AMD erases losses as activist hedge fund Third Point said to take stake

JHVEPhoto

• AMD (NASDAQ:AMD) shares erased earlier losses after it was reported that activist hedge fund Third Point had taken a passive stake in the company.
• Run by Dan Loeb, Third Point took the stake in the company when AMD (AMD) shares "struggled," CNBC reported.
• Run by Dr. Lisa Su, AMD (AMD) has seen its PC business suffer in recent quarters as the broader PC industry has remained weak after the benefits of the pandemic. However, its data center business has seen strength, as evidenced by the company's recent fourth-quarter results.
• Shares have gained 22% year-to-date, drastically underperforming rival Nvidia (NVDA), which has gained more than 50% on the backs of hype surrounding artificial intelligence.
• AMD (AMD) did not immediately respond to a request for comment from Seeking Alpha.
• Last month, investment firm Bernstein said AMD (AMD) and Apple (AAPL) could be responsible for Intel (INTC) never seeking "peak" PC revenues again.

Comments

[Autosoft]

AMD is the most solid company for compute going forward... Intel spent all their capital on anti-trust and Nvidia can never catch up to EPYC...
Lisa Su is a great leader who took advantage of the previous tech to enhance newer tech...

At one point every CPU was a chiplet where all the IO was in another chip... Hell at one point even the FPU was a separate chip...
But AMD has always been looking for density while Intel was looking for profits at all costs, damn the OEMs, damn the partners... Nvidia became the pre-eminent GPU compute provider because Intel canceled all chipset licenses back in 2006 or so... Nvidia then decided to make their GPU work as a CPU...

AMD went the heterogenous route because they had both the CPU and GPU so it was a natural planned progression from Llano to MI300 and Genoa... And now with multiple enterprise and desktop accelerators with Xilinx and Pensando they have a full stack for every market...

And a HUGE surprise is how many devices are coming out with the mobile APUs in desktop configs.. I bought one from Minisforum with a 6900HX and it's smaller than a speaker and just as fast as a 5700X with an RX6300... And there will be a full line with the Zen 4 by back to school in September... With the release of 7950X 3D they have the gaming crown back and also have the efficiency crown...

And sometime this year we will see close to 2ExaFLOPs with the El Capitan super, an Edge appliances using Pensando, telco with end to end encryption and 128C web servers...

[stockroach]

@Autosoft "AMD is the most solid company for compute going forward" What a bunch of BS. AMD is the biggest risk going forward is more likely.
1) After 5 3/4 years since EPYC first launched and major screw ups from Intel, AMD has amassed less than 20% in all three markets that they compete in.
2) Console business is in the decline for the next two years. That will impact GPU and CPU sales
3) Intel now has the same share in dGPU as AMD after only two full quarters of shipments.
4) AMD launched a 1/2 baked Genoa product so they can say they met the launch dates. Look no further than Frontier Supercomputer for issues and delays. MI300 will be a low volume SKU for El Capitan.
5) Intel roadmap is much stronger than it was 5 years ago. They will start taking back revenue in all three markets.
6) AMD way behind in AI

You make a great cheerleader though

[RUBYRUBY3]

@stockroach
"3) Intel now has the same share in dGPU as AMD after only two full quarters of shipments."
www.tomshardware.com/...
"No, Intel Didn't Actually Sell More GPUs Than AMD, Firm Overcounted 60,000 GPUs"
"Jon Peddie himself was kind enough to warn us that JPR's unit shipment estimates were based on Intel's recent financial report and ASPs and could be inaccurate. Indeed, they were, and Intel did not sell as many standalone GPUs as AMD last quarter."

PS4 sold 117 million PS5 is only at 32 million no replacement till 2027 so many years of sales to come. Space opened on 7nm now as AMD moved to 5nm.

"2) Console business is in the decline for the next two years."
www.gamespot.com/...
"PS5 Sales Climb To 32M, Which Is Millions Behind Where PS4 Was Over Same Period Of Time"
"For comparison, the PS4 sold more than 37 million units over the same period of time since launch, so the PS5 is lagging pretty far behind that older console."

117.2 million
Best-selling game consoles
Platform Type Units sold
PlayStation 4 # Home 117.2 million

Congrats on getting through comment without saying fanboy once.

[OU812EH?]

@Autosoft Looks like Intel is looking to help also with its usual broken promises.

www.servethehome.com/...

[katmandu100]

Interesting info.

[qwerty11]

This will be a boring stock the coming years. Will meander between $70 and $90 for a long time...

[PatienceDiscipline]

@qwerty11 how so?

[Blowback2]

‘Shares have gained 22% year-to-date, drastically underperforming rival Nvidia (NVDA), which has gained more than 50% on the backs of hype surrounding artificial intelligence.’…..I’ll gladly take the 22% without the ‘hype’ (which usually has a short lifespan).

[Larry Hall]

Don't know when exactly or how many shares, but I like the move and the impact. Long AMD at about 6.5% portfolio share. Might be required to buy more now..

[Mayo Man]

I don’t think she needs advice from those guys

[DomL]

going to need it once Intel wipes the Fab floor with them!

[RUBYRUBY3]

@DomL
www.cnbc.com/...
"Intel reported a disastrous quarter in January that included a weak 2023 outlook. The company said it expects a 40% year-over-year decline in sales in the March quarter."

Let the wiping begin!!! INTC shareholder tears that is.

[rubble]

@DomL Really? Keep talking to the mirror- "I'm Good Enough, I'm Smart Enough, and Doggone It, People Like Me!"

[Autosoft]

@DomL

To have so many comments, it seems like you would be more aware of what's going on at Intel... They're floundering on multiple fronts because Nvidia has too strong a foothold in pure GPU Compute because of CUDA where AMD is also struggling but at least they have a full TensorFlow stack now with ROCm and Xilinx/MI300 they can offer the entire appliance including P4 processing for network traffic...And they can't seem to get anywhere with the process roadmap... We were expecting volume Intel 4 by now and Sapphrie is the first Intel 7... They AGAIN launched a fab initiative at it seems to have fizzled out again due to process problems... And Intel can't afford to lose share because it'll begin to mean fab lines sitting idle which costs money... I didn't root for this to happen but it is Karma with their years of abuse in the market...

[Chris Lau]

Third Point is riding the🚀 AMD rocket ship🚀 at $55-$65.
The AMC 🚀 rocket ship at $4.00.

[igli1234]

@Chris Lau nice I am in from 16.5 and 29

[state_of_affairs]

@Chris Lau AMD is not comparable to AMC.

[DeltaCherry]

yawn! a new fad on wall street. not going to end well. soon, you will hear of activists taking positions against activists. LOL! They have nothing better to do.

[dandroidz]

So the activist took a position at some other point in 2022-2023, when shares were down [maybe $58-65?] and the shares are responding upwards because of this delayed news? The position could have been taken 6 months ago

[grewalg87]

@dandroidz Exit liquidity.

[SPXTrade]

What price did they take the stake?

[DrWhatNoName]

@SPXTrade Between 55-65

[tipper 1]

@DrWhatNoName
Just like me, smart guy Mr. Loeb

[DrWhatNoName]

@tipper 1 Unfortunatly, I mistraded that range. I sold 55 puts with the intention of being assigned. But AMD didnt got that low. then shot up to 70 :(

[Natturner1966]

He could have picked a number of chip stocks but he picked $AMD.

Bullish!!