Analysis of AMD: Cyclical Semiconductor Stock

00:04:59 It doesn't look that AMD is a good stock to buy right now

Last time AMD reached all-time high was in 2000

The stock has been struggling for the past two decades. Is the struggle over? We will answer this question in this video

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And this is heavy conductor company which develops processors for computers the main products of the m d equals

x86 microprocessors are still unknown devices or

incorporated into accelerated processing unit AP youth also, they have GPUs graphic processing units they have

Semi-custom processor Michael's terms as you'll see system-on-chip products and technology for game consoles the company started in

1969 firstly concentrating on making

semiconductors for one for random access memory in

1981 IBM built its first PC and then they had a contract with Inter that Intel with deliver the

x86 a micro processors for this PC

But earlier the condition that the patented micro processor will have a second source manufacturer and interest empty

So a second source manufacturer is another company making the patent third

semiconductor for in depth

So the shared patterns actually Intel could make those products that had was patented by AMD and vice versa

so this was a brief boom for AMD because they were making those micro processors for

intelligent virtually went into the IBM pcs and the IBM pcs were actually the first

personal computer and in 2006 am the occasion idea and a G is a region as we know is a direct competitor to

Nd just force and he has to agree segments. The first one is computer and graphics in 2016

that was 46 percent of older values, but in

2017 that moved four to 56 percent of revenues just like what happened with

NVIDIA is resetting this huge increase work because of krypter krypter poop because people needed those

computers and graph in order to mind those crypto currencies such as Bitcoin any field of

The second part of the revenue is enterprise embedded and send me customs

This is 44 percent of revenues in 2070. MD doesn't give the exact numbers

This is everything you can get about the action you all only these two segments

They will tell you exactly how much they made because all they were selling those

Processors just for crypto money, but as an estimate

I will say that the up they made our

18 billions from the error maneuver from the crypto pool and that compose about 15 percent of revenues

Let's now look at the fundamentals of NT. This is for a stockpile of 20

$1.30. So the period is 66 Ponce's which is very high. It's very high

Even for this company if you look at an Vita and yah has a new appearance right now

and

They have a 40-year of 30 bar, which is also high the PE g is 80

So what we can learn from Fuji it is

Hydrogen, so that the world is a better it is for a company

the beach is actually how it is a growth prospect of the company the minimum purchase price and in

superficial so with the picture indicates that in the coming year the if this is the focus of Wall Street analyst

Dr. And it will not be growing so much beta is four four four four four

Four four four is about it because Vida is a measure of volatility

instead of one wish that the stock is moving the same as

the Stockman the stock market each other's a seventy five hundred but 4.4 for it means if the

S&P 500 gained 10 percent in one year

the

Penny stock will get 40 percent but the other does and 500 losses d % AMD will use 80%

This is what is called by every dollar for so the profit margin is five point five zero

Which is quite blue, the technically ratio is one point five five. It's

Romola we'll say they're connected to what was seven since this is a good point

They have a good current ratio. But if you look at the complete image as a block, but they're correct

We chose the current ratio is a measure of how much cash and cash equivalents or assets that can be converted into cash

That they have for the next fair part

Divided by the current liabilities the Canada. These are all the data they have to be either coming to an point

So the price to book ratio is 17, which is quite high which is by looking at all these fundamental

But one thing you should understand about nd is not the stuff cyclically

Actually, most of Sammy conductor companies they stop a cycle and it's because of Moore's laws

Bustos is not approximately every two years the number of transistors on a chip doubles. It means that this space

Semiconductors is very competitive and the branch of a particular chip will fall drastically when a new chip is made and you foster

cheaper and

Smaller chip is made the fact the price of an older chip will fall, roughly

and that's why those stocks are cyclic on if you will look at the top of

AMD you will see that the stock peak in 2000 in 2006 and then in 2000 in 18

So we are in the top Ruby get to be on the top of the cycle right now

So if this logic follows right now LM is going to crush

But we should be careful here because rules Rhodes is dying

it's going to end very soon because of quantum computing because like I said every junior you can put

smaller smaller

Transistors on a chip you can double the number of transistors, but now other charges also getting smaller and smaller

they are quantum effects taking place and those quantum effects make it impossible to make smaller transistors and

As no IBM and whose Vancouver they are working on quantum computers

so it will be hard and ultimate is even smaller transistors until we have

We have this bundle system work in quantum system

which can really be integrated into our

Technologists and this is going to take a few years to happen

if you the case to happen so long term we can say that that

the semiconductors will have some problem but with 5g common in 2020 and even

2021 he and all the other

Semiconductors are going to profit a lot, but it's only shoulder. So now let's look at the competitors

They have did you see?

they can compete actually the main competitors of energy of

Nvidia and Intel but if you can't believe the to come the freakin business will say that and this

completing it gets an betta and in death while in lndia

Hardly competing against each other. So in every had the hardest work here and if you look at the stock of

Over the years will do give another book value for some year. They lost so much Barilla than Book value negative

So this is how things are bad when you are at the bottom of the cycle of

Semiconductors and if we compare with Intel and media, you will never see such bad things as with

Nd so that's why I am do right now and even is the full price

I will be very skeptical to investing and heavy and even if you look at food will read the annual report

There is something that I really don't like about this company

Yes

What they were in the 2017 annual report Intel corporation's dominance of the microprocessor

Market, and I received business practices, maybe meet our ability to compete effectively

this is

What one does it won't be like they are complaining on the annual report

There are so many companies that do say that we have competitors that we said that that our competitors do true

It's the 49. Yes, that's good. But here they're complaining about the intense dominance

You should not complain while competing. Go ahead

Make better products and then you can be the company. I don't like companies. I don't like excuses

this is an excuse to conclude out and say that long term MD is not a good investment and

Vita is better and me

jaha, because of I because of self-driving cars and now into the movie to 5g, but for the short term

Can be a good investment because of the psychical nature of the company

But you should be careful about the Moose laws, which is ending I told you about that

So what it's a good in especial duck because of this cycle. If you are the bottom of the cycle it is

provable that the stock is going to rise and

They are going to get with 5g of possible

So for the short term, this is a good stuff

But for me right now, I would have invested in but for the short term in this stuff

I would not invest unless the stock price is below $2 of 3 cents. So

You see it's not a good investment early. We need to lose

90% of its value for me doing facilities. Let me know in the comments

Do you own any and what do you think of this stock ones in the future of this company?

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