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Oppenheimer raises red flags on AMD, Cirrus, semiconductor sector

  • Oppenheimer calls Advanced Micro Devices (AMD -2.3%) and Cirrus (CRUS -1.6%) its "top structural/secular shorts" in downgrading both to Underperform, part of a broader negative semiconductor outlook.
  • AMD's PC/graphics sales likely will continue falling faster than PC units as Intel leverages its vast manufacturing/cost advantage to aggressively and profitably capture low-end share, the firm says; that, combined with low margins from its chips for Sony‘s PlayStation 4 and Microsoft‘s Xbox One, promise to bring down overall corporate gross profit.
  • On CRUS, Oppenheimer sees lower average selling prices and gross margins; Broadcom ([[BRCM] +2.4%) is cut to Perform from Outperform, as the firm does not believe the LTE business is going to materialize after the recent analyst day.
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Comments (17)
  • berniespear
    , contributor
    Comments (251) | Send Message
     
    Poor CRUS, never getting a break.
    16 Dec 2013, 12:56 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11972) | Send Message
     
    Interesting: roll over and die, AMD? A superb accumulation opportunity by the Oppenheimers. I like such nonsense. Just, what are they thinking?
    16 Dec 2013, 12:58 PM Reply Like
  • DWD Investing
    , contributor
    Comments (10789) | Send Message
     
    AH

     

    They are thinking the same thing as all tech falling. And falling it is! Did you bring a spare parachute? I'll take one.

     

    It's all about leverage in the tech sector, from networks to graphics. Those with the biggest bank accounts will low ball the smaller companies to BK.

     

    I'm glad Nokia is going to have a ball of cash for 2014. They'll need it.
    16 Dec 2013, 04:39 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11972) | Send Message
     
    Nah, it's just stock comedy. Read this http://bit.ly/1ejsvCG and enjoy a shot of fine Evan Williams while reading.

     

    Nokia's dead money since six weeks now, glad I'm not putting my eggs in that basket.
    16 Dec 2013, 05:20 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1535) | Send Message
     
    "AMD's PC/graphics sales likely will continue falling faster than PC units as Intel leverages its vast manufacturing/cost advantage to aggressively and profitably capture low-end share, the firm says; that, combined with low margins from its chips for Sony‘s PlayStation 4 and Microsoft‘s Xbox One, promise to bring down overall corporate gross profit."

     

    Gotta be kidding right?

     

    Graphics cards sold out in most places. Xbox and ps4 sold out everywhere and in record volume.

     

    Who cares if margins are low for console chips? they are guaranteed profits and make up the margins with high volume. This is like complaining about a bonus being too low.
    16 Dec 2013, 01:07 PM Reply Like
  • DWD Investing
    , contributor
    Comments (10789) | Send Message
     
    They said, 'continue falling" which means for the 2014 year. Currently sold out doesn't mean big revenue for 2014.
    16 Dec 2013, 04:40 PM Reply Like
  • Hendershott
    , contributor
    Comments (1634) | Send Message
     
    My bonus is too low.
    16 Dec 2013, 01:17 PM Reply Like
  • AbundantCores
    , contributor
    Comments (109) | Send Message
     
    lol at these idiots, AMD's GPU's are sold out constantly the world over they are so much in demand. over 4m AMD powered game consoles sold in 2 weeks with $100 from each one going to AMD.

     

    AMD havent done this well in years

     

    In the light of that they have Down Graded AMD to Under-performing....

     

    Lunatics. do they just make this crap up as they go along, it looks like it.
    16 Dec 2013, 01:32 PM Reply Like
  • scalebill
    , contributor
    Comments (2) | Send Message
     
    Oppenheimer is probably trying to strengthen their short position
    16 Dec 2013, 01:37 PM Reply Like
  • bas15066
    , contributor
    Comments (26) | Send Message
     
    That's the way I see it too, AMD in high growth markets and doing well. Also hinting of other big deals in the works got him spooked.
    He's a looser and don't have a clue. INTC used to high margins, not anymore having to shift to low entry level products and drop prices to gain market share since they fell asleep at the helm and just woke up to the reality there empire was in jeopardy, MMMM no mention of that.
    16 Dec 2013, 09:38 PM Reply Like
  • nankaimar
    , contributor
    Comments (6) | Send Message
     
    These guys have no idea what they are talking about. I'm buying on the AMD dip.
    16 Dec 2013, 01:37 PM Reply Like
  • sourdo
    , contributor
    Comments (230) | Send Message
     
    stop loss kicked in, sold my 2000@ 3.60.... oh well wait and see...

     

    sourdo
    16 Dec 2013, 03:17 PM Reply Like
  • DWD Investing
    , contributor
    Comments (10789) | Send Message
     
    Sour

     

    Think you did good. Watch closely. Might be a good time to start a strategy for a later position. Hasn't been this low for a while.
    16 Dec 2013, 05:05 PM Reply Like
  • Mathieu M J
    , contributor
    Comments (5) | Send Message
     
    1)Most of INTC APU/CPU have higher profit than than AMD, not a news, but AMD is now seizing more market share in the retail market
    2)NVDA s graphic card is far more worse than AMD in APU, except NVDA purchased by INTC that make them more competitive, or NVDA is declining in front of AMD
    16 Dec 2013, 05:57 PM Reply Like
  • geekinasuit
    , contributor
    Comments (1552) | Send Message
     
    My brain feels like a pretzel trying to make the logic fit.

     

    How does record breaking sales of the AMD Radeon GPU equate into "falling" sales? Going up means falling down????How does the record breaking sales of semi-custom console chips equate into poor profits? Oh I see, it's because the margins are supposedly "low" ... ? By that logic, if AMD was showing a loss, then would they consider that to be a good thing so long as the margins were high?

     

    Intel doesnt really have any significant GPU market share, and zero console chip sales, so how does Intel have anything to do with taking away sales from AMD in the console and GPU market?

     

    The price/performance ratios just don't equate into a significant threat, it's not even close, and when Kaveri is released, the price/performance ratio gap is expected to widen a whole lot further.
    What is Intel doing that has a chance to really compete with AMD in the APU market?

     

    Why is the SeaMicro Verizon win not worth a mention? That market has nothing to do with supposedly declining PC sales, which ought to be considered a good thing for AMD, right?
    16 Dec 2013, 05:58 PM Reply Like
  • bas15066
    , contributor
    Comments (26) | Send Message
     
    100% agree, INTC lowering margins to compete, wait? isn't that cause for a downgrade? Low margins, flat for 2014? Huge Co lowering margins, gota be worse than a streamlined growing one in high growth areas. Good thing they got boat loads of $$ because there going to need it.
    16 Dec 2013, 08:56 PM Reply Like
  • Kyle Spencer
    , contributor
    Comments (1230) | Send Message
     
    The gaping hole in Oppenheimer's analysis is the litecoin mining pools that currently revolve around AMD Radeon GPUs. The current LTC network hashrate of 300,000 MH/s, implies 390,000 AMD R9 290 sold or 10% of AMD's annual revenue. http://bit.ly/1cxLq9p
    25 Dec 2013, 07:20 PM Reply Like
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