Chris Lau
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Chris Lau in Value Stocks,

Preview: So What if AMD Slumps

An article regarding AMD’s quarterly results, outlook and direction next is in the queue. Premium followers received the alert yesterday. The key points are:

Competition from Nvidia (NVDA) is not far behind, but it is also not meaningful at this time, especially as graphics card sales dominate sales during the holidays

The good:

  • AMD’s revenue rose 23% Y/Y
  • Semi-custom and GPU sales strong
  • Mobile APU and discreet GPU demand healthy
  • Inventory up
  • Zen Summit Ridge is on schedule for 2017 launch

The weary:

  • Stock dilution and debt issuance a drag, but saves the company millions in interest
  • WSA re-negotiation cost AMD big in the short-term, but gives the company flexibility

AMD’s buzz:

AMD misses out on the Nintendo Switch buzz, since NVDA supplies the chips.


Fortunately, AMD's brand is still holding consumer interest:

Bulls are still in control. Maintaining bullish call on AMD:

Free: Bull and bear calls on AMD