Advanced Micro Devices

Published: 01 May 2023 17:45 CET

Analyst:

Stephan Analyst
Analyst
stephan.joehri2@adviscent.com
07633115

Rating:Buy View rating history	Country:USA	Sector:Information Technology	Subsector:Semiconductors & Semiconductor Equipment
Rating:Buy View rating history	ISIN:US0079031078	Risk assessment:-	Sustainability Rating:★★☆☆☆

Investment Case

Semiconductor company Advanced Micro Devices produces personal computer central processing units and graphics processing units, as well as server chips for data centers. AMD management is confident about the company's data center growth opportunities and the benefits of integrating Xilinx into its operations. Arya is also bullish on AMD's conservative outlook for the personal computing market and its pricing discipline. AMD shares trade at just 21.6 times Arya's 2023 earnings per share projections, an attractive valuation for a stock that reported 70.1% revenue growth in the most recent quarter. Bank of America has a "buy" rating and $120 price target for AMD stock, which closed at $92.73 on Aug. 24.

Facts & Figures

General Information

ISIN	US0079031078
Bloomberg Ticker	-
Price ( USD )	-
Market Cap ( USD m )	128,506
Free Float ( % )	-
Net debt	-
Gearing	-
ROE	-
Next reporting date	-

Valuation

	2024	2025	2026
P/E ( USD m )	-	-	-
EV/EBITDA ( USD m )	-	-	-
P/B ( USD m )	-	-	-
Dividend Yield ( USD m )	-	-	-

Financial Data

	2024	2025	2026
Revenue ( USD m )	-	-	-
EBITDA ( USD m )	-	-	-
Net Profit ( USD m )	-	-	-
EPS ( USD )	-	-	-
Dividend ( USD m )	-	-	-

Performance

Peer Group Comparison

Company name	Market Cap (USD m)	P/E (USD m)	EV/EBITDA (Next 12 month) (USD m)	P/B (USD m)	Dividend Yield (USD m)	EPS CAGR (3 years)	EBITDA margin	ROIC	Net debt/EBITDA
Advanced Micro Devices	128,506	-	-	-	-	-	-	-	-
United Micro Electronics Corp	-	-	-	-	-	-	-	-	-
Intel	152,111	-	-	-	-	-	-	-	-

Company details

Company Portrait

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. It operates in four segments: Data Center, Client, Gaming, and Embedded segments. The company offers x86 microprocessors and graphics processing units (GPUs) as an accelerated processing unit, chipsets, data center, and professional GPUs; and embedded processors, and semi-custom system-on-chip (SoC) products, microprocessor and SoC development services and technology, data processing unites, field programmable gate arrays (FPGA), and adaptive SoC products. It also provides processors under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, and AMD PRO A-Series brand names; graphics under the AMD Radeon graphics and AMD Embedded Radeon graphics; and professional graphics under the AMD Radeon Pro graphics brand name. In addition, the company offers data center graphics under the Radeon Instinct and Radeon PRO V-series brands, as well as servers under the AMD Instinct accelerators brand; server microprocessors under the AMD EPYC brands; embedded processor solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series brands; FPGA products under the Virtex-6, Virtex-7, Virtex UltraScale+, Kintex-7, Kintex UltraScale, Kintex UltraScale+, Artix-7, Artix UltraScale+, Spartan-6, and Spartan-7 brands; adaptive SOCs under the Zynq-7000, Zynq UltraScale+ MPSoC, Zynq UltraScale+ RFSoCs, Versal HBM, Versal Premium, Versal Prime, Versal AI Core, Versal AI Edge, Vitis, and Vivado brands; and compute and network acceleration board products under the Alveo brand. It serves original equipment and design manufacturers, public cloud service providers, system integrators, independent distributors, online and brick and mortar retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.

Sustainability Portrait

AMD combines performance and possibility so that together we advance to a better world. As leaders in the semiconductor industry, we embrace the responsibility to protect our planet and the opportunity to help others save energy and reduce GHG emissions. Our environmental programs and initiatives extend across our value chain, and we set ambitious goals and publicly report annually on our progress.

At AMD, our approach to environmental sustainability is based on three pillars:

MINIMIZING environmental impacts at AMD and in our supply chain;
ADVANCING environmental performance for IT users; and
INNOVATING on collaborative solutions to address environmental challenges

Within AMD operations, we aim to minimize energy use and resource consumption while aggressively reducing GHG emissions (aligned with a 1.5°C scenario). We also work closely with our manufacturing suppliers to advance environmental (as well as health and safety) performance metrics. These efforts to mitigate the impacts associated with making and operating AMD technology, as well as optimizing system-level energy efficiency, help our customers and end-users advance their own sustainability goals. For example, using fewer servers to meet data center compute performance needs and upgrading older notebook and desktop computers with more energy-efficient models can reduce electricity use and GHG emissions. Collectively, our innovations and collaborations across the value chain help advance efficient high-performance computing behind innovative solutions like those for optimized renewable energy generation, enhanced automation (smart cities and factories), and cutting-edge climate and scientific research.

We also engage with industry peers, government regulators, civil society organizations and other groups to advance environmental sustainability across our value chain. The collective efforts and innovations stemming from the technology sector exceed what any of us could do as individual organizations.

Important legal Information

Rating history

07.09.2022	Buy
12.08.2022	Hold

* Positive performance in the past is no guarantee of positive performance in the future. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out.

General risk information

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Responsible for compilation: Bank (Switzerland) Ltd., Zurich, Switzerland. Responsible supervisory authority: Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Berne, Switzerland. Responsible for distribution within the meaning of article 8 FinMV [Financial Analysis Market Abuse Ordinance]: Bank Ltd. Responsible for distribution within the meaning of the Directives on the Independence of Financial Research from the Swiss Bankers Association (SBA): Bank (Switzerland) Ltd. Responsible supervisory authority: Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Berne, Switzerland.

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Reference regarding analysis history

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Essential sources of information

Our analysts draw on publicly accessible information we consider to be reliable. For the compilation of the analysis, publications by domestic and foreign media and news services (e.g. Reuters, Bloomberg, VWD etc.), business publications, trade publications, statistics and rating agencies were used, together with information from the issuers of the analyzed securities – mainly via the Internet, but also in writing or by telephone. We also procure information from investment banks (sell-side research and primary research).

Reference regarding valuation rates

Unless otherwise stated or specified, the rates used in the analysis are normally the share prices provided by the news agencies Reuters and/or Bloomberg at the close of the stock exchange of the domestic market of the analyzed security or the relevant principal market of this security on the respective local stock exchange on the eve of the day of compilation.