Opinions
Cameron Hurst
Advanced Micro Devices
AMD-Q
COMMENT
Oct 10, 2017
Stock price when the opinion was issued
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Though decent value, it can fall further. It's second place in a very competitive business. NVDA has been sucking all the air out of the room. He won't touch semis unless the sector is really beaten up and broken. That said, the CEO is very smart and they have some good products. Problem is, there's so much passive money in the market, especially chips, and that excess needs to be burned off.
Makes great chips. It's software, not hardware. Hasn't been able to deliver the ecosystem to handle AI workloads effectively or reliably. He'd be much more bullish if it could get its act together on this.
Not gained market share. Not even close to NVDA. Success with hyperscalers, but not with the average customer. Has taken data centre market share.
Although she doesn't own it she has traded it. She is cautious on the run-up and AI sector but it could show good growth and there is still room to run in the sector. It scores 8 out of 10 fundamentally. There is a mix of buy and hold on the street and analysts see an upside of 12 to 13% in valuation. You could keep holding it but also do some trimming.
It is tough to not like on what they have done in one year. Semis have been phenomenal, and this company has been right in there. It has consolidated more in the last little while. He got a little more cautious on tech a number of months ago, when it started to break down on the relative. However, semis have really come on and the numbers are looking okay. He would have a hard time arguing against this one. However, the valuation is tough, which is what would trip him up. He would prefer an ETF that replicates the stocks, and give you a basket approach.