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AMD Financial Analyst Day (Highlights)

April 16, 2024
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I am a big fan of AMD. It is a core holding in my portfolio.

AMD had a Analyst Day yesterday, where they presented a few things.

The highlights for me was:

  • Growing TAM (Total Adressable Market)

In 2020, the market size was $79 Billion.

$35B Data Center

$32B PCs

$12B Gaming

 

Today, they estimate the TAM at $135 Billion

$50B Data Center

$40B PCs

$29B Embedded

$16B Gaming

 

Next 5 years Opportunity $300 Billion

$125B Data Center

$50B PCs

$33B Embedded

$37B Gaming

$27B Automotive

$32B Communications

 

  • New Products & Platforms

 

  • Benefits from Xilinx Acquisition

 

  • Long-Term Financial Model

Revenue Growth 20% CAGR Predicted

Gross Margin >57%
Operating Margin = Mid 30s%
FCF Margin >25% 

Operating Expenses 23-24%
 

This is really bullish imo.

 

Overall, I remain bullish on AMD over the long term.

They are an executing powerhouse!

I will be adding to my position systematically over the next year. (Personal Opinion)

 


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