2Semana·

AMD - Why I believe in it

Hey everyone,

I've been working with $AMD (-4,5%) and I have to say that the company has convinced me more and more. Sure, it didn't go up this year, but that doesn't mean we're on a sinking ship. 😎

On the contrary, the P/E ratio is currently below the historical average and the current share price as such also speaks for itself - it is below the fair value of the share.

Turnover has also increased from around 20 billion (2023) to 24 billion (2024) - an increase of around 20 % 😎

But it's not just the company's fundamentals that appeal to me; I am particularly impressed by the strategy of catching up. AMD has realized that you have to step on the gas to get closer to $NVDA (-4,8%) to get closer. It has already been able to gain market share in Japan, for example.

AMD also relies on powerful local hardware that enables AI applications to run directly on the device without first sending data to a large data center where it is processed. Very helpful when you look at laptops or smartphones.

Let's see what the future looks like here... 😄

But what is your opinion on investing in $AMD (-4,5%) - for or against? (also with reasons) 😎

16 Comentários

boz@boz

2Semana

I see it the same way. In just a few years, the majority of LLMs and other AI models will be running locally on end devices. I work in the center of this industry and the trend is clearly going in that direction. Incidentally, the trend is being reinforced by current US policy. Europe in particular (but not only) is groaning for "Sovereign AI" and "Sovereign Data". Currently, only large companies with the necessary capital can afford their own server structures for dedicated AI applications - and they do. But more and more SMEs and self-employed people, including lawyers and medical specialists in their practices, also want this - even today.

And even if you wanted to put a server rack with several Nvidia cards in your office or even an ambitious home for about 14-20k, which could run a complete model such as Deepseek locally, you would still have a power consumption of easily 5KWh with such a system. Regular office or home cabling does not provide that. An M3 Ultra Mac Studio from Apple can do the same for around 11k euros and consumes less than 500 watts under full load. And the upcoming M4 Ultra will consume even less and probably even be a little cheaper.

And AMD is going in the same direction with Ryzen AI Max etc., but for Windows and Linux. By the end of this year, this will be a hot topic and will have reached the masses. Mark my words.

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news03@user03

2Semana

@boz Why not Qualcomm?

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boz@boz

2Semana

@user03 So far I don't see anything from Qualcomm that convinces me that they take desktop seriously. X Elite was ok, but the M4 is 2-3x faster depending on the task, especially in NPU applications. Of course QC can suddenly come around the corner with a cracker, but I don't expect any surprises from them at the moment.

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Maximilian@Max095

2Semana

$AMD is my largest single position. I am also convinced of the company. 🚀

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Vinc3🚀@BlockBard

2Semana

That's exactly how I see it! PS: I'm only saying this to make myself feel better at currently -17%

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Maximilian@Max095

2Semana

@BlockBard I also still -22%🤣

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SemiGrowth@SemiGrowth

2Semana

AMD will have extreme problems keeping up with NVIDIA. I see the lead getting bigger and bigger. It takes them years to develop technologies that even come close to NVIDIA's and NVIDIA's software stack is way too strong. Also today at the GTC, again 3 major software solutions were made open source, which should bring even more people to the NVIDIA platform. AMD, like Intel, will hardly be able to play in the AI business

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SemiGrowth@SemiGrowth

2Semana

@SemiGrowth AMD, just like Intel, has strong chips. Some of which also beat Nvidia's in benchmarks. But the market is not interested in that. The customer wants a solution that simply works and interacts with other systems. And Cuda offers a huge software stack for all applications. While AMD still sells almost bare metal

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batic420@batic420

2Semana

@SemiGrowth As I said, I see a lot of potential here, especially in the area of local AI. There are far more end devices such as smartphones than data centers.

Furthermore, I can't quite confirm the statement "the customer wants a solution that simply works". A cost-benefit assessment must always be made here and not simply implement/buy what everyone is doing. Not every company (especially SMEs) has the same budget or the same goals.

But thank you for your assessment anyway! 😎

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CD@Carpe-Diem

1Semana

@batic420 Local AI can be a very good toy to play with, but only for enthusiasts. Normal people (90%) would be happy if their lives were simplified by AI that you have to pay for instead of changing devices, updating, upgrading, maintaining, etc.

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KoenigsRasse@KoenigsRasse

2Semana

I have 30 shares and unfortunately a buy-in of 130 🤣 but I also believe in the company...
And maybe soon much further than $NVDA

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Maximilian@Max095

2Semana

@KoenigsRasse Extremely good long-term price 😉

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Konstantin@Konstantin85

2Semana

I agree. I bought my first position at 90 euros and will continue to add to it. Very nice prices at the moment.

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Stephan K.@StrahlemannLP

2Semana

The question is whether you can finally gain a foothold in the sectors where the money is earned and this is exactly where Intel is still unchallenged and the implementations of AI are currently still very much aimed at the Nvidia Grid GPUs. It will be difficult for Radeon GPUs - the perceived eternal number 2 - to really gain a foothold there and AMD is currently threatened with the same development as 20 years ago. It therefore remains to be seen whether AMD will be smarter this time and make the most of its potential. My position is correspondingly small, and it doesn't bother me that it is down 20%. I would only invest more in AMD when it becomes clear that it is finally gaining a foothold in the enterprise environment

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batic420@batic420

2Semana

@StrahlemannLP Intel has been having more and more problems lately and, in my opinion, they are wavering more than sitting firmly in the saddle. 🤠

Why if not now is the chance for AMD to finally overtake Intel and firmly establish itself in the data center market. I also have a lot of faith in Dr. Lisa Su, she has also managed to increase the market value of the company enormously and I think she has also recognized how important it is for the company in the future to perform now in the fields in which NVIDIA is still partly ahead. I'm definitely curious to see what the next few months will bring - but I also understand your tactics with a slightly smaller position 😎

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CD@Carpe-Diem

1Semana

Sorry, but unfortunately I don't see the future of $AMD, $INTC etc. old technology giants. The trend shows that we will move from terminals to managed services. We may only need fast connections, super monitors, glasses and other accessories.

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