What's quite interesting (someone please correct me if i'm wrong, I find the financial results and analysis tosh a little hard to read) that AMDs total debt is still decreasing and is now down as low as $313mil down from $488mil YoY and in comparison to March 2019 they had ~$1 billion of debt.

In 2 years, AMD has managed to write off over three quarters of their debt which was the big thing that people were always poking AMD about was how much debt they were in and still had.

It's interesting that they've slowed down how much debt they're writing off or they have written off the previous debt and are maintaining a level perhaps?

Tabbykatze
What's quite interesting (someone please correct me if i'm wrong, I find the financial results and analysis tosh a little hard to read) that AMDs total debt is still decreasing and is now down as low as $313mil down from $488mil YoY and in comparison to March 2019 they had ~$1 billion of debt.

In 2 years, AMD has managed to write off over three quarters of their debt which was the big thing that people were always poking AMD about was how much debt they were in and still had.

It's interesting that they've slowed down how much debt they're writing off or they have written off the previous debt and are maintaining a level perhaps?

Debt is only bad if your revenue and profits aren't good enough to offset it. Debt has a ton of uses so they're probably at a point where the debt benefits are better than having no debt

It's probably longterm debt at low interest. However,AMD now owns Xilinx,so technically they have used their shares to finance a $35 billion purchase. So AMD will be under more pressure to make a return on all those new AMD shareholders. So expect prices to have to go up even more to enable them to expand their margins.

CAT-THE-FIFTH
It's probably longterm debt at low interest. However,AMD now owns Xilinx,so technically they have used their shares to finance a $35 billion purchase. So AMD will be under more pressure to make a return on all those new AMD shareholders. So expect prices to have to go up even more to enable them to expand their margins.

Wallstreet and their obsession with margins.
Profit = volume by margin, but volume constantly gets ignored.
Obviously capacity matters, but AMD are currently leaving a lot of revenue on the table since they have nothing under £100.

when Intel managers in a meeting see the $3.45B they go “is that our what is it called ahhh Mobieye or something revenue?”

Wall street expects companies to have dept. If you are planning to grow your company then taking on debt enables you to do that as it gives you money to spend to then make more money. You should make more than the debt costed you. Hence having no debt shows no ambition.

Dribble
Wall street expects companies to have dept. If you are planning to grow your company then taking on debt enables you to do that as it gives you money to spend to then make more money. You should make more than the debt costed you. Hence having no debt shows no ambition.

That's good debt, for a long time AMD was in bad debt where their operating debt far outstripped their income.

Tabbykatze
That's good debt, for a long time AMD was in bad debt where their operating debt far outstripped their income.

so did Amazon for over a decade, but now look at em.

ik9000
so did Amazon for over a decade, but now look at em.

Swings and roundabouts!

Tabbykatze
Swings and roundabouts!

books initially IIRC

kompukare

CAT-THE-FIFTH
It's probably longterm debt at low interest. However,AMD now owns Xilinx,so technically they have used their shares to finance a $35 billion purchase. So AMD will be under more pressure to make a return on all those new AMD shareholders. So expect prices to have to go up even more to enable them to expand their margins.

Wallstreet and their obsession with margins.
Profit = volume by margin, but volume constantly gets ignored.
Obviously capacity matters, but AMD are currently leaving a lot of revenue on the table since they have nothing under £100.

With capacity as it is AMD would lose money by releasing low end products. They cannot meet demand for their high margin parts so why waste wafers on cheap low margin parts?

AMD are not stupid, they know how to make a profit. If they get excess capacity you will see a flood of low end cheap parts.

kompukare
Wallstreet and their obsession with margins.
Profit = volume by margin, but volume constantly gets ignored.
Obviously capacity matters, but AMD are currently leaving a lot of revenue on the table since they have nothing under £100.

The issue is that unless they can sort out their capacity,by increasing prices they are giving competitors such as Intel and Nvidia breathing space.They really should have kept some contracts with GF,instead of moving over all the CPU production and GPU production to TSMC. They haven't still learnt from the same mistakes they made during the era of the Athlon 64 when they concentrated more on the higher end,and Intel managed to survive for a few years,and come back strongly. The issue is that its not only just entry level,but also mainstream areas which are starting to come unstuck,even in prebuilt systems,as Intel actually has managed to claw back some sales share. Its why still 80% of all prebuilt PCs and laptops are still Intel,and even when it comes to premium laptops,its still much easier to find stock of Intel equivalents.

Also the Wall Street obssession with margins,is leading to extreme short termism. Its why Japan,Taiwan and South Korea literally have dominated in certain industries destroying companies in Europe and the US,by starting at the bottom,and why some other countries are slowly creeping up. They seem to not understand most of the world is driven by cost,and those who can cater to it will displace the incumbants. The issue is high cost ceilings literally helps indigenous tech development,which is exactly how Japan,South Korea,etc thrived.

Double the revenue and double net income too? NOPE. 550mil…LOL. It is comic the only line left off the charts is the NET INCOME vs. last year…

Meanwhile, Intel pulling down massive NET INCOME. Revenue means nothing if you can't get INCOME from it and when you're SHORT wafers, you don't waste a single one on console socs that make you $10-15 each, you make SERVERS or HEDT stuff, PERIOD. When ONE of those is still left on the shelf THEN and ONLY then do you make a poor man product :)

AMD has to make a choice. Either follow what Dirk said 2011, or keep making peanuts. He said, make kings then make the junk (console crap if you have wafers to spare), and they fired him in 2011 for it. Now facing his words yet again. Either make high MARGIN stuff or piss off. You can't win a multibillion R&D war on console income, well, not until they start selling billions yearly that is! With 20% of the x86 market they should be pulling down 1.5B+ NET INCOME per quarter, forget revenue! When will you start making INCOME? This stock isn't worth 2009 Q4 prices, not with 1/2 the assets, shares outstanding massively up, etc etc. They haven't made a billion+ NET INCOME Q since 2009 Q4, and no last Q doesn't count with a ONE time tax break, which as you can see they're right back at 550mil again when it's gone. Intel made 20B+ NET INCOME (not revenue) for the last 3yrs while AMD was “WINNING”. AMD hasn't had a 1B+ Q yet in those years (again, 1 time tax breaks don't count).

Is this coming out in chinese or what people?
https://www.macrotrends.net/stocks/charts/AMD/amd/net-income
Feel free to look around in all that data vs. 2009ish. It shouldn't take you too long to figure out AMD shouldn't be $10 right now vs. 2009 (you could argue down to $5 easily IMHO). See assets vs. 2009, shares outstanding, income, stock price (pull up some charts for 20yrs, WOW). AMD has to cut consoles to get more wafers for cpu/gpu, but they refuse, so won't do much more damage all of 2021-2023 and is why Intel says domination 2024-2025. Their bean counters must have told them just wait for your time, it will come, no need to do special crap with TSMC for cpu, just buy as many wafers as you can for LARGE TSMC INTEL gpus and repeat for 3yrs to keep AMD/NV net income down. Now you have apple trying to buy more wafers to make macs, NV coming back after samsung fab issues, Intel buying gpu wafers at least at 6nm (surely 5nm next or already being produced now since 6nm already selling for months). I don't see how AMD gets more wafers until 2024ish. Ford just announced they may see 1/2 production cut on cars due to chips! It's only going to get worse and only the rich will be able to afford wafers (not AMD, think Apple, Intel, Qcom, FB/Goog/MSFT/AMZN,etc).

TSMC has a water problem also, which when built (water fab) will be able to handle 1/2 the load from 2019 fab numbers (if those are correct to begin with). It looks like they'd need 2-4 of those to handle 2024 loads? LG just dropped mobile, I'm guessing for much of the same reasons. If you can't get tons of parts, you end up with a whole lineup sitting there collecting dust without cpus/gpus, maybe missing memory etc. You're lucky AMD is still in the 80's, sell or lose it just like 2009. The stock tanked for years after that ONE killer quarter Q4 2009 when they couldn't get anywhere near that again for a decade (and even then with a one time tax break last Q).

If you still believe in the stock, you should be able to make a rational argument against all the data I just pointed out that you can easily look up yourself. I've bought on their hype train many times, but this time it's simply ridiculous if you do ANY math at all on their data from decades. They are priced like they are making 2B NET, still have their assets from 2009, shares outstanding from back then too, etc etc. At some point people look at the bottom line too, and they'll be shocked to see it hasn't grown in ages and the company is basically 1/2 2009 (they had 15B assets back then, shares outstanding DOUBLED etc). This is why I say you can easily make a case for $5 (less really, I'm leaving a lot out). AMD says they're ramping gpus for the next few quarters, but with what wafers? Apple needs more now for macs, NV needs more for gpus (samsung didn't work out to well), Intel coming for gpus and who knows what else, qcom for modems etc. The fight is getting more fierce not less, at least not until 2024. It will take LARGER checks for next years wafers and each year after until 2024 when more come online in a way that will actually change things when 2-3 fabs coming that year, but until then you can't shrink your way to more fast enough and even MORE products are coming with chips.

nobodyspecial
SNIP SNIP.

Feels like you're making the wrong argument to the wrong crowd. We're happy for AMD for bringing competition to Intel, making the space more enticing, and giving consumers more choices and products. Oh and making Intel look like tits is always nice