AMD Stock Report
2-Year Price History
Recent Price
(7/2 4:20PM)
-3.3%
$3.78
52-Week Price
$1.62 - $6.47
Market Capitalization
$2.5 Billion
Most Recent Dividend
$0.00
Ockham's Rating
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AMD Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at AMD through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 2.26x and 0.77x respectively.
Utilizing this range we can see that AMD’s current Price to Sales per share ratio of 0.33x is significantly below its average levels historically. In fact, with a current price of $3.78, AMD is a full 79% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for AMD.
AMD Cash Earnings
When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of AMD, it appears that either the current estimate for Cash Earnings is negative or AMD is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters.
Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis AMD receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.
AMD Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for AMD to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard AMD as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.
The latest TV Media Discussion
“…>> I am absolutely loving that a once great basketball town. >> could you get the refs to call one now again when they keep tripping kobe? Despite my own predilection. Go ahead. >> caller: ADVANCED MICRO DEVICES, adm, I have a little concern that over the last few months the ownership of their chip plants has gone from adm to a joint venture. >> mm-hmm. >> caller: mostly foreign owned. …” …more details…
“…Of the earnings. 57% of you said yes you would, ahead of an expected beat. Just like ibm, intel as well as sis skoe subpoena to that the right trade? >> i'm going to stick to my guns with cisco I did it, amd I did I would collar buy a put, sell a call against it. I would be careful approaching …” …more details…
“…Can a tech speck like brocade be far behind? We don't want to overlook the semis entirely. After all, intel announced the pickup on a down day and amd is taking share. You know I liked it at two and I like it at 4. I don't care how long I have to repeat it, amazon, apple, google and research in motion, all did …” …more details…
“…Protecting consumers. It's hard to imagine how that products consumers when prices have dropped and memory is up and everything has gone well. There's only one competitor and that's amd. So who are we really talking I like the last paragraph, the last sentence, carl. Actually, the last -- and becky. >> and becky. I'm not sure -- …” …more details…
“…No evidence that intel is harmed consumers in process it is a vibrant market. It is a poster-child there has been a fierce price war between intel and amd, their arch rival. Over the last 10 years there has been rapidly increasing innovation. Faster cpus. Only loser here is amd the way the market numbers are, amd is actually picking up some against intel. Neil: well, let's I will give europeans benefit of the doubt. Maybe they're right. Somebody intel is doing, making superior stuff, too …” …more details…
“…Bill sammons, out of our d.C. Bureau thanks a lot. Sandra: interesting topic. Toss it over to you guys, cody. Cody: interesting topic. You remember when amd rolled out new chips that actually kicked intel's butt? Now does amd even sell computer chips anymore? To tell us whether intel will sell cutters and should we shut up and buy intel stock. John schooner. Thanks so much for joining >> good evening. Cody: eric in the house too, set it up. Amd versus intel. Will amd have any market share at all in five years or basically be a subsidiary of texas instruments with 2 percent market share in the >> no. I think amd has a good opportunity in the future given types of products the company has come out with in the last say, six months and will come out with in the next year to two years. …” …more details…
“…As a smaller company we can out-innovate intel and the know that we will give intel tom, mccoy, amd executive vice president of legal affairs, thank you for being on fox business with the >> thank you. >> cheryl: closing bell. 19 minutes to go. Coming up next, a fox business exclusive. …” …more details…
“…All we ask is that intel be told to obey the law. Many we were just looking at graphics. Not sure if you saw them. To show the viewers the market share difference between amd and intel. It's really, they do have the lion share of the market share in every segment, every division of the business. …” …more details…
“…How do you explain under the mantle of the bush administration the s.E.C. Decided on the basis of the evidence they needed to open a formal inquiry? The fact of the matter is that amd is an innovative company with a new innovative business model. We're determined to build that in new york. We're determined to make the investment to create those jobs. That's one of the great events in our country for …” …more details…
“…But the regulators concluded based on the evidence and interaction with the industry it's just not so. >> it's no secret, really, amd has is under financial pressure. Manufacturering capability. Is your attention or what you're thinking that the only way to advance the business is go after the intel in the court system? >> not at all. In fact, it's important to note in this period they've been investigating, it was a period of time when amd had clear technology leadership. We were actually advancing our market share somewhat. There is no dispute about amd innovative capability. What is clear is that intel fearful of risking the monopoly business modelal plays out of bounds to foreclosure amd innovation, less expensive, equally good if not better innovation from the democracy of the that was wrong. >> this is a crazy question, here in new york, upstate new …” …more details…
“…We fully intend to appeal. We disagree with the decision. The next round of appeal goes to the court of first instance. >> cheryl: joining me now with the other side of the story, tom mccoy, ADVANCED MICRO DEVICES executive v.P. For legal affairs. Tom, thank you for being on fox business. >> thank you for having me. >> first, I want to get your reaction to paul otellini who …” …more details…
“…Well, you know, the european commission is hitting intel with a record $1.45 billion fine for abuse I have practices when it comes to the smaller competitor, amd. I spoke with intel ceo paul otellini earlier today who says the commission is wrong. Watch this. >> I think that some of the evidence that we believe …” …more details…
“…With the intel ceo. Just a few hours ago about the e.U. Decision to fine the company for anti-trust issues. We have the executive vice president for legal affairs from their top competitor amd coming up next. Later on, a fox business exclusive. Royal caribbean chairman and ceo tells us what it's like navigating in the tough …” …more details…
“…Intel is protesting the european unions record $1.45 billion fine for stifling competition against rival advance micro devices. Amd. Well, this hour, we are going to get the skinny from amd. We're going to hear what intel's chief told me about the decision earlier in the day at fox business. Right now, here is how the stocks are doing right now. Intel is trading higher by 6 cents. Right now ADVANCED MICRO DEVICES trading higher as this is a legal fight that will drag on for a long time. Not just in the european traders know that. Somebody that knows a lot of things right now. …” …more details…
“…Multi-year investigation. Going through countless >> david: they say the euros say intel was paying the computer manufacturering to use their processors instead of using amd's products. >> right. As a result they said they violated section 82 of the european union treaty. >> before we go further, I want to point out an irony here. I remember fighting with andy …” …more details…
“…Of socialist european taking our american from american business. >> I hope you still think that. Now I think intel was brought to book by amd, another american corporation. Microsoft was brought to book by sunmicrosystems. It's american corporations battling it out in foreign …” …more details…
“…The dow jones is down by almost two full percentage points. >> the primary chip that we're looking at is everybody is talking about intel today. That's obviously the focus. It should be the focus. Who is the beneficiary? It is obviously amd. They've had activity for quite some time. But the stock is way ahead of now trading and pushing towards $5 a share. But they're coming after. They began june 4 calls, they were just very aggressively buying those. They shifted to july 5 calls now today the june 5 calls. Extremely active out there. People expecting more to come for amd in the future. And the future is out a few they're pushing out to june and all the way out to july. >> I don't want to leave people but mosaic is another name you're looking at. …” …more details…
“…At home, it's very easy and i've shopped for certain -- it is though. Buy a power supply, buy a box, buy a mother board and you buy a chip and when I buy my laptops, there was a point where amd had a better mobile chip. I think the consumers, at this point in the it it t. History where everybody has one or two …” …more details…
“…>> nutritional storm troopers. >> retribution, the european commission has find intel a record $1.5 billion and order it had to halt illegal rebate and other practices intended to scream out its rival amd. Here is how both are trading now, intel down fractionally, amd down on the day, 4%. In our "call of the wild," should u.S. Companies be punished for being capitalists? Bring in securities law attorney tom ogeny and rick santelli. Tom, got to explain this one to me, amd is gaining market share and the price of chips is going down. >> so it's unclear to me what is wrong with this situation. Economic union, at least, …” …more details…
“…What it calls monopoly abuse. The commission says intel gave price discounts to computer makers who bought all of the chips from intel. Essentially, blocking out rival amd. Now, intel ceo paul otellini saying that the company has done nothing wrong and will appeal in other news today, lots of corporate earnings, allianz, one …” …more details…
“…Margins and their share at the 80% range and keeping us below 20% by using these hidden systems of rebates and coercive practices to force computer manufactures to boycott amd. It's pretty clear and it's a violation of the law. >> we have to leave it there. Tom mccoy, thank you very much. >> interesting -- >> times tom. …” …more details…
“…Question. >> just really quickly. Idc was out with market share numbers yesterday indicate that intel's market share globally is actually declined by 4% during the first quarter while amd's market shares increased that 4%. Again, how does amd make the case that you're not able to gain market share if even people like mark haines are at a best buy where salespeople are pushing amd's products? Again, it just speaks to competition in the marketplace. >> amd is a very compelling competitor. We're very innovative. And, of course, there's but if you look at market shares over time, you can see that intel's done a pretty good job …” …more details…
“…>> yeah, tom, it's jim goldman here in silicon valley. Just a question for you. As you look at these headlines today, chip prices are down 60% over the past maybe decade or so. I'm just curious how amd can make the argument that consumers have been suffering when intel employees where chip processing power doubles every 18 months, prices are cut in half, and yet …” …more details…
“…Rival amd speaking out on sbel's record eu fine saying the ruling is an important step toward establishing a competitive joining us now, tom mccoy, executive ep of legal affairs for amd. Being with us. >> hey, thank you very much for having me. >> you haven't been able to compete on a level playing field in europe? >> absolutely. …” …more details…
“…Cost you $1,000 ten years ago in now more powerful and costs you 10 bucks on the differential in terms of advancement and in terms of price decline. Where is the competitive. Amd, which launched this accusation in 2001 has actually gained market share against intel, not lost. Consumer doesn't seem to be hurt by this. Ultimately you're going to have to ask whether prices would be …” …more details…
“…1.03. Let's check with shibani joshi for more of this latest shibani? >> hi there, alexis, want to get you up-to-date on chip chatter between intel, amd and in-line, that's the new news that the european commission is going to fine intel 1.4 billion dollars because of accused anti-competitive practices, intel's ceo paul otellini coming out saying he plans to challenge the ruling. Intel never sells products below cost. Amd, the company's rival which filed this claim back in 2000 also responded within the last hour, saying, quote, today's ruling is an important step to establishing a truly competitive both the stocks, however, are …” …more details…
“…The commission says that intel essentially gave price discounts to computer makers who bought all their chips from intel. Essentially blocking out rival amd, intel ceo saying that the company has done nothing wrong and will appeal the fine. As for the stock price, in fact, some interesting news from intel overnight, saying from mr. Otellini, that the business …” …more details…
“…Check out the shares of intel which are trading higher today. Probably because the company said that it's business, the ceo said second quarter business has been a little better than let's check out amd. I guess you could say amd would say that their business is going to improve maybe in europe because it's going to be a fairer playing field, according to them. It's not from the $1.5 billion …” …more details…
“…Move from a world in which intel ruled to one which is ruled by they go on to say, he goes on to say, after an exhaustive investigation, this -- this is another guy. S this the evp for legal affairs at amd. After an exhaustive investigation, the eu came to one conclusion, intel broke the consumeers were hurt with this the industry will benefit from an end to the a monopoly and inflated prices and consumers will enjoy greater choice, value and innovation. That's amd's take, not surprising as intel's take, probably not surprising. My take on it was probably not surprising. …” …more details…
“…Commission fining intel $1.4 billion for monopoly abuse. It says intel gave price discounts to computer makers who bought all their chips blocking out rival amd. Intel says we have done absolutely nothing wrong and will appeal that record fine. >>> elsewhere earnings to report, ing, the dutch …” …more details…
“…Rebates or other parts of the world? Our rebate structure is the same we don't condition our rebates on any kind of promise of sclus signifity or promise not to buy from amd. We have a simple structure that says the more you buy from us, the lower net price you're going 0 get. That's a simple volume scale that comes down as people buy and more and more goods from us. …” …more details…
“…More focused on the claims of in this case, there's only one company that's made a complaint. >> that's absolutely right. The only litigant in this case, the only complainant was amd, our principal competitor. If you listened to the commission seems the europeans are trying to bring this consumer harm that's a good thing. …” …more details…
“…>> is that what you think this is? Or is this an attempt to raise >> it's a shakedown. What are they going do with $1.5 are they giving it 0 amd? >> they've give it to pensioners, I don't know. >> I don't know where the money >> they're two u.S. Companies and the eu is fining them $1.5 …” …more details…
“…Buy what , when and how? >> how does that relate to the eu fining intel and a. Intel and amd are american companies. Trying to do business where no their idea of antitrust relates to having -- protecting competing companies because of …” …more details…
“…Calls monopoly abuse. The commission says intel gave price discounts among other things to computer makers who bought all their chips from intel essentially blocking out that big rival amd. Intel says you know what? We will simply appeal the fine -- we will certainly appeal in other news a growing belief that the global economic slump is letting up has pushed the …” …more details…
“…Again, otellini coming back and saying he's not going to take this sitting down. He's going to appeal the ruling. He stands behind his practices. What do you do in a circumstance when there's only two players in this industry, amd and intel, intel clearly the dominant they say we're just trying to do business as usual. This is how it works. Alexis: speaking of fewer players, a lot of speculation …” …more details…
“…Intel never sells products below intel stock as I mentioned is up a little more than 1% in premarket trading. Amd also getting a slight boost, up close to 1%. Investors also weighing comments from intel's otellini yesterday saying he has a positive outlook for the second quarter saying that chip orders have been, …” …more details…
“…That the company will in fact also part of the eu's order the chipmaker will have to stop certain sales tactics which blocked rival amd from selling computer chips. You know, intel is accused of paying european retailer media market to only sell intel the company is also accused of giving price discounts to …” …more details…
“…Choice. Prices of pcs to keep going down. With productivity rising, you >> it's a terrible thing. >> it's a u.S. Company, they're protecting amd? >> they are absolutely, holding >> amd has a lot of production >> if they laid off anyone, they unemployment benefits for for three years over in europe for anyone played off from amd, I >> I would not disagrees. >> cody, good to talk to you. >>> in some other news, the obama administration has begun discussions about changing compensation practices across …” …more details…
“…The european union has fined intel a record 1.4 billion dollars for what it calls it is ordering the chipmaker to halt sales tactics that it says essentially blocked amd from selling computer chips. The eu says the company gave price discounts to manufacturers for buying all of their chips from intel. By the way, intel has three …” …more details…