AMD(US:AMD) Guohai Securities·2024-11-06 11:17Investment Rating - The report assigns an "Overweight" rating to AMD, marking the first coverage of the company [1][16]. Core Views - The overall performance of AMD is in line with expectations, with Q3 revenue of $6.82 billion, representing a year-over-year increase of 18%, and a Non-GAAP net profit of $1.5 billion, up 33% year-over-year [3][7]. - The data center business has shown significant growth, with revenue reaching $3.55 billion, a 122% increase year-over-year, and the guidance for data center GPU revenue has been raised from $4.5 billion to $5 billion for the year [4][13]. - The client segment continues to perform well, generating $1.88 billion in revenue, a 29% year-over-year increase, driven by strong demand for AMD's Zen5 series CPUs [14][16]. Summary by Sections Recent Performance - AMD's Q3 results met expectations, with revenue of $6.82 billion and Non-GAAP net profit of $1.5 billion, both showing strong year-over-year growth [3][7]. - The guidance for Q4 revenue is set at $7.5 billion, slightly below market expectations [4][12]. Business Segments - The data center segment has experienced substantial growth, with a 122% year-over-year increase in revenue, primarily due to strong demand for AMD's Instinct GPUs and EPYC CPUs [13][14]. - The client segment also showed robust growth, while the gaming and embedded segments faced challenges, with gaming revenue down 69% year-over-year [14][15]. Financial Projections - Revenue projections for AMD are estimated at $25.7 billion, $30.9 billion, and $37.4 billion for the fiscal years 2024, 2025, and 2026, respectively, with Non-GAAP net profits expected to be $5.1 billion, $6.6 billion, and $8.0 billion [16][19].