AMD to hit $48 in 12 months
### Company Summary
Advanced Micro Devices, Inc. (AMD) is an American semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. While initially it manufactured its own processors, the company later outsourced its manufacturing, a practice known as fabless, after GlobalFoundries was spun off in 2009. AMD's main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.
AMD is the second-largest supplier and only significant rival to Intel in the market for x86-based microprocessors. Since acquiring ATI in 2006, AMD and its competitor Nvidia have dominated the discrete Graphics Processing Unit (GPU) market.
Lisa Su (born 1969) is a Taiwanese-American business executive and electrical engineer, Ph.D. from MIT in 1994, and the CEO and president of Advanced Micro Devices (AMD). Early in her career, Su worked at Texas Instruments, IBM, and Freescale Semiconductor in engineering and management positions.She is known for her work developing silicon-on-insulator semiconductor manufacturing technologies and more efficient semiconductor chips during her time as vice president of IBM's Semiconductor Research and Development Center.
Su was appointed president and CEO of AMD in October 2014, after joining the company in 2012 and holding roles such as senior vice president of AMD's global business units and chief operating officer. She currently serves on the boards of Analog Devices, Global Semiconductor Alliance and the U.S. Semiconductor Industry Association, and is a fellow of the Institute of Electrical and Electronics Engineers (IEEE). Recognized with a number of awards and accolades, she was named Executive of the Year by EE Times in 2014 and one of the World's Greatest Leaders in 2017 by Fortune.
According to Form 10-Q of AMD filed, AMD is a global semiconductor company with facilities around the world. Within the global semiconductor industry, primarily offering:
* x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and
* server and embedded processors, semi-custom System-on-Chip (SoC) products and technology for game consoles. AMD also licenses portions of intellectual property (IP) portfolio.
AMD's financial results for the second quarter of 2018 demonstrate continued success in the execution of AMD's long-term strategy for sustained growth. Net revenue in the second quarter of 2018 was $1.76 billion, a 53% increase compared to the second quarter of 2017. The year-over-year increase was primarily due to a 64% increase in Computing and Graphics net revenue and a 37% increase in Enterprise, Embedded and Semi-Custom net revenue. The increase in the Computing and Graphics segment net revenue was primarily due to higher sales of AMD's RadeonTM and RyzenTM products. The increase in the Enterprise, Embedded and Semi-Custom segment net revenue was primarily due to higher semi-custom revenue as well as higher EPYCTM server revenue. AMD's operating income for the second quarter of 2018 was $153 million compared to an operating loss of $1 million in the second quarter of 2017. AMD's net income for the second quarter of 2018 was $116 million compared to a net loss of $42 million in the second quarter of 2017.
AMD continued to introduce new products in the second quarter of 2018, including premium notebook AMD Ryzen PRO APUs designed specifically for the commercial market. AMD also announced the availability of four models of AMD's 2nd Generation Ryzen desktop CPUs optimized for gamers, creators and hardware enthusiasts.
Cash, cash equivalents and marketable securities as of the end of the second quarter of 2018 were $983 million, compared to $1.18 billion as of the end of the fourth quarter of 2017.
AMD intends the discussion of financial condition and results of operations that follows to provide information that will assist you in understanding AMD's financial statements, the changes in certain key items in those financial statements from year to year and quarter to quarter, the primary factors that resulted in those changes, and how certain accounting principles, policies and estimates affect AMD's financial statements.
### Statistics
Shares Outstanding: 0.97B
Avg Daily Vol: 100.7M
Market Cap: 31.5B
52-Week High: $32.22
52-Week Low: $9.04
Forward PE: 42.71
Annual Div/Dividend Yield: $0.00 / 0.00%
Annual Rev: 6.9B
Inst Own: 68.1%
1-Month Return: 15.5%
3-Month Return: 45.7%
Next Earnings Report Date: 10/23/2018
Earnings ESP: NA
Revenue Per Employee: $742,133
Money Flow Ratio: 1.04%
### Profitability
Revenue Growth: 40.4% (Sector Average 9.8%)
Gross Margin: 36.1% (Sector Average 38.8%)
Return on Equity: 47.1% (Sector Average 7.1%)
Net Margin: 5.4% (Sector Average 4.9%)
### Debt
Current Ratio: 1.8 (Sector Average 2.9)
Debt-to-Capital: 67.1% (Sector Average 25.9%)
Interest Funding: 18.5% (Sector Average 5.1%)
Interest Coverage: 4.5 (Sector Average 4.2)
### Dividend
Dividend Growth: NA (Sector Average 12.8%)
Dividend Payout: NA (Sector Average 35.8%)
Dividend Coverage: NA (Sector Average 3.8)
Dividend Yield: NA (Sector Average 0.0%)
### Top Peer Companies
Avid Technology, Inc (AVID)
Cabot Microelectronics Corporation (CCMP)
Cirrus Logic, Inc (CRUS)
DIALOG SEMICON (DLGNF)
Diodes Inc (DIOD)
EMC Corp (EMC)
F5 Networks Inc (FFIV)
Falconstor Software Inc (FALC)
Intel Corp (INTC)
International Business Machines Corp (IBM)
Lattice Semiconductor Corporation (LSCC)
Mellanox Technologies, Ltd (MLNX)
Netapp, Inc (NTAP)
Nvidia Corp (NVDA)
Oracle Corporation (ORCL)
PMC Sierra Inc (PMCS)
Unisys Corp (UIS)
### 12 Month Price Target
Mean: $39.01
High: $48.77
Low: $25.13
### Revenue Growth
Approximated quarterly revenue growth compared to the same quarter of the year before are as follows:
Q1 2015: -26.3 %
Q2 2015: -34.7 %
Q3 2015: -25.7 %
Q4 2015: -22.7 %
Q1 2016: -19.2 %
Q2 2016: 9.0 %
Q3 2016: 23.2 %
Q4 2016: 15.5 %
Q1 2017: 33.8 %
Q2 2017: 25.7 %
Q3 2017: 19.0 %
Q4 2017: 18.3 %
Q1 2018: 67.4 %
Q2 2018: 43.7 %
### Earnings Surprise
Positive (+10.3%)
https://aicody.com/articles/stocks/amd-inc-electronics-semiconductors-stock-analysis-rating-2018-forecast-nvclush7fsnz042s/
Advanced Micro Devices, Inc. (AMD) is an American semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. While initially it manufactured its own processors, the company later outsourced its manufacturing, a practice known as fabless, after GlobalFoundries was spun off in 2009. AMD's main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications.
AMD is the second-largest supplier and only significant rival to Intel in the market for x86-based microprocessors. Since acquiring ATI in 2006, AMD and its competitor Nvidia have dominated the discrete Graphics Processing Unit (GPU) market.
Lisa Su (born 1969) is a Taiwanese-American business executive and electrical engineer, Ph.D. from MIT in 1994, and the CEO and president of Advanced Micro Devices (AMD). Early in her career, Su worked at Texas Instruments, IBM, and Freescale Semiconductor in engineering and management positions.She is known for her work developing silicon-on-insulator semiconductor manufacturing technologies and more efficient semiconductor chips during her time as vice president of IBM's Semiconductor Research and Development Center.
Su was appointed president and CEO of AMD in October 2014, after joining the company in 2012 and holding roles such as senior vice president of AMD's global business units and chief operating officer. She currently serves on the boards of Analog Devices, Global Semiconductor Alliance and the U.S. Semiconductor Industry Association, and is a fellow of the Institute of Electrical and Electronics Engineers (IEEE). Recognized with a number of awards and accolades, she was named Executive of the Year by EE Times in 2014 and one of the World's Greatest Leaders in 2017 by Fortune.
According to Form 10-Q of AMD filed, AMD is a global semiconductor company with facilities around the world. Within the global semiconductor industry, primarily offering:
* x86 microprocessors, as standalone devices or as incorporated into an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and
* server and embedded processors, semi-custom System-on-Chip (SoC) products and technology for game consoles. AMD also licenses portions of intellectual property (IP) portfolio.
AMD's financial results for the second quarter of 2018 demonstrate continued success in the execution of AMD's long-term strategy for sustained growth. Net revenue in the second quarter of 2018 was $1.76 billion, a 53% increase compared to the second quarter of 2017. The year-over-year increase was primarily due to a 64% increase in Computing and Graphics net revenue and a 37% increase in Enterprise, Embedded and Semi-Custom net revenue. The increase in the Computing and Graphics segment net revenue was primarily due to higher sales of AMD's RadeonTM and RyzenTM products. The increase in the Enterprise, Embedded and Semi-Custom segment net revenue was primarily due to higher semi-custom revenue as well as higher EPYCTM server revenue. AMD's operating income for the second quarter of 2018 was $153 million compared to an operating loss of $1 million in the second quarter of 2017. AMD's net income for the second quarter of 2018 was $116 million compared to a net loss of $42 million in the second quarter of 2017.
AMD continued to introduce new products in the second quarter of 2018, including premium notebook AMD Ryzen PRO APUs designed specifically for the commercial market. AMD also announced the availability of four models of AMD's 2nd Generation Ryzen desktop CPUs optimized for gamers, creators and hardware enthusiasts.
Cash, cash equivalents and marketable securities as of the end of the second quarter of 2018 were $983 million, compared to $1.18 billion as of the end of the fourth quarter of 2017.
AMD intends the discussion of financial condition and results of operations that follows to provide information that will assist you in understanding AMD's financial statements, the changes in certain key items in those financial statements from year to year and quarter to quarter, the primary factors that resulted in those changes, and how certain accounting principles, policies and estimates affect AMD's financial statements.
### Statistics
Shares Outstanding: 0.97B
Avg Daily Vol: 100.7M
Market Cap: 31.5B
52-Week High: $32.22
52-Week Low: $9.04
Forward PE: 42.71
Annual Div/Dividend Yield: $0.00 / 0.00%
Annual Rev: 6.9B
Inst Own: 68.1%
1-Month Return: 15.5%
3-Month Return: 45.7%
Next Earnings Report Date: 10/23/2018
Earnings ESP: NA
Revenue Per Employee: $742,133
Money Flow Ratio: 1.04%
### Profitability
Revenue Growth: 40.4% (Sector Average 9.8%)
Gross Margin: 36.1% (Sector Average 38.8%)
Return on Equity: 47.1% (Sector Average 7.1%)
Net Margin: 5.4% (Sector Average 4.9%)
### Debt
Current Ratio: 1.8 (Sector Average 2.9)
Debt-to-Capital: 67.1% (Sector Average 25.9%)
Interest Funding: 18.5% (Sector Average 5.1%)
Interest Coverage: 4.5 (Sector Average 4.2)
### Dividend
Dividend Growth: NA (Sector Average 12.8%)
Dividend Payout: NA (Sector Average 35.8%)
Dividend Coverage: NA (Sector Average 3.8)
Dividend Yield: NA (Sector Average 0.0%)
### Top Peer Companies
Avid Technology, Inc (AVID)
Cabot Microelectronics Corporation (CCMP)
Cirrus Logic, Inc (CRUS)
DIALOG SEMICON (DLGNF)
Diodes Inc (DIOD)
EMC Corp (EMC)
F5 Networks Inc (FFIV)
Falconstor Software Inc (FALC)
Intel Corp (INTC)
International Business Machines Corp (IBM)
Lattice Semiconductor Corporation (LSCC)
Mellanox Technologies, Ltd (MLNX)
Netapp, Inc (NTAP)
Nvidia Corp (NVDA)
Oracle Corporation (ORCL)
PMC Sierra Inc (PMCS)
Unisys Corp (UIS)
### 12 Month Price Target
Mean: $39.01
High: $48.77
Low: $25.13
### Revenue Growth
Approximated quarterly revenue growth compared to the same quarter of the year before are as follows:
Q1 2015: -26.3 %
Q2 2015: -34.7 %
Q3 2015: -25.7 %
Q4 2015: -22.7 %
Q1 2016: -19.2 %
Q2 2016: 9.0 %
Q3 2016: 23.2 %
Q4 2016: 15.5 %
Q1 2017: 33.8 %
Q2 2017: 25.7 %
Q3 2017: 19.0 %
Q4 2017: 18.3 %
Q1 2018: 67.4 %
Q2 2018: 43.7 %
### Earnings Surprise
Positive (+10.3%)
https://aicody.com/articles/stocks/amd-inc-electronics-semiconductors-stock-analysis-rating-2018-forecast-nvclush7fsnz042s/
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