What Happens To AMD’s Valuation If Embedded & Semicustom Revenue Declines To $2 Billion In 2016?

+43.64%
Upside
112
Market
160
Trefis
AMD: Advanced Micro Devices logo
AMD
Advanced Micro Devices

We estimate AMD’s Embedded and Semicustom revenue will increase marginally (~5%), to $2.2 billion, in 2016. If revenue from the division decline by 5% instead, then our valuation for the company will decline by more than 20%. Factors that can lead to lower revenue from the division this year –

>> Delay in generating revenue from new semicustom deals

>> Decline in unit price of game consoles, which result in lower revenue for AMD

Relevant Articles
  1. What’s New With AMD Stock?
  2. Why AMD Stock Declined 11% Over The Past Week?
  3. Is AMD The Better Bet Versus Nvidia?
  4. Guidance Misses, But AMD Delivers Where It Counts
  5. Will AI Surge Drive A Q3 Beat For AMD Stock?
  6. How AMD Stock Can Double To Over $300

AMD 10

AMD 10a

Have more questions about AMD (NYSE:AMD)? See the links below:

>> Embedded & Semi-Custom, PC and Server Processors & Graphics: What’s AMD’s Revenue and EBITDA Breakdown?

>> By What Percentage Did AMD’s Revenue & EBITDA Grow In The Last 3 Years?

>> How Has AMD’s Revenue And EBITDA Composition Changed Between 2012 And 2015?

>> AMD’s Revenue & EBITDA Growth in The Next 5 Years: Trefis Estimate

>> AMD’s Potential Valuation In 2020

>> How Much Revenue Can AMD Earn From Its Server Business BY 2020?

>> How Much Revenue Can AMD Add By Increasing Its GPU Market Share?: Trefis Estimate

>> How Is AMD’s Revenue & EBITDA Composition Expected To Change In The Future?

>> AMD: The Year 2015 In Review

>> What’s AMD’s Fundamental Value Based On Expected 2016 Results?

>> Where is AMD’s 2016 Revenue Growth Expected To Come From?

>> How Important Is the PC Market For AMD’s Business?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for AMD

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology