Here I am going to attempt to value Advanced Micro Devices(AMD) the producer of computer processing chips.
Is Advanced Micro Devices fairy valued by the market? At a trailing Price/Earnings ratio of 238.01 and Price/Sales ratio of 8.81 by all conventional value estimates Advanced Micro Devices is overvalued. However, Advanced Micro Devices(AMD), with its cheaper than Intel offering of computer chips, has turned lately into a play on the cryptocurrencies boom. Many cryptocurrency miners prefer Advanced Micro Devices(AMD)'s processors to power their cryptocurrency mining operations. Basically AMD rides on Bitcoin's and other cryptocurrencies boom with its processors and graphic cards. Since the beginning of 2015 Advanced Micro Devices(AMD) has grown its yearly revenue by around 60% reporting growth of more than 10% each year since 2015.
So is Advanced Micro Devices(AMD) undervalued or overvalued? Basically, it is a binary outcome. If the cryptocurrency boom turns into an ordinary bust Advanced Micro Devices(AMD) will crash as well. But if in the long run Bitcoin and other cryptocurrencies triumph and turn into a real means of exchange facilitating payments and lowering the price of transnational money transfers, than Advanced Micro Devices(AMD) is significantly undervalued. I would say that after the coming economic recession and expectant Advanced Micro Devices(AMD)'s fall in price the company would become significantly undervalued. Currently, Advanced Micro Devices(AMD) could go up even more, but an eventual large price fall will come sooner rather than later.
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Petar
Vladimirov Posledovich is not liable for any investment losses incurred
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Respectfully yours,
Petar Posledovich
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