Tech Stock $AMD Heading For Another Trifold? : (NYSE:AMD) Advanced Micro Devices Inc.

Discussion in 'Stocks' started by Aschachter, May 15, 2013.

  1. thembones

    thembones

    I am a deep value, fundamental investor, took time to read the o'neil IBD book and a few tech analysis books. I am a total rookie vs everyone here on the technical stuff but what i'd say on AMD is the overall play is that AMD chips will be in both the xbox 720 and PS4 and both of those use similar 386 architecture so it's relatively "easy" for AMD to produce and they can still get good margins. On top of that AMD changed its strategy to focus on low to mid priced PCs/laptops/tablets because the thinking is they will never be able to compete with INTC at the high end but at the same time, the majority of consumers really go for the mid to low price PCs. esp now, u get so much firepower for relatively inexpensive machines. So those two things along with a cheap stock price have been the reason for interest in AMD. If they can generate some cash flow, the balance sheet can improve and keep in mind these guys have $1B of net debt and are cash flow negative so there's risk to them here and why the stock is cheap. they need to demonstrate they cna actually make money off this strategy, the stock is about 1/4 of the valuation of INTC of P/S. It's why I think this can be a 2-3 bagger IF they show they can execute.
     
    #11     Jun 13, 2013
  2. Quanto

    Quanto

    MktCap of AMD has now reached 1.56x that of INTC: AMD=281B, INTC=180B
     
    #12     Feb 6, 2024