Advanced Micro Devices, Inc. (Nasdaq: AMD)

For more than 50 years Advanced Micro Devices, Inc. (Nasdaq: AMD) has driven innovation in high-performance computing, graphics and visualization technologies ― the building blocks for gaming, immersive platforms and the data center.

Hundreds of millions of consumers, leading Fortune 500 businesses and cutting-edge scientific research facilities around the world rely on AMD technology daily to improve how they live, work and play.

The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles. 

Just recently, Northland Capital Markets analyst Gus Richard noted that AMD shares have fallen roughly in half from their November peak, and a key valuation metric has come down as well. The stock currently trades at 16 times estimates for 2023, compared with 32 times 2023 estimates as of the beginning of this year.

“We believe macro headwinds are now in our estimates and the share price,” he wrote.

Richard now expects that AMD’s revenue from PC CPUs will fall 6% next year, while GPY revenue could drop 7%. “AMD in servers CPUs is at the top of the stack next year we believe AMD will see little impact on this business in CY23,” he added.