Wednesday, January 22, 2014

AMD 1Q04 Guidance Up 25% YoY

AMD had the great 4Q03, which showed a 9% sequential growth from 3Q03.
1Q04 will be down sequentially, but is guided up 25% from 1Q03, from 1.09 billion of revenue in 1Q 2013 to 1.36 billion in 1Q 2014.

AMD put the 8-core Jaguar AMD64 APUs used in XB1 and PS4 into the Graphics category. If you count the XB1 and PS4 as CPUs, you see AMD CPU business increasing at a 40% rate. This is AMD's way of getting more business without alerting Intel, which is a one-trick-pony, but has the resources to acquire the necessary IP. PC business is in perpetual decline. AMD's strategy is to become an chip solutions provider, not a PC component maker.

AMD is no longer endangered by Intel's price wars and illegal marketing ploys. With 55% of its revenue from the non-computing solutions group, AMD has disengaged from Intel's claws. 

AMD's marketing cap is 50% of its revenue. NVDA has less revenue than AMD, but its market cap is 3x of AMD. If AMD can distance itself from the declining PC market, its valuation should be at the same level of NVIDIA or more. The Shorts of AMD like you to treat AMD as a dying company. But AMD has stabilized on its own turf, and is thriving on its broad IP portfolio, which can't be matched by Intel.


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12:49 AM, November 17, 2015  

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