Rande,
Some thoughts on AMD.
It sounds as if we have a consensus that AMD is poised for a move.
INTC is currently valued at $321B and has over $30B in revenue.
AMD has a market cap in the neighborhood of $8B and has just over $2B in revenue.
That is a price to sales of about 11 (INTC) compared to 2 (AMD) and a PE of about 50 (INTC) compared to 23 (AMD).
Now, one thing that I am lacking in my knowledge (DD) of the two companies is the technology comparison. However, right now, the name of the game is growth and INTC revenues will not grow as expected. So far, all signs point to continued positive growth for AMD. IMO, the technology aspects are very similar - so similar that I feel it is really negligible from the perspective of gaining market share.
Remember, many times the initial industry giant is not the winner in the long run. My knowledge of the semi conductor industry and the two companies in general is too rudimentary for me to suggest that AMD will someday overtake INTC. ---
- However, I am posing this question to the thread and would like to hear both sides: Does AMD have what it takes to gain more than 50% market share, say in the next 5 years?
Many, many factors go into attempting to answer such a question. But for those of us who recognize an $8B company with $2B in revenue and profit growth of 21% over the next 5 years as a tremendous opportunity, we need to consider such a possibility.
Regardless of your opinion on the above question, I think that most of us agree that at $8B, AMD could represent anything from a 2 to a 20 bagger in the next year or two!
Paullie |
