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.
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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.
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.