Opinions
Dan Rohinton
Advanced Micro Devices
AMD-Q
DON'T BUY
Jan 03, 2025
Stock price when the opinion was issued
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AMD is the high performance and adaptive computing leader, powering the products and services that help solve the world’s most important challenges. Our technologies advance the future of the data center, embedded, gaming and PC markets. Founded in 1969 as a Silicon Valley start-up, the AMD journey began with dozens of employees who were passionate about creating leading-edge semiconductor products. AMD has grown into a global company setting the standard for modern computing, with many important industry firsts and major technological achievements along the way. Social media mentions are up 193% in the past 24h.
It used to be 2nd place to Intel. After mobile devices fell out of favour, AMD moved into AI, which is why shares have rallied. As for Nvidia: will AMD catch up? Outside AI-related semis, the semis sector is in pain. He isn't chasing this, especially with the weak CAD--and he feels the same about Nvidia. You could take profits.
Advanced Micro Devices, Inc engages in the provision of semiconductor businesses. It operates through the following segments: Computing & Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs and development services. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles. The company was founded by W. J. Sanders III on May 1, 1969 and is headquartered in Santa Clara, CA. Social media mentions are up 46% in the past 24h.
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.
Growth has been stolen by GPU market due to changing customer demands. Will have to change business plan. Will take time to determine if able to compete in data center market. Believes share price is over valued.