AMD: Aggressive M&A As A Sign Of Desperation
Summary
- AMD remains a 'Strong Sell' due to significant overvaluation and persistent underperformance versus Nvidia, especially in AI and data center growth.
- Recent aggressive M&A activity signals desperation to catch up with Nvidia, but integration risks and poor past acquisitions raise red flags.
- AMD's lower R&D spending and weaker pricing power limit its ability to compete, pressuring margins and future free cash flow.
- Despite short-term momentum and bullish sentiment, AMD's long-term prospects are clouded by competitive disadvantages and questionable strategic decisions.
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