Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

Advanced Micro Devices / Equity Bottom-Up

<ul>
<li>3Q24 results inline with Consensus. 4Q guidance slightly below. 2025 Consensus is in the ballpark: 28% revenue growth, 59% EPS growth. The stock trades at average forward PEx 31x.</li>
<li>2024 GPU revenue guidance has increased from US$2bn a year ago to “exceed $5bn”. The concern is that AMD is lagging Nvidia. But AMD’s 1st competitive GPU is available 1Q25.</li>
<li>Other concern is that GPU growth is eating at the CPU market. AMD unit share is ~24% in 2024 (revenue share 33%). AMD can reach 35% unit share by 2026.</li>
</ul>


3Q24 results inline with Consensus. 4Q guidance slightly below. 2025 Consensus is in the ballpark: 28% revenue growth, 59% EPS growth. The stock trades at average forward PEx 31x.
2024 GPU revenue guidance has increased from US$2bn a year ago to “exceed $5bn”. The concern is that AMD is lagging Nvidia. But AMD’s 1st competitive GPU is available 1Q25.
Other concern is that GPU growth is eating at the CPU market. AMD unit share is ~24% in 2024 (revenue share 33%). AMD can reach 35% unit share by 2026.


AMD 3Q24: The Stock Is Down 8% Afterhours. We See Concerns in the Wrong Place, a Buying Opportunity

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Advanced Micro Devices (AMD) reported another quarter of robust performance for Q3 2024, indicating a strong trajectory in key segments, notably its Data Center and Client Processor segments.</li><li>Revenue for the third quarter grew 18% year over year to a record $6.8 billion, primarily driven by doubled sales in the Data Center segment and a 29% increase in the Client segment.</li><li>This growth allows the company to continue its significant investment in research and development as well as market expansion strategies.</li></ul>

Advanced Micro Devices (AMD) reported another quarter of robust performance for Q3 2024, indicating a strong trajectory in key segments, notably its Data Center and Client Processor segments.Revenue for the third quarter grew 18% year over year to a record $6.8 billion, primarily driven by doubled sales in the Data Center segment and a 29% increase in the Client segment.This growth allows the company to continue its significant investment in research and development as well as market expansion strategies.

Inside AMD’s Bold Play for the AI and Data Center Crown – Is Nvidia at Risk?"

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>Q324 revenues of $6.8 billion, $100 million above the guided midpoint, up 17% QoQ and up18% YoY.</li>
<li>Q424 forecast $7.5 billion, plus or minus $300 million. At the midpoint of the revenue range, this represents YoY growth of ~22% and sequential growth of ~10%.</li>
<li>AMD's share price is now roughly the same as it was at the start of 2022, <em><strong>before</strong></em> their DC GPU goldmine was uncovered. Feel free to help yourself...</li>
</ul>


Q324 revenues of $6.8 billion, $100 million above the guided midpoint, up 17% QoQ and up18% YoY.
Q424 forecast $7.5 billion, plus or minus $300 million. At the midpoint of the revenue range, this represents YoY growth of ~22% and sequential growth of ~10%.
AMD's share price is now roughly the same as it was at the start of 2022, before their DC GPU goldmine was uncovered. Feel free to help yourself...


AMD Q324. Now Trading At Early 2022 Levels, Prior To The DC GPU Goldmine..

AI and Global Deep Tech, Mint Finance

Uttkarsh Kohli

AI and Global Deep Tech

Deep Fundamental Analysis

Mint Finance

Mint Finance's investment research blends deep fundamental analysis with technical & quant insights. Investment strategies straddle across multiple asset classes with risk management embedded into every trade to deliver an outsized reward-to-risk ratio.

Mint Finance's research is centered around three key themes. First, energy transition and climate change. Second, artificial intelligence. Third, shifting world order with its impact across politics and monetary economics.

<ul>
<li>AMD's market share in the desktop CPU segment has surged to 30%, driven by strong Ryzen sales and innovative product releases, challenging Intel's longstanding dominance in this space.</li>
<li>Intel's revenue in the data centre segment fell 20% year-over-year, reflecting challenges in product delays and increasing competition from AMD's EPYC processors, impacting overall growth potential.</li>
<li>Both companies have ramped up AI-related investments, with AMD committing $1.5 billion and Intel investing $3 billion in AI technology development, aiming to capitalize on the growing market demand.</li>
</ul>


AMD's market share in the desktop CPU segment has surged to 30%, driven by strong Ryzen sales and innovative product releases, challenging Intel's longstanding dominance in this space.
Intel's revenue in the data centre segment fell 20% year-over-year, reflecting challenges in product delays and increasing competition from AMD's EPYC processors, impacting overall growth potential.
Both companies have ramped up AI-related investments, with AMD committing $1.5 billion and Intel investing $3 billion in AI technology development, aiming to capitalize on the growing market demand.


AMD Strengthens CPU Market Position as Intel Faces Challenges in Data Center Growth

<ul>
<li>The acquisition positions AMD to capitalize on the booming AI infrastructure market, which is expected to grow to $372.9 billion by 2029, leveraging ZT Systems' hyperscale computing and integration capabilities.  </li>
<li>AMD will use ZT Systems' experience in AI infrastructure deployment for cloud providers like AWS and Azure, helping it compete with NVIDIA’s 70% market share and Intel's data center push.</li>
<li>Analysts expect the acquisition to be financially accretive by 2025, with ZT Systems enabling AMD to provide comprehensive AI solutions, boosting its presence in the cloud, AI, and enterprise sectors.</li>
</ul>


The acquisition positions AMD to capitalize on the booming AI infrastructure market, which is expected to grow to $372.9 billion by 2029, leveraging ZT Systems' hyperscale computing and integration capabilities.  
AMD will use ZT Systems' experience in AI infrastructure deployment for cloud providers like AWS and Azure, helping it compete with NVIDIA’s 70% market share and Intel's data center push.
Analysts expect the acquisition to be financially accretive by 2025, with ZT Systems enabling AMD to provide comprehensive AI solutions, boosting its presence in the cloud, AI, and enterprise sectors.


AMD Acquires ZT Systems for $4.9B, Challenging NVIDIA in the AI Infrastructure Market

United States

Advanced Micro Devices, Inc. (AMD) produces semiconductor products and devices. The Company offers products such as microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products and supplies it to third-party foundries, as well as provides assembling, testing, and packaging services. AMD serves customers worldwide.

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Advanced Micro Devices (AMD US)

AMD 3Q24: The Stock Is Down 8% Afterhours. We See Concerns in the Wrong Place, a Buying Opportunity

The stock is down sharply after hours but concerns are misplaced in our view. AMD competitive GPU is only available from 1Q25. We expect AMD to...

Nicolas Baratte

Inside AMD’s Bold Play for the AI and Data Center Crown – Is Nvidia at Risk?"

Advanced Micro Devices (AMD) reported another quarter of robust performance for Q3 2024, indicating a strong trajectory in key segments, notably...

Baptista Research

AMD Q324. Now Trading At Early 2022 Levels, Prior To The DC GPU Goldmine..

Q324 revenue $6.8 billion, +17% QoQ, +18% YoY. Q424 forecast $7.5 billion, +10% QoQ, +22% YoY. Share fall 8% after hours, now trading back at early...

William Keating

AMD Strengthens CPU Market Position as Intel Faces Challenges in Data Center Growth

AMD's Ryzen success bolsters its CPU standing, while Intel sees a decline in data center revenues. Both companies ramp up AI investments to secure...

Mint Finance

AMD Acquires ZT Systems for $4.9B, Challenging NVIDIA in the AI Infrastructure Market

AMD's $4.9B acquisition of ZT Systems boosts its AI infrastructure capabilities challenging NVIDIA. ZT’s expertise in hyperscale solutions...

Mint Finance

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