Should you buy AMD stock? (September 2023)

September 23rd, 2023· 854 views· 2:40

AMD stock analysis. Ticker: AMD Join 10,000 investors: https://www.overlookedalpha.com AMD is what’s known as a fabless semiconductor company. It designs and tests powerful computer chips then outsources the manufacturing to TSMC. At the current share price, AMD has a market cap of 155 billion dollars making it the third largest semiconductor company in the US. The company has 6.3 billion of cash and investments on the balance sheet and 1.7 billion of long-term debt so the enterprise value is 151 billion. Despite the boom in artificial intelligence, AMD recently reported an 18% fall in revenue taking its 12 month total to 22 billion. Net income over the last 12 months has also turned negative at minus 25 million. The main reason is that AMD designs a lot of CPU chips used in computers instead of the GPU chips that are used in AI. Looking at the table you can see that AMD revenue is split fairly evenly across 4 segments; data center, client, gaming and embedded. Data center, client and gaming revenue was all down in the first half of the year. Managements explanation for this was a weak PC market and lower consumers sales. #amdstock #investing #overlookedalpha #stockmarket