Advanced Micro Devices Inc

AMD: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$772.00	Dhyzkh	Vprzrcgsh

Advanced Micro Devices Earnings: Fair Value Estimate Intact as Firm Provides Good News on AI GPUs

Brian Colello

Jul 31, 2024

Narrow-moat Advanced Micro Devices reported solid second-quarter results and provided investors with a healthy third-quarter forecast, highlighted by the firm’s upbeat commentary around its artificial intelligence graphics processor, or GPU, business. We maintain our $145 fair value estimate and view shares as fairly valued. While we’re pleased to see the firm lift its 2024 AI GPU revenue outlook to $4.5 billion from $4.0 billion, we’re not altering our long-term AI GPU forecast too much and acknowledge the wide range of outcomes for the fast-moving AI GPU industry.

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