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A Few Key Takeaways From AMD's Biannual Analyst Meeting

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A Few Key Takeaways From AMD's Biannual Analyst Meeting

Advanced Micro Devices, Inc. (NASDAQ: AMD) saw its stock soar higher Tuesday by more than 10 percent, but erased most of these gains by Wednesday afternoon.

AMD hosted an analyst day presentation and expectations among the Street were high. Once all was said and done some analysts were left less-than-impressed.

Remain On The Sidelines

Ross Seymore of Deutsche Bank maintained a Hold rating on AMD's stock with an unchanged $10 price target after the company's presentation failed to debunk his widely-held thesis concerning the competitive landscape.

Seymore did acknowledge that AMD has seen progress over the past few years through its wide array of new product launches, most recently Ryzen and Vega. While the analyst is "encouraged" by the product launches and willingness to invest in a long-term game plan, the fact remains that the "competitive response from Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA) "is always a risk."

Given the ongoing competitive threats, the analyst believes AMD's earnings per share and margins growth are "significantly more difficult" to achieve.

Seymore also touched on AMD's 2017 and 2018 financial targets and stated they're "realistic" but already in-line with what he had previously estimated.

Bottom line, the analyst sees AMD's stock as trading at a "relatively full" valuation and even at a higher price to earnings multiple than the broader semiconductor industry to reflect the company's return to profitability.

See Also:

Marc Chaikin's Bullish Thesis On 3 Small-Cap Tech Stocks

Intel Has Reportedly Ditched Nvidia For Advanced Micro Devices

Latest Ratings for AMD

DateFirmActionFromTo
Jul 2020JP MorganMaintainsNeutral
Jul 2020Piper SandlerMaintainsOverweight
Jul 2020UBSMaintainsNeutral

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