AMD: shares down despite reiterated guidance
(CercleFinance.com) - Shares in US chipmaker AMD are down slightly on the Nasdaq on Friday, even though the company reiterated its first quarter financial guidance, expecting the impact from Covid-19 to be "modest.
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At its 2020 financial analyst day yesterday, its first in nearly three years, AMD said the coronavirus could result in revenue coming in at the lower end of the guidance of approximately 1.8 billion dollars, plus or minus 50 million dollars.
Its full year 2020 financial guidance remains unchanged.
"With the company reiterating guidance, providing a constructive set of new long term financial targets, and generally blessing expected timelines around its next generation of product releases, we came away with only positive takeaways from yesterday's event," Wedbush analysts say.
"Management presented a compelling strategy and roadmap that positions it to stay ahead of Intel in MPUs, and gain share in parallel processing," Jefferies added.
"AMD's presentations thoroughly outlined its strong product positioning," noted Aaron Rakers at Wells Fargo Securities.
Analysts see just one concession: AMD shares are still viewed as more fairly valued than cheap.
"Specifically, the stock currently trades at 42.2x NTM P/E a 132% premium to the SOX index", Credit Suisse pointed out.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
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At its 2020 financial analyst day yesterday, its first in nearly three years, AMD said the coronavirus could result in revenue coming in at the lower end of the guidance of approximately 1.8 billion dollars, plus or minus 50 million dollars.
Its full year 2020 financial guidance remains unchanged.
"With the company reiterating guidance, providing a constructive set of new long term financial targets, and generally blessing expected timelines around its next generation of product releases, we came away with only positive takeaways from yesterday's event," Wedbush analysts say.
"Management presented a compelling strategy and roadmap that positions it to stay ahead of Intel in MPUs, and gain share in parallel processing," Jefferies added.
"AMD's presentations thoroughly outlined its strong product positioning," noted Aaron Rakers at Wells Fargo Securities.
Analysts see just one concession: AMD shares are still viewed as more fairly valued than cheap.
"Specifically, the stock currently trades at 42.2x NTM P/E a 132% premium to the SOX index", Credit Suisse pointed out.
Copyright (c) 2020 CercleFinance.com. All rights reserved.