News AMD's announces it has orders for $3.5 billion of its AI GPUs, but the stock tumbled in after-hours trading

[Admin]

AMD expects declines in datacenter and client revenue in Q1, but projects improvements for the whole 2024.

AMD's announces it has orders for $3.5 billion of its AI GPUs, but the stock tumbled in after-hours trading : Read more

 

[umeng2002_2]

The old, "high on cocaine stock analyst doesn't think you're making enough money" strikes again.

 

[HaninTH]

The old, "high on cocaine stock analyst doesn't think you're making enough money" strikes again.

Those "ladies of the night" aren't paying themselves!

 

[TerryLaze]

The old, "high on cocaine stock analyst doesn't think you're making enough money" strikes again.

They made 2% money last year, you don't have to be high on cocaine to realize that that's not much.

 

[StuWiFi6DDR5]

The old, "high on cocaine stock analyst doesn't think you're making enough money" strikes again.

These are the same stock brokers, who said Tesla, won't increase it's car production 5 years ago, that solar will grow slowly. With artificial intelligence, driving a revolution, AMD, is a pretty solid bet, in the high end and desktop, I got 64GB of DDR 5, a TB of PCIe4, for my rig, the motherboard was only $A129, RAM 200, flash 100, it's so cheap, to go high. I've already ran AI, on earlier rigs.

 

[Jimbojan]

AMD has little earnings, according to its financial statement, its assets value increased only by $260M in last quarter, which is far less than its GAAP earnings 44c ($420M), yet its share price is in the 180s; while Intel is making higher earnings, share price is in the 40s. AMD's revenue and earnings are in the decline, there is no prospect to increase as Intel is at least one step ahead of AMD in design and product. Those who predict AMD has high value is in the delusion at best. I am sorry.

 

[Alvar "Miles" Udell]

It tumbled because tech stocks are getting obliterated this week on horrid earnings, and because at current prices AMD is trading at something Iike 50 PE. Intel, Google, Microsoft, AMD, and more have felt the bite this week, with Nvidia avoiding the worst and only dropping 3% since yesterday, and the fact is its going to make zero difference on the price consumers pay for their products.

 

[TJ Hooker]

Intel is making higher earnings, share price is in the 40s. AMD's revenue and earnings are in the decline

AMD's latest quarterly results showed higher revenue and net income both y/y and q/q. If you're looking at yearly reporting, AMD did indeed decline, but so did Intel (with a significantly larger % decrease than AMD).

Also, comparing share price doesn't make any sense, look at market cap if you want to compare how investors value the two companies.

 

[Neilbob]

AMD's latest quarterly results showed higher revenue and net income both y/y and q/q. If you're looking at yearly reporting, AMD did indeed decline, but so did Intel (with a significantly larger % decrease than AMD).

Also, comparing share price doesn't make any sense, look at market cap if you want to compare how investors value the two companies.

I've come to the conclusion that's it's a waste of time debating with One-Note, One-Track-Mind Jimbojan who smacks of some unholy combination of an Intel Stockholder and Fanboy. There are others who linger around, but none quite so extreme.

Every time a subject like this one comes along, there's a post about the same stuff, how Intel is advancing at a higher rate technologically, has intimate knowledge about the inner workings of products that won't release for a year or more, is more efficient despite evidence to the contrary, thinks that higher earnings must mean Intel are automatically better and AMD are doomed because reasons.

And I never seem to see any kind of rebuttal to any criticisms, so could easily be a low-effort troll.

But I'll aim this at Jimbojan one more time just in case:
Competition is a good thing. Stop wishing for the demise of a competitive marketplace.

 

[Notton]

Speaking of rocky finances, Intel's GPU endeavor appears to be bleeding Intel dry. They have a real chance at bankruptcy, if they keep trying to push their GPUs at cost.

 

[Blackink]

let's see if the $160-$167 support range holds up or if it breaks below that. That $167-ish area is a major support area from 2021.

 

[Alvar "Miles" Udell]

Speaking of rocky finances, Intel's GPU endeavor appears to be bleeding Intel dry. They have a real chance at bankruptcy, if they keep trying to push their GPUs at cost.

Their total assets exceed their liabilities by over 100%, so I'm not sure where you're getting that from.

 

[umeng2002_2]

If an analyst says that you need to make 5 billion in profit in a quarter, and you only make 4 billion profit. Oh, no the sky is falling. I can understand if a company losing money, then you would want to sell the stock.

 

[rluker5]

Competition is a good thing. Stop wishing for the demise of a competitive marketplace.

Somebody being in favor of one company is no less competitive than someone being in favor of a different company. That's like saying football will die if the 49ers win a game.
In a relatively less competitive time - bulldozer era, there were still plenty of AMD CPU fans and still some competition.

I just wonder where AMD is going to get all of these AI GPUs made if Nvidia has already tapped out TSMC and is turning to Intel for more capacity. AMD frequently seems to be production capacity restrained. Maybe Intel could do their packaging, but I haven't heard of a deal on that yet and you think it would be news worthy.

 

[TerryLaze]

I just wonder where AMD is going to get all of these AI GPUs made if Nvidia has already tapped out TSMC and is turning to Intel for more capacity. AMD frequently seems to be production capacity restrained. Maybe Intel could do their packaging, but I haven't heard of a deal on that yet and you think it would be news worthy.

That would need AMD to have enough money to pay two different chip makers...
According to their quarterly reports they are barely making any money as it is so it's pretty doubtful that they would be able to come up with the money.

Keep things in perspective and don't just assume that I'm bad-mouthing amd, you need to reserve and pay for a decent amount of units to make it worthwhile to make a batch of anything and that takes a lot of money.

 

[TJ Hooker]

That would need AMD to have enough money to pay two different chip makers...
According to their quarterly reports they are barely making any money as it is so it's pretty doubtful that they would be able to come up with the money.

Keep things in perspective and don't just assume that I'm bad-mouthing amd, you need to reserve and pay for a decent amount of units to make it worthwhile to make a batch of anything and that takes a lot of money.

They had a net profit of $667M last quarter, it's not like they're struggling to keep the lights on. And they could borrow money if it was going to help them make more money in the future (i.e. by enabling more sales), even they they didn't currently have (significant) income and borrowing would mean having negative income in the short term. Companies have negative quarters all the time. As long as they have a clear path back to profitability it's not generally an issue.

 

[Neilbob]

Somebody being in favor of one company is no less competitive than someone being in favor of a different company. That's like saying football will die if the 49ers win a game.
In a relatively less competitive time - bulldozer era, there were still plenty of AMD CPU fans and still some competition.

Oh, I assure you I agree completely. But I'd gently nudge you to look at the comment history of some people. The laser-focus on a singular company is at times absurdly myopic. As far as Jimbo so often seems to imply, going by the comments, is that AMD are on the path to destruction and that is a cause to whip out the bunting.

And that's without getting into the outright incorrect statements.

As for AMD and their finances, they are at least stable even if total profit is low from time to time. That's a lot more than could be said about 7 years ago.

 

[TerryLaze]

They had a net profit of $667M last quarter, it's not like they're struggling to keep the lights on. And they could borrow money if it was going to help them make more money in the future (i.e. by enabling more sales), even they they didn't currently have (significant) income and borrowing would mean having negative income in the short term. Companies have negative quarters all the time. As long as they have a clear path back to profitability it's not generally an issue.

Yeah and for the full year it was, 854 so they made almost all of their money in the last quarter.
Is that enough money to order and put together and distribute a large enough batch for it to be worth it?! That's what I'm asking.
Is the risk of losing a the yearly budget worth it?

Borrowing would be crazy especially with the GPU, and many other markets, going up and down wildly.
They do not want to get stuck with a big batch of GPUs during a low market.

 

[TJ Hooker]

Yeah and for the full year it was, 854 so they made almost all of their money in the last quarter.
Is that enough money to order and put together and distribute a large enough batch for it to be worth it?! That's what I'm asking.
Is the risk of losing a the yearly budget worth it?

Borrowing would be crazy especially with the GPU, and many other markets, going up and down wildly.
They do not want to get stuck with a big batch of GPUs during a low market.

Oh, I have no idea if it would make sense for them. Presumably not, given that they haven't done so. But if it did (e.g. if the previous commenter was right about them being consistently supply limited, such that they're essentially leaving money on the table due to production shortfall), I doubt they're being held back simply by lack of cash on hand.