IB Net Payout Yields Model

AMD: Untold Margin Story

AMD takes a hit from $30 despite a bullish analyst call with a $35 target.
Most analysts continue to under estimate the gross margin upside for the chip company.
The 2020 base case is the average analyst estimates for $8.25 billion in revenues and $1 EPS.
The EPS upside is $2-plus based on higher margins from market share gains.
The market continues to underestimate the margin improvements in the works at Advanced Micro Devices (AMD) that will drive substantial improvement in profits and hence profits per share. The shift to 7nm chips will lead the company to a technological position it hasn't held in comparison to Intel (INTC) in a long time, allowing for better pricing scenarios and substantial margin improvements. At $28, AMD isn't the great deal the stock was at the end of 2018, but AMD still has more upside in 2019.
Read the full article on Seeking Alpha. 
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