AMD - Embedded Expectations Analysis - 2021 07 20
Advanced Micro Devices, Inc. (AMD:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 38.3x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is excited about their work on ARM architecture and confident about client processor revenues and substrate capacity investments.Specifically, management generated an excitement marker when saying they know the ARM microprocessor architecture well. They are also confident they set records for client processor revenue and ASP and that they are focused on optimizing solutions across their data center and PC ecosystem. Additionally, management is confident they are investing in substrate capacity, saw a positive inflection in free cash flow, and that gamers are appreciating their RDNA 2 product.
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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