Advanced Micro Devices, Inc. ($AMD) Earnings (Q3 FY22)

 Advanced Micro Devices, Inc. ($AMD) Earnings and Opinion:


Advanced Micro Devices is a company in the Technology sector and operates in the Semiconductors industry. The company operates as a semiconductor company worldwide. Advanced Micro Devices was incorporated in 1969 and is currently headquartered in Santa Clara, California. The company made its debut on the stock market in 1972.

Advanced Micro Devices Earnings Results:

  • Revenue of $5.57B missing expectations of $5.58B
  • Adj Operating Income of $1.26B missing expectations of $1.29B
  • Operating Margin of 19.68% missing expectations of 20.16%
  • Adj Diluted EPS of $0.67 beating expectations of $0.65
Opinion:
AMD is up almost 5% in the after-hours market. The company reported earnings after the market closed this afternoon. AMD have a downbeat forecast for Q4, which dictated the change early, but has rebounded into positive territory. The market has been tough for AMD, as the demand for computers has seen a fall. AMD is the second-largest chipmaker for computer processors. This could be an explanation for the sales warning they issued earlier in Q3. The management thinks it will make it out of this economic slowdown effectively. They credited a strong balance sheet and investment portfolio. Semiconductor companies have been hit very hard this year, but with some help from government incentives, it could see a rise soon. The misses were pretty bad for AMD, however, they were able to beat on the profitability with Diluted EPS coming in higher than the expectation. As far as valuation goes, the company seems to be a little undervalued. The P/S ratio comes in at 3.80, which is less than peers at 4.79. The P/B is at 1.74, which is lower than the median of 3.69. I would like this to jump a little bit to get some more growth out of this company. In my opinion, I think semiconductors will play a huge role in the technological evolution. Therefore, I am pretty biased on buy opinions when it comes to semiconductor stocks. AMD seems to be pretty attractive here, with the stock slumping a lot this year. It has been a bad year for computer demand, so therefore a bad year for AMD. I think the company is doing all of the things right, it is just a matter of time when the demand will pick back up. The CHIPS Act will help out the company as well, so it should be a bright future for the company. I am long Advanced Micro Devices $AMD.


*Information from Yahoo Finance and Bloomberg

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