Advanced Micro Devices: What You Need To Know About The Deal With OpenAI (NASDAQ:AMD)

Core Insights - The article emphasizes the importance of generating alpha through independent investment strategies, focusing on a generalist approach across various sectors with potential alpha compared to the S&P 500 [1]. Investment Strategy - The investment strategy involves managing a family portfolio primarily through a Self Managed Super Fund, with a typical holding period ranging from a few quarters to multiple years [1]. - The analyst builds comprehensive spreadsheets that track historical financial data, key metrics, guidance trends, and valuation comparisons with peers [1]. Research Methodology - The research methodology includes monitoring industry news, company filings, and other analysts' coverage, particularly during significant events like CEO changes [1]. - The analyst prefers not to use discounted cash flow (DCF) models for long-term projections, instead focusing on assessing a company's historical performance and key drivers of valuation [1]. Key Performance Indicators - The five key drivers of DCF valuation highlighted are revenues, costs and margins, cash flow conversion, capital expenditures, and interest rates [1].