A Very Dim And Distant Second

A Very Dim And Distant Second
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AMD Q1 FY12/24 Earnings Review

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Somebody Tell AMD About That AI Thing

AMD is, as you know, very good at being second-best at stuff. In CPU, to Intel. In GPU, to Nvidia. And whilst that sounds insulting, it need not be so as regards the stock. No markets like single-stock suppliers; in the end either customers or regulators or both revolt when it comes to share dominance. The thing is, for customers to vote with their feet, they have to have a viable alternative; and right now, if you’re a big electronics company and you’re minded not to let Nvidia have all your money, you’re likely to call $ARM before you call $AMD to help you with your AI ambitions. Just ask Apple.

You can see this in AMD’s financials. At a time when demand for AI processing devices is off the charts, AMD is experiencing declining rates of revenue growth and declining cashflow margins. Suggesting that neither price nor volume is providing any kind of salvation at the moment.

Below we lay out the headline numbers (before the paywall) and then take a look at the detailed financials, valuation analysis and our stock price projection, technical analysis and rating (after the paywall).

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AMD Headline Financials

Detailed Fundamental Analysis