AMD(US:AMD) First Shanghai Securities·2024-08-05 09:31Investment Rating - The report assigns a "Buy" rating with a target price of 165.00 HKD, indicating a potential upside of 24.49% from the current stock price of 132.54 USD [2][3]. Core Insights - AMD's revenue for Q2 2024 reached 5.8 billion USD, a year-on-year increase of 8.9%, slightly above Bloomberg consensus expectations of 5.7 billion USD [1]. - The company has raised its revenue guidance for the MI300 series to 4.5 billion USD for the year, driven by strong AI demand and a significant increase in data center revenue, which grew by 114.5% year-on-year to 2.83 billion USD [1][2]. - AMD's client business is expected to see double-digit growth in H2 2024, supported by a new wave of PC upgrades and the demand for Ryzen desktop CPUs [1][2]. Financial Summary - For the fiscal year 2024, total revenue is projected to be 26.22 billion USD, reflecting a year-on-year growth of 15.6% [4]. - Non-GAAP net profit for 2024 is estimated at 5.68 billion USD, with a Non-GAAP EPS of 3.5 USD [4]. - The company anticipates a compound annual growth rate (CAGR) of 33.6% for revenue and 63.6% for Non-GAAP net profit from 2024 to 2026 [2][4]. Segment Performance - Data center revenue is expected to grow significantly, reaching 13.48 billion USD in 2024, with a year-on-year growth rate of 107.5% [6]. - The gaming segment has faced challenges, with a year-on-year decline of 59.0% in revenue, while the embedded business showed a slight recovery with a 2% increase quarter-on-quarter [2][6]. - The MI300 series is projected to have a production capacity of 550,000 units in 2024, generating an estimated revenue of 5.5 billion USD [1][5].