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2023-07-31

AMD: Strong Read From Intel

David Becker As with any competitor, a quarterly earnings report from a peer can provide great insight into the market. For Advanced Micro Devices (NASDAQ:AMD), the Q2'23 earnings report from Intel (I

AMD: Strong Read From Intel

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{"i18n":{"language":"en_US"},"data":{"magic":2,"id":203845349064880,"tweetId":"203845349064880","gmtCreate":1690773430768,"gmtModify":1690773435181,"author":{"id":3582969710070724,"idStr":"3582969710070724","authorId":3582969710070724,"authorIdStr":"3582969710070724","name":"OO_898","avatar":"https://static.tigerbbs.com/9fb3c360d5d7711641a868a144192fc7","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":4,"crmLevelSwitch":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.03.05","individualDisplayEnabled":0},"individualDisplayBadges":[],"fanSize":59,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body><p>Like</p></body></html>","htmlText":"<html><head></head><body><p>Like</p></body></html>","text":"Like","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/203845349064880","repostId":2355622921,"repostType":2,"repost":{"id":"2355622921","kind":"highlight","pubTimestamp":1690771901,"share":"https://www.laohu8.com/m/news/2355622921?lang=&edition=full","pubTime":"2023-07-31 10:51","market":"us","language":"en","title":"AMD: Strong Read From Intel","url":"https://stock-news.laohu8.com/highlight/detail?id=2355622921","media":"seekingalpha","summary":"David Becker As with any competitor, a quarterly earnings report from a peer can provide great insight into the market. For Advanced Micro Devices (NASDAQ:AMD), the Q2'23 earnings report from Intel (I","content":"<html><head></head><body><h2 id=\"id_2000842170\" style=\"text-align: left;\">Summary</h2><ul><li><p>AMD investors got a strong read from the Intel Q2&#39;23 results posted last week.</p></li><li><p>The chip company could face some near-term data center pressure leading to long-term AI opportunities.</p></li><li><p>AMD stock is cheap at ~20x normalized EPS levels while the AI market provides substantial growth ahead.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3ffc34b2c0b585e1b7c63883d0e1ed36\" tg-width=\"750\" tg-height=\"499\"/></p><p>As with any competitor, a quarterly earnings report from a peer can provide great insight into the market. For <strong>Advanced Micro Devices</strong> (NASDAQ:AMD), the Q2&#39;23 earnings report from <strong>Intel</strong> (INTC) provides great views on the surging demand for AI chips and a rebound in PC demand crucial for AMD. My investment thesis remains ultra Bullish on AMD with the stock still trading down around $112 while other chips companies have rallied to multi-year highs.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f0cda4835bcc74af9fa201094c53b36b\" alt=\"Source: Finviz\" title=\"Source: Finviz\" tg-width=\"1280\" tg-height=\"421\"/><span>Source: Finviz</span></p><h2 id=\"id_4169033520\">PC Rebound</h2><p>The most immediate signal from Intel beating Q2&#39;23 estimates and guiding up for Q3 is the rebound in PC demand. Most importantly, the inventory correction appears over with OEMs no longer digesting chip inventory.</p><p>Back in Q3&#39;22, AMD shocked the market by cutting PC revenue estimates by $1 billion. The company quickly went from $2 billion in quarterly CPU sales for PCs to less than $1 billion.</p><p>Intel still reported Q2 Client Computing revenue was down 12% YoY to $6.8 billion, but the number was up $1.0 billion sequentially. The chip giant guided up Q3 revenue to $13.4 billion, up $0.5 billion sequentially.</p><p>In Q1&#39;23, AMD reported that client revenues had fallen further to only $739 million. AMD CPU revenues are now far over $1 billion per quarter below the peak levels providing substantial upside potential when the PC market normalizes.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/109f09e99e82d6ac37add4ac4b5dc6d9\" alt=\"Source: The Next Platform\" title=\"Source: The Next Platform\" tg-width=\"640\" tg-height=\"361\"/><span>Source: The Next Platform</span></p><h2 id=\"id_2420818419\">AI Rescue</h2><p>Intel discussed a mixed picture for their business in the near term due to AI. The chip giant is seeing a wallet share shift from the sever CPU spend towards AI chips.</p><p>The move is both good and bad for AMD. The company has the MI300 AI GPU chip hitting the market in Q4 providing a strong competitor to the booming demand for the H100 from <strong>Nvidia</strong> (NVDA), but the chip isn&#39;t out on the market yet.</p><p>In the near term, AMD may see some suppressed data center demand while heading into 2024. Ultimately, the company should see upside from AI demand for the MI300 along with the Alveo AI accelerator.</p><p>On the Q2&#39;23 earnings call, Intel CEO Pat Gelsinger suggested the AI pipeline for 2024 had surged to $1 billion:</p><blockquote>In my formal remarks, we said we now have over $1 billion of pipeline, 6x in the last quarter.</blockquote><p>Going back a few months, Morgan Stanley had estimated the AI potential for AMD was only $400 million with upside potential to $1.2 billion. The Intel forecasts would suggest the AI potential for AMD is far higher next year when the MI300 is in full-scale production.</p><p>Nvidia guided up current quarter sales estimates by 50% to over $11 billion. The company suggested data center sales would reach $7+ billion in the quarter.</p><p>AMD has only seen data center sales reach $1.3 billion in quarterly sales leaving a huge gap from Nvidia. Even Intel still hit $4.0 billion in data center sales during Q2&#39;23, though the amount is down nearly 20% form 2022 levels due in part to losing market share to AMD.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/95d55cd9428799a6184e0f88d4b62660\" alt=\"Source: Intel Q2&#39;23 presentation\" title=\"Source: Intel Q2&#39;23 presentation\" tg-width=\"640\" tg-height=\"350\"/><span>Source: Intel Q2&#39;23 presentation</span></p><p>The big issue for AMD is whether data center sales growth stalls causing a miss to 2H sales targets while booming AI demand ultimately boosts sales starting in Q1&#39;24, or maybe Q4. The chip company peaked at quarterly sales of $6.6 billion back Q2&#39;22 and the current quarterly analyst estimates aren&#39;t very aggressive.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5692f64d8a6442b40b11a9c85b043d79\" alt=\"Source: Seeking Alpha\" title=\"Source: Seeking Alpha\" tg-width=\"640\" tg-height=\"225\"/><span>Source: Seeking Alpha</span></p><p>A rebound in PC demand to more normalized levels places AMD back at the Q4&#39;23 revenue target of $6.5 billion alone. A PC rebound to normal digestion ($2 billion quarterly run rate) along with higher data center or AI demand leads to vastly higher revenues in 2024.</p><p>The current analysts aren&#39;t even factoring in much growth in the Q2&#39;24 revenue estimate of $6.76 billion. The amount is just 4% upside from Q2&#39;22 despite potentially surging demand from AMD entering the AI GPU space.</p><p>AMD is set to report earrings after the close on August 1. Investors should focus less on the Q2 numbers or even Q3 guidance and focus more on a return to more normalized revenue levels plus the upside from AI.</p><p>Our view has long held that AMD has the earnings potential of $5 to $6 and the AI opportunity is all upside to this view.</p><h2 id=\"id_2366979529\">Takeaway</h2><p>The key investor takeaway is that AMD is still $50 below all time highs while Nvidia has soared over $100 above the late 2021 highs. Investors should use the current weakness in AMD to load up on the stock while leaving some capital to buy any weakness following Q2 earnings due to the potential for near term disappointment leading to long term opportunities.</p></body></html>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMD: Strong Read From Intel</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; 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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMD: Strong Read From Intel\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-31 10:51 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4621586-amd-strong-read-from-intel><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAMD investors got a strong read from the Intel Q2'23 results posted last week.The chip company could face some near-term data center pressure leading to long-term AI opportunities.AMD stock is ...</p>\n\n<a href=\"https://seekingalpha.com/article/4621586-amd-strong-read-from-intel\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","IE00BFSS7M15.SGD":"Janus Henderson Balanced A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU1267930730.SGD":"富兰克林美国机遇基金AS Acc SGD (CPF)","BK4554":"元宇宙及AR概念","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","BK4585":"ETF&股票定投概念","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4566":"资本集团","AMD":"美国超微公司","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","LU0109392836.USD":"富兰克林科技股A","BK4543":"AI","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU0979878070.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"A\" (USD) ACC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0971096721.USD":"富达环球金融服务 A","BK4581":"高盛持仓","BK4504":"桥水持仓","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0708995401.HKD":"FRANKLIN U.S. OPPORTUNITIES \"A\" (HKD) ACC","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","BK4549":"软银资本持仓","BK4512":"苹果概念","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD"},"source_url":"https://seekingalpha.com/article/4621586-amd-strong-read-from-intel","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"2355622921","content_text":"SummaryAMD investors got a strong read from the Intel Q2'23 results posted last week.The chip company could face some near-term data center pressure leading to long-term AI opportunities.AMD stock is cheap at ~20x normalized EPS levels while the AI market provides substantial growth ahead.As with any competitor, a quarterly earnings report from a peer can provide great insight into the market. For Advanced Micro Devices (NASDAQ:AMD), the Q2'23 earnings report from Intel (INTC) provides great views on the surging demand for AI chips and a rebound in PC demand crucial for AMD. My investment thesis remains ultra Bullish on AMD with the stock still trading down around $112 while other chips companies have rallied to multi-year highs.Source: FinvizPC ReboundThe most immediate signal from Intel beating Q2'23 estimates and guiding up for Q3 is the rebound in PC demand. Most importantly, the inventory correction appears over with OEMs no longer digesting chip inventory.Back in Q3'22, AMD shocked the market by cutting PC revenue estimates by $1 billion. The company quickly went from $2 billion in quarterly CPU sales for PCs to less than $1 billion.Intel still reported Q2 Client Computing revenue was down 12% YoY to $6.8 billion, but the number was up $1.0 billion sequentially. The chip giant guided up Q3 revenue to $13.4 billion, up $0.5 billion sequentially.In Q1'23, AMD reported that client revenues had fallen further to only $739 million. AMD CPU revenues are now far over $1 billion per quarter below the peak levels providing substantial upside potential when the PC market normalizes.Source: The Next PlatformAI RescueIntel discussed a mixed picture for their business in the near term due to AI. The chip giant is seeing a wallet share shift from the sever CPU spend towards AI chips.The move is both good and bad for AMD. The company has the MI300 AI GPU chip hitting the market in Q4 providing a strong competitor to the booming demand for the H100 from Nvidia (NVDA), but the chip isn't out on the market yet.In the near term, AMD may see some suppressed data center demand while heading into 2024. Ultimately, the company should see upside from AI demand for the MI300 along with the Alveo AI accelerator.On the Q2'23 earnings call, Intel CEO Pat Gelsinger suggested the AI pipeline for 2024 had surged to $1 billion:In my formal remarks, we said we now have over $1 billion of pipeline, 6x in the last quarter.Going back a few months, Morgan Stanley had estimated the AI potential for AMD was only $400 million with upside potential to $1.2 billion. The Intel forecasts would suggest the AI potential for AMD is far higher next year when the MI300 is in full-scale production.Nvidia guided up current quarter sales estimates by 50% to over $11 billion. The company suggested data center sales would reach $7+ billion in the quarter.AMD has only seen data center sales reach $1.3 billion in quarterly sales leaving a huge gap from Nvidia. Even Intel still hit $4.0 billion in data center sales during Q2'23, though the amount is down nearly 20% form 2022 levels due in part to losing market share to AMD.Source: Intel Q2'23 presentationThe big issue for AMD is whether data center sales growth stalls causing a miss to 2H sales targets while booming AI demand ultimately boosts sales starting in Q1'24, or maybe Q4. The chip company peaked at quarterly sales of $6.6 billion back Q2'22 and the current quarterly analyst estimates aren't very aggressive.Source: Seeking AlphaA rebound in PC demand to more normalized levels places AMD back at the Q4'23 revenue target of $6.5 billion alone. A PC rebound to normal digestion ($2 billion quarterly run rate) along with higher data center or AI demand leads to vastly higher revenues in 2024.The current analysts aren't even factoring in much growth in the Q2'24 revenue estimate of $6.76 billion. The amount is just 4% upside from Q2'22 despite potentially surging demand from AMD entering the AI GPU space.AMD is set to report earrings after the close on August 1. Investors should focus less on the Q2 numbers or even Q3 guidance and focus more on a return to more normalized revenue levels plus the upside from AI.Our view has long held that AMD has the earnings potential of $5 to $6 and the AI opportunity is all upside to this view.TakeawayThe key investor takeaway is that AMD is still $50 below all time highs while Nvidia has soared over $100 above the late 2021 highs. Investors should use the current weakness in AMD to load up on the stock while leaving some capital to buy any weakness following Q2 earnings due to the potential for near term disappointment leading to long term opportunities.","news_type":1},"isVote":1,"tweetType":1,"viewCount":697,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":4,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}