2024-05-06 20:00:48 ET
Summary
- Advanced Micro Devices, Inc.'s quarterly results disappointed investors, with weakness in Gaming and Embedded segments offsetting strong gains in Data Center sales.
- The company increased its AI GPU target for the year to $4 billion, but investors were hoping for a larger increase.
- AMD is facing supply constraints but expects to ramp up supply throughout the year, potentially leading to a sales inflection in the 2H.
- The stock trades at only 27x forward EPS estimates without a major inflection point factored into consensus estimates.
Advanced Micro Devices, Inc. ( AMD ) slumped following quarterly results that generally disappointed investors . The chip company didn't guide up enough on AI GPU demand to meet investor hype, though AMD hasn't ruled out a major inflection point in sales. My investment thesis remains Bullish on the stock, with the market possibly misunderstanding the AI demand scenario....
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AMD: Waiting On AI Inflection Point