AMD Reports Third Quarter 2024 Financial Results, Revenue Up 18 Percent YoY

[mav1178]

Yet, the "investors" aren't happy, wtaf?!

stock prices are meant to be a valuation of future earnings. so when you expect a higher future return but the company guides lower than expected, sometimes you just sell to move your money elsewhere.

retail investors look at the present share price. that is a mindset that took me years to change personally.

It’s time to ignore after hour results. None of the knee jerk reaction to earnings makes any sense.

makes perfect sense as it is small retail investors having an outsized effect on the price, but it also presents an opportunity if you want in on AMD or otherwise want to lower your cost basis.

One cardinal rule of investing: if you think your money has a better chance of appreciating somewhere other than your current investments, consider making an adjustment. A lot of beginner investors get stuck in a mindset that they will wait until things get better. If they buy Stock A at $100 which drops to $80, they will hold out until Stock A returns to $100. A smarter investor will look around and if they think Stock B has a chance of going from $30 to $40 in that timeframe, they'll jump ship.

yup - don't be afraid to take losses here to make money elsewhere.

knowing when to fold is as important as knowing when to bet. both gambling and day trading.

don't forget, large investment funds (or even those that have large enough holdings) also value future payout of dividends as much as increases in share price. those are things that plug bottom lines.

 

[mb194dc]

AMD still trades at 200 P/E Ratio ? Absolutely mental. More so given LLMs are very likely a bubble (biggest one ever?), because there's few decent paid use cases on the front end. Or at least ones which will generate the hundreds of billions needed to pay for the hardware and power buildout. Super Micro getting absolutely destroyed today and I wouldn't be surprised if the rest go in the next few months.

Not sure what will be left after.

 

[thesmokingman]

AMD still trades at 200 P/E Ratio ? Absolutely mental. More so given LLMs are very likely a bubble (biggest one ever?), because there's few decent paid use cases on the front end. Or at least ones which will generate the hundreds of billions needed to pay for the hardware and power buildout. Super Micro getting absolutely destroyed today and I wouldn't be surprised if the rest go in the next few months.

Not sure what will be left after.

SMCI getting destroyed for possibly being fraudsters ie cooking the books, don't conflate that.

 

[Vya Domus]

AMD still trades at 200 P/E Ratio ? Absolutely mental.

Nvidia doesn't have a particularly great P/E ratio either, don't see anyone complaining about that. Matter of fact most tech companies near the top don't.

 

[mb194dc]

SMCI getting destroyed for possibly being fraudsters ie cooking the books, don't conflate that.

It's all BS though isn't it? Loads of money going in to hardware buildout, but few decent paid use cases on the front end for any of it. The likes of Co Pilot (Clippy 2) and Gemini and terrible. So we get the likes of SMCI cooking the books as well to take advantage. Unless people are paying hundreds of billions of dollars to use LLMs, my guess is we'll see Nvidia and AMD fall by similar amounts in months to come.

 

[thesmokingman]

It's all BS though isn't it? Loads of money going in to hardware buildout, but few decent paid use cases on the front end for any of it. The likes of Co Pilot (Clippy 2) and Gemini and terrible. So we get the likes of SMCI cooking the books as well to take advantage. Unless people are paying hundreds of billions of dollars to use LLMs, my guess is we'll see Nvidia and AMD fall by similar amounts in months to come.

AI is at the beginning of its S curve. It takes years for emergent technology to turn a profit. Take Tesla for example, it took them 10-12 years to go positive on profits.

 

[Steevo]

Yet, the "investors" aren't happy, wtaf?!

View attachment 369385

Time to buy the dip, the only reason I won't is. Election, fabs, and I feel we are in for a HD2000 repeat. Once europe and or the US has fabs they can use and they get their GPU division back on track it will be the time to buy the dip.

 

[cvaldes]

Why would you buy the dip? AMD's guidance is poor.

You are better off putting money in NVDA because AMD clearly stated that they won't be raking in the big bucks anytime soon.

 

[Vya Domus]

Nvidia is No.2 in market cap, might as well buy Apple or Microsoft, companies that have been around for far longer which already survived a major tech bubble and are not going to be wrecked when the AI boom slows down.

 

[Imsochobo]

What you are saying makes no sense, both AMD and Nvidia have different products for different markets. And professional segment is a very small niche for both of these companies dwarfed by both gaming and datacenter.

I don't care about the product, I care about the Die and for AD102 it has 3 markets.

Nvidia sells the AD102 die as Datacenter with the Nvidia L40 among others.
Servers with AD102
Every vendor offers readymade datacenter and AI servers powered by AD102.

RTX 5000 Ada and RTX 6000 ada isn't huge volume but still it's a market that has a great profit margin.

So it does make perfect sense, nvidia sells their gpu in 3 markets, amd sells to gamers at low margin only.
Nvidia can afford to make a large chip cause they address a larger market with the chip, also in high margin markets meanwhile amd has only one low margin market: Gamers.. well I'd say that also barely exist now too.

 

[Vya Domus]

I don't care about the product, I care about the Die and for AD102 it has 3 markets.

Nvidia sells the AD102 die as Datacenter with the Nvidia L40 among others.

Who cares, Nvidia made most of their money with the likes of A100 and H100 not AD102.