Bullish on AMD
$Advanced Micro Devices (AMD.US)$ is probably one of the greatest turnaround stories ever, and investors have made incredible returns in this counter over the last six years. Under the leadership of Dr. Lisa Su, AMD has showcased tremendous business execution, and the company delivered yet another blowout quarter on Tuesday.
As some of you may already know, I am an " $Intel (INTC.US)$ bull"; however, I am not an "AMD bear" like some of the commenters in my recent articles have suggested. Today, I would like to explain my positioning in the semiconductor sector in some greater detail. First of all, we own Intel as a part of our dividend growth portfolio, which also consists of the likes of $Broadcom (AVGO.US)$. Since AMD offers no dividend, it is unsuitable for BTM's DGI portfolio. On the other hand, AMD's risk/reward is keeping the stock out of our Goldilocks Zone (high growth) portfolio. Within this portfolio, I own $NVIDIA (NVDA.US)$ from a very low cost-basis; however, I am not adding at current valuations.
![Bullish on AMD](https://ussnsimg.moomoo.com/8578908424812255413.jpg/bigmoo)
Today, AMD's market cap stands at ~$150B, and it is quickly closing the gap on Intel, which is now valued at just ~$195B. Now, Intel does ~5x AMD's revenue, commands higher gross margins, and produces ~6x AMD's free cash flow. Considering these numbers, AMD seems expensive; however, growth is on AMD's side due to superior products, product roadmap, and business execution.
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MHfin : Am long XLNX waiting for merger with great arbitrage boost. Was nice to get the positive merger comments from Lisa Su, we’ll have to see. What is your thought about merger going through on immediate AMD value? Down due to new stock issuance, up due to XLNX’s margins?