Two prominent analysts have confirmed that AMD is being negatively affected by GlobalFoundries supply issues.
“There have been concerns with GF supply issues and AMD’s capacity to satisfy demand,” Vijay Rakesh and Mark Kelley of Sterne Agee wrote in an industry note obtained by TG Daily. “While AMD got its Llano-Bulldozer wins right, the company is plagued by GF supply issues.”
According to Rakesh and Kelley, AMD now sees SepQ revenues increasing 4-6% Q/Q, versus prior up 10% q/q and GMs lower at 44-45% vs. prior 47%.
“While this is definitely a disappointment, and two steps back on its turnaround, we believe AMD still has a compelling portfolio of notebook Llano and Bulldozer products, with OEM demand.
“Given the execution issues investors will put AMD in the penalty box. Nonetheless, we still believe AMD is an attractive opportunity, as it still has solid OEM demand for its NB-Server products and the supply issue should be a near-term issue.”
The two analysts also noted they were optimistic about the long-term outlook for the corporation.
“With a new leader at the helm, we believe AMD will be able to re-focus on achieving its roadmap to smaller nodes, increase market share and expand margins… [However], we believe the misstep could also provide a near-term upside opportunity for Intel… [Clearly], AMD needs to fix the GF supply chain, else it could be an undoing.”
