1/16/2024 0 Comments Tech stock crash![]() Investors may be surprised to see that in spite of the growth in non-GAAP operating income, non-GAAP EPS still declined by nearly 10%. Non-GAAP operating income jumped slightly to $1.3 billion but was still lower than the company's guidance of $2 billion. AMD had previously guided to up to $6.7 billion in revenue - this is a big miss.ĪMD saw GAAP operating margin turn negative, but that was largely due to amortization of assets acquired from Xilinx. The latest quarter saw revenues grow by 29% year over year, but decline by 15% sequentially to $5.6 billion. The stock has fallen 25% since then as the company revealed tangible impact from macro pressures. I last covered AMD in August where I rated the stock a buy on account of the GARP valuations. AMD Stock PriceĪMD stock is down "only" 55% from all-time highs - I say that with "tongue in cheek" because many other tech stocks have fallen far more. ![]() Buy for the growth opportunity and stay for the multiple expansion potential. While AMD is not immune to near term macro headwinds, the long term growth thesis remains intact. AMD has seen its valuation compress to more than reasonable levels, offering investors a compelling buying opportunity. But in this tech crash, no tech stock is spared from the wrath of the markets. The company has reformed its balance sheet, is generating robust GAAP profits, and is an enabler of a great secular growth story in digitization. AMD ( NASDAQ: AMD) wasn't supposed to crash like this.
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