AMD's Challenge: Crash in Stocks, Despite Profits • HWzone
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AMD's challenge: stock crash, despite profits

The red chip developer continues its path of success, but it shows that even if everything is not simple, with the collapse of its value, the stock will close to 30, mainly due to the decline in the demand for video cards

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The economic reporting season is again with us, providing interesting and somewhat surprising events, among others also for , Which returned to the path of financial successes and gains after many years of losses and discovers that sometimes not enough "only" to provide profits, at least in the eyes of investors owned by the shares.

The chipmaker introduced a solid third quarter with revenue of 1.653 billion, net income of 102 million and gross margin of 40 percent - all improvements in performance compared to the same period last year.

However, a significant decline in revenue from the graphics processing market as the demand for products for cryptographic coin mining declined, and in particular the forecast for a continuation of the trend in the next quarter, which will lead to a total decrease in the company's revenues to about $ 1.45 billion, led to the creation of a real snowball among investors Has enjoyed high quality elevators over the last two years, plunged down and lost more than 30 within a few days.

The data are good - but not good enough

The expected level of revenues for the final quarter of the year is also higher than the company achieved at 2017, but it seems that once the performance does not meet the expectations of the early analysts, it is enough to scare away a significant portion of the investors.

The share shed more than 30 of its peak value, although it should be remembered that these numbers are still tens of percentage points higher than any market value the company had until about four months ago

The key question now is how the transition to innovative 7 nanometer lithography, in the world of primary processors and especially in the world of graphics processing, will affect the market share and financial capabilities of the company. Believe that the future of pink? Let everyone share your feedback!

As the bubble of excessive demand for graphic processing units explodes, it is likely to see a gradual and more moderate improvement in the company's value in the near future, which more closely matches the real market situation


8 תגובות

  1. In the context of AMD, the relationship between its financial performance (which is very good and the improvement trend that has begun since Risen's March 2017 launch) and stock performance - is a weak link.
    The impression is that AMD's share value is very volatile, so it is difficult for the investor to assess with long view how the stock will behave a few years ahead. Which means it's very dangerous for her share.
    But it should be emphasized to those who are less aware that its business performances are excellent and probably the best in 7-8 in recent years.
    Its economic future tends to be positive. Debt decreases from quarter to sovereign for profitability, sales volumes also rise,
    And in the field of processors, the impression is that, from moment to moment, it returns to the center of the stage and the giant.

    1. It has just been announced that Vega is coming to the new Pro Bottle, in my opinion the whales shake the market and smuggle weak hands and take the cheap basil stock.
      After all, this is the only competitor in the grocery and video card market, there is plenty of room for growth and we are all hoping that the new TSMC silicones will deliver the goods.
      t will be "configurable to Radeon Pro Vega 16 with 4GB or HBM2 memory or Radeon Pro Vega 20 with 4GB or HBM2 memory,"

  2. The domain of virtual currencies is declining, so buy less video cards.
    It will certainly help ordinary consumers, in terms of prices.

  3. indeed,

    Neodymia also decreased by approximately 30 per cent from its peak.

    In fact, in the past month,

    The stock market collapsed significantly since its peak in early October.

    All the stocks absorbed and kidnapped more and less.

  4. NVIDIA fell slightly less than 30 percent in a few months, AMD fell by more than 30 percent in a few days. The sharp change makes the matter spicy and a little more intriguing

  5. Raising US interest rates + Trump's trade wars in China have caused US stock declines, it has nothing to do with corporate performance.

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