$Advanced Micro Devices(AMD)$ The data center has been the bright spot until now. However, with competition heating up at the same time as companies are slowing spending the trend is unlikely to continue. I suspect a change in investor paradigm in the next quarter or two. Earnings are actually dropping, the current trailing PE of nearly 40 is likely to rise on earnings this quarter rather than fall. Analysts surveyed by Yahoo expect earnings are down around 30% this quarter. If AMD earns $3.50 next year (about what’s expected) coupled with negative growth and outlook, how does this stock end 2023 above $30? Data center chips will become a commodity with multiple players vying to distinguish themselves.
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