Advanced Micro Devices Poised for EPYC Revenue Growth of 60% in 2022; $130 FVE Maintained

Narrow-moat Advanced Micro Devices reported its 10th consecutive quarter of double-digit revenue growth thanks to PC, server, and game console strength, as well as six weeks of revenue from recently acquired Xilinx. We remain most impressed with the firm's execution on its product roadmap, particularly with its EPYC server CPU family continuing to gain share at Intel's expense. Management guided 2022 revenue growth of 60%, which includes Xilinx as well as continued momentum in server, game console, and PC segments. Shares rose about 7% during after-hours trading but are still at a discount to our unchanged $130 fair value estimate. Consequently, we think the firm's shares look attractive at current levels.