Investment Rating - The report assigns a "Buy" rating for Advanced Micro Devices (AMD US) [5][11][16] Core Insights - The report indicates that while the data center business revenue fell short of expectations, the stock remains attractive. The target price has been adjusted down to 141,reflectingapotentialupsideof25.9112.01 [5][11][16] - The company reported 4Q24 revenue of 7.658billion,exceedingboththereport′sandmarket′sexpectationsof7.5 billion. The adjusted EPS for 4Q24 was 1.09,aligningwithexpectations[5][6]−Managementguidancefor1Q25revenueissetat7.1 billion, which is consistent with market expectations. The company anticipates strong double-digit growth for the full year of 2025 [5][6] Financial Overview - Revenue projections for AMD are as follows: - 2023: 22.68billion−2024:25.785 billion - 2025E: 31.433billion−2026E:38.368 billion - 2027E: 40.651billion−Year−over−yeargrowthratesareprojectedat−3.94.302 billion - 2024: 5.420billion−2025E:7.477 billion - 2026E: 9.975billion−2027E:13.126 billion - The report highlights a decrease in the expected EPS for 2025 from 4.94to4.55, reflecting an adjustment of -8% [4][5][6] Market Performance - AMD's stock has seen a year-to-date change of -7.27% and has a market capitalization of approximately 181.77billion[3][4]−Thestock′s52−weekhighwas211.38, while the low was 112.01[3][4]ProductandBusinessInsights−Thereportnotesthatthedatacenterrevenuefor4Q24was3.9 billion, slightly below the expected 4.1billion.However,managementexpectsdatacenterGPUrevenuetoexceed5 billion for the full year of 2024 [5][6] - The MI325 product has been shipped to customers, and there is strong enthusiasm for the upcoming MI350 product, which is expected to launch earlier than initially planned [5][6] - The report emphasizes AMD's leadership in Chiplet technology, which may enhance product diversity and flexibility compared to competitors [5][6]
