Should You Buy AMD Stock on the Dip?

Advanced small devices (Nasdaq: AMD) It was one of the worst shares you own during the past year. While investors were enthusiastic about AMD, they may take the market share of the market Nafidia In the very important data center market, this was not manifested. Moreover, the rest of the AMD business was somewhat, causing the stock decreased during the past year.

Since its peak last March, the stock fell more than 50 %, while most other stocks on the market have risen. If you have invested in NVIDIA, on the other hand, it will be higher More than 50 %. This is a great incompatibility in performance, but is it possible to run AMD? After all, a 50 % decrease can be a great opportunity to profit from the transformation game.

While Nvidia focuses on one thing, Graphics processing units (graphics processing units)AMD is much broader. She has similar offers for Nvidia's, but it has not launched in the data center market, and AMD continues to constantly NVIDIA in this sector. The thesis last year was that AMD could take its share in the market away from NVIDIA, as the focus in artificial intelligence turned from training to reasoning, but this acquisition was never evident.

In the fourth quarter of AMD (ending on December 28), the data center revenue increased by 69 % year on an annual basis to $ 3.86 billion. Although this looks like a strong performance, it diminishes compared to what NVIDIA did. The NVIDIA Data Center Department has achieved 93 % to 35.6 billion dollars during the fourth fiscal year (ending on January 26) – approximately 10 times AMD.

This part of the AMD investment thesis was clearly wrong, which is a key factor in shares decline. However, other AMD slices did not help much either.

The customer's revenue was one powerful point, as it increased by 58 % on an annual basis. This explains all central processing units and the AMD graphics processing units for laptops and computers purchased by the general consumer. This is still an important market, but there is only a lot of money that must be a pound in a sector that has become somewhat goods, as there is no significant performance in performance from one provider to another.

The rest of the AMD results were bad. Game revenue (GPU for computer games and console games) decreased by 59 % on an annual basis, and integrated processors (foil designed for specific energy -saving purposes) decreased by 13 %.

In general, the growth of AMD revenue increased by 24 % on an annual basis, and this is not bad. However, the expectations were much higher, that is why the stock is very popular with Wall Street at the present time.

AMD got some individual fees once on its books over the past year, so using the price ratio to profits (P/E) does not give investors a lot of insight to the company. Instead, I will use P/e ratio forwardBecause it does not include these graphics for a single time that is difficult to display. In this regard, the AMD evaluation decreased dramatically over the past year.