IB Net Payout Yields Model

AMD: Not Priced For Perfection

AMD isn't priced for perfection based on the Nvidia path.
Investors tend to forget that AMD was priced for a financial disaster back in 2016.
Nvidia has more normalized growth projections and still trades at 30x forward EPS estimates.
My $15 billion revenue, $3 EPS plan would position the stock for substantial gains in the next few years inline with Nvidia from a few years ago.
Due to the large rally in the stock of Advanced Micro Devices (AMD), investors consider the stock priced for perfection and pressured to meet lofty financial targets in 2020. The odd part is that Nvidia (NVDA) had a similar rally a few years ago and the stock traded at much higher peak valuation multiples than AMD is currently. The major separating fact is that AMD traded at distressed prices back in 2016 before these stocks rallied. My investment thesis remains very bullish on AMD due to the $15 billion sales plan.
Read the full article on Seeking Alpha. 

Update - December 14
Microsoft (MSFT) unveils its Xbox Series X, which will go on sale during the 2020 holiday season. AMD should expect a big rebound in console revenues next year. 2020 is shaping up for some huge records. 

Update - December 20
AMD is trying to break the upper trend today. So many investors are holding off on selling to avoid paying taxes in 2019 that the stock likely runs into the year end. One should look for a pullback in January. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 


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