AMD Financial Analyst Day (Highlights)
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Higgo van BiljonI 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)