AMD: Not The $4 Billion Reasons To Own

 

  • AMD announced a $4 billion share buyback cheered by the market, yet only amounting to 3% of the combined company once adding Xilinx.
  • The combined company expects billions in additional revenue by 2023 in comparison to when the merger was announced just in October.
  • The stock is cheap as 2022 EPS estimates start pushing toward $3.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

Now that Advanced Micro Devices (AMD) has dispelled the Intel (INTC) risks in the near term, investors can return to focusing on the long-term growth story of the chip company. The recent dip into the low $70s provided an opportune time for new investors to invest in this story alongside the company. My investment thesis remains highly bullish on the stock.

Read the full article on Seeking Alpha. 

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


Update - June 2

Just another reason to own AMD. SemiAccurate has the chip company taking the lead in advanced packing due to their new 3D V-Cache product. 

-AMD just vaulted back into the advanced packaging lead last night with their 3D V-Cache technology. SemiAccurate will try to explain why this is several steps beyond what others have done or even shown off.

The stock continues to hold support just below $75, but AMD hasn't broken the downtrend yet. 

Finviz Chart

Update - July 8

Boom times! GS should've issued a $150 PT with that '23 EPS estimate. The Chinese review of the Xilinx deal isn't a reason to sell AMD. 

-Thinking the Street is underestimating AMD's (NASDAQ:AMD) near- and long-term revenue growth and margin expansion potential, Goldman Sachs raises its price target from $106 to $111. The firm reiterates a Buy rating and AMD's place on its conviction buy list.

-Goldman estimates non-GAAP EPS of $3.81 for 2022 and $5.48 for 2023, 41% and 64% above consensus, respectively.

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