AMD - Advanced Micro Devices, Inc.
| Previous Close | 27.89 |
| Open | 27.54 |
| Bid | 26.38 x 800 |
| Ask | 26.39 x 800 |
| Day's Range | 26.33 - 27.75 |
| 52 Week Range | 9.04 - 34.14 |
| Volume | 112,467,775 |
| Avg. Volume | 85,710,726 |
| Market Cap | 26.51B |
| Beta (3Y Monthly) | 4.09 |
| PE Ratio (TTM) | 82.41 |
| EPS (TTM) | 0.32 |
| Earnings Date | Apr 23, 2019 - Apr 29, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | 1995-04-27 |
| 1y Target Est | 24.86 |
- InvestorPlace•2 days ago
Google’s Gaming Platform Is Not a Reason to Buy AMD Stock
Given the 10% gain AMD (NASDAQ:AMD) logged on Tuesday, many investors are optimistic about the latest news. But I don't personally believe the company's role in a new streaming-game platform developed by Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is a reason to buy AMD stock.Source: Matthew Rutledge via Flickr Some investors will disagree with me -- although most of those investors will tout AMD optimism for any and all reasons. Advanced Micro Devices stock has been terribly rewarding since turning around in 2016. Traders have largely convinced themselves the foreseeable future is going to look a lot like the past. A closer, critical look at the new video game service from Google, however, reveals AMD's role is the least important one in a platform that may or may not be a smashing success. It's ComplicatedHardcore gamers may understand the implications better than the average non-gamer, but for the rest of us: Even as Microsoft's (NASDAQ:MSFT) Xbox or Sony (NYSE:SNE) Playstation move toward downloaded games and away from physical discs, their games are played -- and processed -- on the consoles themselves. Meanwhile, on Google's Stadia, games will be played entirely from Google's servers using a high-speed internet connection.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Retail Stocks That Will Continue to Rebound in 2019 AMD's role in the new service? It handles the heavy-duty graphics processing from the cloud, rather than offloading that work onto a graphics card that would normally be installed on a console.See, with Stadia, there is no physical console. The cloud is the console, meaning its games can be reasonably played on any device.It's actually a rather savvy and gutsy move from Alphabet. Microsoft can create a complete, self-contained gaming experience on an Xbox. Ditto for Sony. Not so with Stadia though. While it can handle most aspects of game-play, Google and AMD are still ultimately relying on the speed and quality of the internet connection its gamer customers subscribe to.Surprisingly, it's not been a problem yet. Initial tests of the service's latency -- or the lag between pushing a button on a controller and seeing the result on a screen -- suggest Google has figured out how to make the Stadia experience almost as good as that of console game-play. Google, meanwhile, has developed a custom game-controller to further abate potential latency.There's a rub for current and would-be owners of AMD stock, however. Of all the major hurdles that Stadia has to clear to work well, Advanced Micro Devices' is the easiest.It would also be the easiest piece of the puzzle to replace. Are Google's Plans Too Expensive?That's not to say AMD could be replaced by a rival like Nvidia (NASDAQ:NVDA) or Intel (NASDAQ:INTC) with just the flip of a switch.The architecture powering Stadia is based on AMD's Radeon GPU, but customized to meet Google's specific needs. Each card is capable of handling up to 10.7 teraflops of data at a time, handily topping the graphics-processing loads being handled by even the newest consoles like the PS4 Pro and the Xbox One X.The end result? Stadia will be able to deliver 4K quality at the 60 frames per second most gamers expect from high-end games. When the time comes, Google promises 8K quality and 120 frames per second.AMD's GPU prowess may not matter, however, for a handful of reasons.One of them is the aforementioned lag, or latency, of an internet connection. Connections as fast as 50 or even 100 megabits per second are quickly becoming the new norm, and the advent of 5G promises even wider access to ultra-high speed connectivity. Still, for streaming gaming, that connection has to be consistent, and free of any glitch.There's also the not-so-small matter that to deliver 4K, 1080p 60FPS images that can accept and process constant user input (button-mashing), Google will have to establish 7500 edge-nodes all over the world. And, it appears that to achieve the maximum quality of graphical display, multiple GPUs will be needed per one single player. The company's gaming data centers will, most likely, 'share' graphics cards simultaneously with multiple gamers, but even the best GPUs can only do so much at one time.That makes the hardware and node-management needed to make Stadia work an expensive proposition, which in turn could make Stadia an expensive service to utilize.To that end, there comes a point when gamers stop needing 'more' visual realism to enjoy a game to its fullest. Prepping for an 8K, 120 FPS future is arguably an expensive overkill. So if they're looking to cut costs, Google might opt for a cheaper alternative to AMD's superior GPUs.And of course there's the X-factor: Can Google get developers on board with yet another platform that facilitates even more competition? Bottom Line for AMD StockBuy AMD stock, or don't buy it. There's a bearish and bullish case to be made. Neither of those cases, however, are significantly altered by the advent of Stadia.And, even to the extent Stadia does gain traction when launched, a couple of pros point out the prospect should have already been built into the price of AMD stock. * 7 Beaten-Up Stocks to Buy as They Reverse Course "We don't know why AMD was up so much as most analysts knew of this win already," said Susquehanna analyst Chris Rolland, while RBC's Mitch Steves explained "We are surprised by the stock price move as we believed this was a well known win."As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Google's Gaming Platform Is Not a Reason to Buy AMD Stock appeared first on InvestorPlace.
- Market Realist•2 days ago
Why Chip Stocks Continue to Surge
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- Market Realist•2 days ago
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- Zacks•2 days ago
The Zacks Analyst Blog Highlights: Apple, Intel, Advanced Micro, Lenovo and HP
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- Market Realist•2 days ago
What Drove US and South Korean Semiconductor Stocks on March 21?
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- Zacks•2 days ago
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- Zacks•2 days ago
Chipmakers on Fire: 3 Under-the-Radar Stocks to Win
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- InvestorPlace•2 days ago
Don’t Trust the Surprise Rally In Advanced Micro Devices Stock
AMD (NASDAQ:AMD) surged upward in Tuesday trading. The chipmaker will benefit from a partnership with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) as it will power Google's streaming game service. This news sent AMD stock higher by more than 12% in Tuesday's trading session. Still, AMD had already revealed this information, so the surge in the stock has left traders confused.Source: Shutterstock The massive levels of forecasted growth leave little doubt that Advanced Micro Devices remains a solid long-term play. However, such a move on known news and its propensity to move on momentum undermines the short-term case for AMD. The Unexplained Rally in AMD StockAMD stock rallied on reports that Google would use AMD processors to power its Stadia video game streaming service. Such spikes occur periodically on news of a major new customer or business line. However, such moves higher rarely occur on old news.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter Advanced Micro Devices CEO Lisa Su revealed at the CES trade show that Google would use AMD processors. However, she announced that news in January. This has left traders scratching their heads about the delayed reaction.One possible explanation could involve traders finally waking up to the concept of streamed games. The gaming industry brought in $43.4 billion in revenue from the U.S. in 2018, an 18% increase from 2017 levels, so streamed games serve as yet another growth engine.Moreover, several Google peers intend to follow with their own streamed games. Sony (NYSE:SNE) allows streamed games through its PlayStation 4, and Amazon (NASDAQ:AMZN) also plans to enter this market.Furthermore, Microsoft (NASDAQ:MSFT) is developing Project X Cloud, which will allow streamed games through the Xbox. However, Microsoft has relied on Nvidia (NASDAQ:NVDA) graphics chips to power PC-based games, so that does not offer any clear benefit to AMD. Momentum and AMDAnother possibility lies with AMD's propensity for large moves. In April of last year, I recommended AMD stock as the end of the crypto craze pushed AMD toward the $9 per share level.The equity would go on to rally above $34 per share by September before falling near the $16 per share level in December. Since that time, Advanced Micro Devices stock has surged by more than 62%, and Tuesday's move higher added to the momentum.How much further the equity will rally remains unclear, but the possibility of a momentum shift undermines the short-term case for AMD. Furthermore, near-term fundamentals appear elevated.Thanks to the spike on Tuesday, the current price-to-earnings (PE) ratio that has moved above 81. Such a multiple does not stop a stock from moving higher by itself. Still, it does make AMD more vulnerable to bad news.However, the much rosier long-term outlook on AMD makes the equity a buy on any significant pullback. Wall Street predicts 39.1% profit growth for this year and 53.1% in 2020. Analysts expect to see increases in net income which average 31.59% per year over the next five years. With such growth rates, the forward PE of around 41 should not deter investors. The Bottom Line on AMD stockTuesday's surge higher on old news and the equity's tendency for large moves make AMD too unpredictable at these levels. AMD spiked in Tuesday trading after Google reminded traders that its streaming gaming platform would utilize AMD processors.Still, stocks rarely spike because a company reminds traders of news that another company announced two months ago. Perhaps Wall Street better understands the potential for streaming games. The equity's propensity to move on momentum could have also pushed AMD higher.Due to that momentum, the stock has moved higher by more than 60% in less than three months. This makes the near-term direction of AMD stock hard to predict, and I would caution against buying right now. However, considering the long-term prospects for AMD, I would look to buy on any pullback.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Don't Trust the Surprise Rally In Advanced Micro Devices Stock appeared first on InvestorPlace.
Market Realist•2 days agoUS-China Trade Deal Uncertainty Keeps Markets on Edge
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- MarketWatch•3 days ago
AMD CEO Su's pay rose 19% in 2018, two board members not up for re-election
Advanced Micro Devices Inc. said late Thursday that its chief executive got a substantial rise in compensation in 2018 and that two board member are not up for re-election. In a proxy filing with the Securities and Exchange Commission, AMD said that CEO Lisa Su received $13.4 million in compensation in 2018 including her $961,000 base salary, up from $10.9 million in compensation in the previous year. Since Su was appointed CEO in October 2014, AMD shares have soared 965% compared with a 52% gain in the S&P 500 index . In 2018, AMD shares rose 80% as the S&P 500 shed 6%. AMD also said that board members Michael Inglis and Amhed Yahia are not nominated for re-election this year. AMD's annual stockholders' meeting is scheduled for May 15.
- Zacks•3 days ago
Google's Stadia Makes a Mark: Should Gaming Players Take Note?
Alphabet's (GOOGL) Google unveils Stadia, its long-awaited browser-based video game streaming service that leverages cloud computing and YouTube.
- Zacks•3 days ago
Apple Updates Portfolio Prior to Streaming Service Launch
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- Market Realist•3 days ago
Trump’s at It Again: Markets Spooked by Tariff Warning
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- Zacks•3 days ago
Buy Apple (AAPL) Stock Up 22% in 2019 Before Streaming Video Launch?
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- SmarterAnalyst•3 days ago
Advanced Micro Devices (AMD) Stock Has More Room to Shine
This week, investors piled on Advanced Micro Devices’ (AMD) stock to take advantage of the bullish announcement that Google’s new Stadia platform would be powered by AMD GPUs. The relationship provides a big boost to AMD’s data center business, as shares shot up 17% since the news broke. Based on its Vega architecture, the custom-made AMD GPUs will provide more than 2x faster raw computing power than the PlayStation 4 Pro, and nearly double that of the Xbox One X. Rosenblatt analyst Hans Mosesmann believes the stock has more room to run as he maintains a Buy rating on AMD, with a $42 price target, which implies over 50% from current levels. (To watch Mosesmann's track record, click here)Mosesmann says the “conventional view…[is] that AMD is incapable of gaining key chip socket wins or share in CPU or GPU market segments.” So while some may question how a “less competitive AMD” was able to capture Google, Mosesmann says “Google…[is] not choosing AMD 7nm GPUs b/c they are less competitive, they are doing so because they are more competitive.” AMD is showing promise moving towards its new 7nm launch, while rivals are lagging behind with larger chips. Mosesmann says by moving from “16nm GPUs last year…[to] 7nm,” AMD is becoming “more competitive vs. Nvidia GPUs that are still at 16/12nm in 2019.” With that, the analyst believes “AMD is not less competitive; the GPU lineup is more competitive, obviously.” Another myth Mosesmann wants to debunk is the notion the “the future of accelerated compute is all about GPU’s only.” If this were the case, the analyst argues Nvidia would “clearly” have the advantage. But Mosesmann says, “there are important segments that prize CPU/GPU optimization and Nvidia simply does not have a server-class CPU strategy. It is not a random event that AMD controls the game console silicon (CPU/GPU) at Sony and Microsoft and it suggests strongly that AMD should play a significant role in cloud streaming gaming (console in the cloud).”The bottom line, in Mosesmann’s view, is that “the AMD story just got an injection of GPU gaming/compute juice that the street may not have anticipated yesterday,” which explains such a surge in trading. The analyst likes the “CPU share gain dynamic for AMD with 7nm CPU disruption starting in 3Q19, and an interesting and emerging GPU compute/gaming share gain dynamic that is in the billions of dollars in terms of TAM opportunity.” Though AMD shares plummeted nearly 50% at the end of 2018, the stock is back up over 50% from its 2018-low. TipRanks analysis of 20 analyst ratings on AMD shows a consensus Moderate Buy, with ten recommending Buy, nine recommending Hold and one saying Sell. The price target among these analysts stand at $26.06, suggesting the stock has limited upside from current levels. (See AMD's price targets and analyst ratings on TipRanks) More recent articles from Smarter Analyst: * Will New Streaming Service Propel Apple (AAPL) Stock to New Heights? * Analyst Commends Cannabis Stock Aurora (ACB) for Peltz Pick * This Cannabis Stock Just Got a Huge Vote of Confidence * Apple's (AAPL) Streaming Video Buzz: Should You Buy the Hype?
- Market Realist•3 days ago
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- TheStreet.com•4 days ago
Winners and Losers From Alphabet's Gaming Effort
As such, it's time to separate the potential winners from the likely losers from Alphabet's latest moonshot. Alphabet announced during Tuesday's Game Developer Conference that it will utilize AMD GPU for the new cloud-based gaming platform citing the strong relationship between the two companies. "We've worked closely with AMD for years on this project, leading to the development of a custom GPU with leading-edge features and performance for Google Stadia," said Google's head of Stadia development Dov Zimring.
- TheStreet.com•4 days ago
Stocks End Day Mixed After Fed Leaves Interest Rates Unchanged
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- MarketWatch•4 days ago
AMD’s stock moves into risky territory on Google gaming hype
Alphabet’s Google (GOOG)(GOOGL) has announced a cloud-based gaming service called Stadia. Stadia is meant to be the Netflix (NFLX) of gaming. • The chart shows there is a strong move in AMD’s stock on the announcement that Stadia will use a custom AMD chip.
- Market Realist•4 days ago
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- SmarterAnalyst•4 days ago
There’s a Lot to Like About AMD Stock, But Don’t Buy Into the Google Hype
Advanced Micro Devices (AMD) jumped substantially on Tuesday’s trading session, as an un-expected customer, Alphabet (GOOG) is expected to purchase a lot of GPUs from AMD in anticipation of its launch for its video game streaming platform called “Stadia,” which they announced yesterday.Now, historically AMD has held onto a dominant position in the mainstream console gaming segment ever since the launch of Jaguar (chip codename family) for both the Xbox One and PlayStation 4 platform. Hence, the volume segment of the gaming market (where most people play games) is pretty much owned by AMD, and Nvidia has shifted to PC performance gaming, datacenter algorithms, and AI (mainly autonomous vehicles).It seems Google is leveraging its entire OS and Web Ecosystem to deploy a new product or service, which establishes a new gaming platform. The challenges with this model are numerous, because at best it helps establish a new market opportunity, but really, only on the condition that the streaming platform grows to a significant installed base of active users, which is difficult to anticipate.Historically, Google wasn’t a video gaming company, but in recent years they have moved into the gaming segment slowly, but mostly because of the lucrative mobile gaming opportunity across its Android Installed base, whereby it usually collects its tollbooth like fees for mobile game purchases and in-game purchases as well. In this very specific case, the mobile gaming business has matured, and it’s probably why Alphabet entered into the high-end gaming segment.There are some challenges to Stadia in the near-term, as the game catalogue and the costs of running the hardware becomes ambiguous. How much do subscribers have to pay for both the streaming and video game titles? A lot of money goes into the development of AAA game titles (this isn’t mobile game development), so with costs hovering in the hundreds of millions for game production, it’s not as easy to develop a bulk-content-subscription model like Netflix does for movies and TV shows and Spotify for music artists. The video game is the product, and it’s hard to recoup the cost of development absent of a definitive license model.Most of the major game publishers report sales in terms of digital downloads or physical disc purchases, and they’ve been able to retain this pricing structure whereas movie studios are more dependent on movie ticket sales than ever before (mainly because movie licensing deals to streaming companies aren’t as lucrative).So, the biggest uphill challenge for Google’s streaming platform comes from the difficulty of getting buy-in from game publishers that have aged gaming franchises that people would actually play. Now, when gamers joke about the evil greed of Electronic Arts (EA) and Activision Blizzard (ATVI), they’re not lying. Electronic Arts is moving to own more of its distribution, and the same could be said for Activision Blizzard.It’s likely that gamers would have to pay a subscription for Stadia, and then buy games separately from an online store. This doesn’t necessarily score the same mainstream opportunity as Netflix, as the cost of content licenses and hosting movies on servers is a lot less than trying to rent computing hardware from the cloud to run compute intensive games, and then charge gamers for games separately.In this case, most customers are wedded to their respective gaming consoles and have already bought games, so with the implicit investment into hardware and games, why would they migrate to a separate platform and pay subscription fees for renting cloud hardware and buy games when they can stick with Xbox Live or PlayStation Network? It could be an overlapping opportunity, but right now, the silver lining isn’t quite clear.How does this translate for AMD? A major datacenter customer, i.e. Google moved the stock significantly yesterday. Since Google buys much of its hardware from Intel and Nvidia it does score some points for AMD. But, in terms of financial impact, it’s not likely that the current gaming ecosystem would ditch the pre-existing gaming platforms for a new service with a limited game library.It’s a very entrenched segment of the market. AMD investors should anticipate Sony and Microsoft to make major announcements in 2019 and 2020 for PlayStation 5 and Xbox 2 (or whatever it’s named).The next generation consoles will likely run on AMD hardware anyway, and the incremental opportunities with Stadia could mature into something more meaningful by 2025 to 2035, but not in an immediate timeframe that would be very incremental to earnings or sales.Furthermore, Stadia was barely announced yesterday (with launch expected sometime in 2019). To build-up an established gaming franchise that would actually demand the purchase of AMD GPUs at scale in a Google datacenter could take many years. It’s good that AMD won the contract, as it provides an added hedge in the event enthusiast gaming does migrate to streaming, but it certainly won’t happen overnight.There’s plenty to like about AMD the stock as an investor, but the news yesterday was mostly incremental and won’t impact sales or earnings by much in a 12-month or 24-month window. More recent articles from Smarter Analyst: * Will New Streaming Service Propel Apple (AAPL) Stock to New Heights? * Analyst Commends Cannabis Stock Aurora (ACB) for Peltz Pick * This Cannabis Stock Just Got a Huge Vote of Confidence * Apple's (AAPL) Streaming Video Buzz: Should You Buy the Hype?
- Zacks•4 days ago
NVIDIA Ray-Tracing Technology Rides on Adoption, Shares Rise
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- Market Realist•4 days ago
Why Chip Stocks Have Outperformed Lately
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