Advanced Micro Devices Investor Presentation — July 2021

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See Last Page for Key Disclaimers & Disclosures

The Abstract Portfolio

@ Marketplace by Seeking Alpha EARNINGS REPORT – Q2 FY2021

Compan y Post - Earnings Rating

Advanced Micro Devices Bullish

Ticker: AMD (NASDAQ ) Relative Risk: Low

Sector | Industry : Technology | Semiconductors Portfolio Pick? Yes

Trends: Computing Demand Earnings Reaction: Bullish

Sourc e: Charts and Raw Data from Koyfin

AMD posted its Q2 2021 Earnings. It beat revenue and earnings estimates , and

raised FY2021 guidance to an expected 60% YoY sales growth. The stock price

saw post -earnings next day reaction of +7.6%.

While there’ve been concerns regarding supply constraints for AMD and the rest

of the chip industry, the company has incrementally im proved its supply

situation on a quarter over quarter basis. This has resulted in substantial

growth, ~99% YoY on Q2 revenues. Given the company’s technological lead

across most of its product portfolio and the supply/demand dynamics, AMD has

recorded a 23.1% Free Cash Flow Margin for the quarter. The Gross Margin has

also improved to 48% by 350bps on a YoY basis. Execution appears to be strong,

and AMD is finally contributing meaningfully to the notoriously large data

center market. In Q2, data center revenue contributed ~20% of the top line and

the CEO believes that the sales mix will increase in the second half of the year,