Some updates on Advanced Micro Devices Inc. (AMD):
AMD’s share price actually has down about 16% since the Q2 ER despite all the positive news so far this year. It is one of the most shorted stocks in the semiconductor space. It’s been a volatile stock historically as well. Before you decide to invest in AMD, please make sure your heart is ready for a roller coaster ride in the short term. It is going to be pretty volatile for some time since short interest is still extremely high at the moment. On a brighter side, AMD is continue its aggression on the market. New CPUs and GPUs lines are expected to hit the market during the rest of the year. Moreover, it has made some positive announcements with teaming up with various clients this year. Last week, AMD announced the collaboration with Amazon on use of AMD’s GPUs in their cloud computing platform. Prior to this, Baidu and Alibaba have also joined force with AMD to use its GPUs in their data centers earlier this year. Tencent and JD.come also welcomed AMD’s EPYC family CPUs last month. You may not see the result in the near term. We do expect to see increased revenue to come in 2018 and on. Overall, AMD is not yet a profitable company in the short term. It actually did a great job on reducing its debt from $20B to $14B in just a year. We are expecting AMD to continue with its debt reduction in coming years and We are liking the fundamentals of the company. I am bullish on AMD in the long run still.
P.S. We have added our positions in AMD recently.