTC), Microsoft Corp (MSFT), NVIDIA Corp (NVDA), Snowflake Inc (SNOW)

Highlights

The presenter is long shares of Advanced Micro Devices Inc (AMD), believing market sentiment has become overly negative following NVDA’s GPU Technology Conference (GTC) in March, which creates a similar setup to last fall when the stock was trading below $100 per share. This negativity stems from the new Blackwell GPU that NVDA presented at GTC and is heralded as a game-changer by many investors. In contrast, the presenter doesn’t view Blackwell as significantly differentiated and expects the hype cycle for AMD to begin this fall when positive checks around AMD’s MI400 (2025 release) start crystalizing in investors’ models. He is comfortable with the outlook for the rest of the business between now and then, which allows him to look forward to 2025 expectations. Modeling ~$15B of data center revenue in 2025 leads to >$7 of EPS (vs. the Street’s $5.46), and he believes the strong growth would earn the stock a 30x EPS valuation, ultimately driving major upside from the current $153 share price.

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Idea Discussion

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