What up with $AMD?

 Its a cycle, that what it is...

Wait your turn AMD

$NVDA ==> $MRVL ==> $AVGO ==> $TSM ===> $MU ==> $AMD ==> $INTC

is a possible cyclic order.

Advanced Micro Devices (AMD) appears to be undervalued based on several valuation methods:

1. Discounted Cash Flow (DCF) Model:

   - Fair value estimate of $219 per share, suggesting AMD is undervalued by approximately 21% at its current price[1].

   - Another DCF model estimates the intrinsic value at $153.72, indicating AMD is undervalued by 15%[4].

2. Relative Valuation:

   - AMD's market cap should be 16-20% of Nvidia's, implying a fair value range of $228 to $285 per share[3].

3. Analyst Estimates:

   - Analysts' price target is $187, which is 17% higher than the DCF estimate of $219[1].

4. Price-to-Earnings (P/E) Ratio -- not a huge fan, but nevertheless:

   - AMD's current P/E ratio of 112.8x is higher than the industry average of 31.9x, suggesting it may be overvalued on this metric[6].

   - However, AMD's high P/E may be justified by its strong growth prospects in the AI market[3].

5. Growth Potential:

   - AMD is well-positioned in the rapidly expanding AI market, with estimates suggesting it could capture 20% of the $400 billion AI TAM by 2027[3].

While some models suggest overvaluation, the majority of analyses indicate that AMD is undervalued, especially considering its growth potential in the AI sector. Investors should consider AMD's strong position in the semiconductor industry and its potential for future growth when evaluating its current valuation.

Citations:

[1] https://finance.yahoo.com/news/advanced-micro-devices-inc-nasdaq-120014673.html

[2] https://www.macroaxis.com/valuation/AMD/Advanced-Micro-Devices

[3] https://www.reddit.com/r/AMD_Stock/comments/1b9cxi5/bullish_on_amd_valuation_argument/

[4] https://www.alphaspread.com/security/nasdaq/amd/summary

[5] https://www.alphaspread.com/security/nasdaq/amd/dcf-valuation

[6] https://simplywall.st/stocks/us/semiconductors/nasdaq-amd/advanced-micro-devices/valuation

[7] https://www.youtube.com/watch?v=05z36fSoWIo