Advanced Micro Devices Inc (AMD)

[cdiddy01]

Rev: $1.42bln vs $1.45 estimate. EPS: $.08 vs $.08 estimate. Stock is up in AH.

The big takeaway is the doubling of EPYC unit sales to datacenters and the ramp up of 7nm coming mid 2019. This should be a huge boon for AMD if they can continue this growth, especially in the $20+ billion datacenter market with their new 7nm ROME CPU launching soon.

Also to note is their new wafer amendment with Glofo: "The amendment provides AMD full flexibility for wafer purchases from any foundry at the 7nm node and beyond without any one-time payments or royalties." This will allow them to maintain their manufacturing advantage without any substantial penalty going forward..