AMD - Embedded Expectations Analysis - 2018 12 14
Advanced Micro Devices, Inc. (AMD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Assets, with a 3.6x Uniform P/B, implying bullish expectations for the firm. However, management has concerns about their Ryzen product sales, balance sheet management, and their revenue guidanceSpecifically, management may lack confidence in their ability to sustain strong growth of their client processor ASP, and may be concerned about their expansion of desktop offerings into the entry-level part of the market. Additionally, they may lack confidence in the potential of their 7nm data center GPU planned for launch this quarter, and to maintain strong win rates on their HPC front. Moreover, they may lack confidence in their assertion that they will be in a stronger competitive position throughout 2019, and may have concerns about their CG segment. Furthermore, they may lack confidence in their ability to sustain strong Ryzen product sales, and may be exaggerating the revenue headwinds attributable to lower semi-custom product and IP-related revenue. In addition, they may be concerned about their balance sheet, and may lack confidence in their ability to meet their revenue guidance for Q4 2018
Advanced Micro Devices is a semiconductor company. The company primarily provides x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit, chipsets, graphics processing units (GPUs), data center and personnel GPUs, and development services; server and embedded processors, semi-custom System-on-Chip products, development services and technology for game consoles. The company also licenses portions of its intellectual property portfolio. The company's segments are: Computing and Graphics, which consists of desktop, notebooks, commercial, and chipsets products; and Enterprise, Embedded and Semi-Custom, which includes server processors, and embedded P\processors products.
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