Tom Nash
patreon
AMD Video Summary
🕑 Added 2021-05-16 09:54:15 +0000 UTCHey Patreons, here are the key highlights from the AMD video I posted yesterday so you don't have to watch the whole thing if you are busy.
AMD β Executive Summary
1. Down from $86 on April 28 - Closed on $75 on May 14 - 12.7% drop in 2 weeks.
2. Drop catalyst: high inflation numbers for April (4.2% largest increase in 12 years). Interest rate increase concerns. All tech stocks are down and AMD along with it.
3. Is inflation relevant for AMD β no - cash flow positive well established blue chip company with leading in class product line (Ryzen product line is now an industry leader). Impulsive emotional selling.
4. Q1 Financials: Q1 revenues up 93% year over year ($3.4b).
5. Future growth catalyst: 61% of revenues came from graphics and computing, 2.1B, growth of 46% yoy & Enterprise server segment grew by 290% to 1.3B - fastest growing AMD segment. The enterprise and server side products development, in addition to Ryzen dominance and chip shortage for the next 2 years. AMD's server market share is increasing rapidly and poised to drive the next 5 year growth pattern. Currently only 9% of the global market.
6. Real Valuation: Total revenues expected to grow 50% to $14b in 2021 - There are 3 growth scenario: 20% 25% and 30% for the next 5 years, if the average growth is 25% its priced just right, if 30% its 22% under and if 20% its 25% over.
Comments
Savu Silviu Corneliu
Hey Tom, would you say AMD poor manβs covered call is a good strategy since at the moment IV is low (good for buying LEAPS) and since it will rise, selling calls would bring in extra premium to lower the cost basis of the leaps?
Daniel Tappman
Thanks Tom! I recently put some money on AMD for the long haul and this makes me feel good about that decision
Tony Vejseli
ππ
