What Happens To AMD’s Valuation If Embedded & Semicustom Revenue Declines To $2 Billion In 2016?

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AMD: Advanced Micro Devices logo
AMD
Advanced Micro Devices

We estimate AMD’s Embedded and Semicustom revenue will increase marginally (~5%), to $2.2 billion, in 2016. If revenue from the division decline by 5% instead, then our valuation for the company will decline by more than 20%. Factors that can lead to lower revenue from the division this year –

>> Delay in generating revenue from new semicustom deals

>> Decline in unit price of game consoles, which result in lower revenue for AMD

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Have more questions about AMD (NYSE:AMD)? See the links below:

>> Embedded & Semi-Custom, PC and Server Processors & Graphics: What’s AMD’s Revenue and EBITDA Breakdown?

>> By What Percentage Did AMD’s Revenue & EBITDA Grow In The Last 3 Years?

>> How Has AMD’s Revenue And EBITDA Composition Changed Between 2012 And 2015?

>> AMD’s Revenue & EBITDA Growth in The Next 5 Years: Trefis Estimate

>> AMD’s Potential Valuation In 2020

>> How Much Revenue Can AMD Earn From Its Server Business BY 2020?

>> How Much Revenue Can AMD Add By Increasing Its GPU Market Share?: Trefis Estimate

>> How Is AMD’s Revenue & EBITDA Composition Expected To Change In The Future?

>> AMD: The Year 2015 In Review

>> What’s AMD’s Fundamental Value Based On Expected 2016 Results?

>> Where is AMD’s 2016 Revenue Growth Expected To Come From?

>> How Important Is the PC Market For AMD’s Business?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for AMD

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