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Best tech/finance blogger on TipRanks. Alex Cho is ranked 7th among all financial bloggers, with a sector focus of technology stocks. The research he publishes captures the long-term growth potential of tech franchises, and market valuation. His research recommendations over the span of five-years has averaged into an annualized return of 19.3% across 392 ratings of which 66% were successful. Over his years of publishing, Alex Cho has been an indispensable source of information for an investment minded audience, which is why his lifetime viewership has exceeded ten million in total since 2012, across various media platforms. Furthermore, he’s frequently cited in various local business journals across the United States, and is frequently tagged with the “in-depth” designation on Google News for his public articles. The quality of his research is well known, and is well-respected which is why he’s frequently cited by other authors, journalists, bloggers and experts. Alex Cho was a former founding partner of Alexander & Cohen Capital Management, has worked as a consultant for mid-stage tech companies looking to raise capital or form an exit strategy, with the most recent consultation billed to a client that was generating revenue of $10 million+ in the web domain/registrar segment. Alex Cho is frequently invited to interview members of management at various Fortune 500 tech companies’ due to his outstanding media credentials, and credibility. Furthermore, he frequently attends various tech media events at the request of the event organizers. Alex Cho has a great relationship with Wall Street and Silicon Valley, as well. In the Venture Capital Space, he has sources that are inclusive of VC Partners, and independent research from PitchBook, Mercury Data, eMarketer, MergermarketGroup, and so forth. Anyone facing the public with investment related material needs quality sources, which should be inclusive of insights from Private Equity and various sell-side institutions and debt rating agencies as well (Standard & Poor’s, Fitch, & Moody’s). Alex Cho publishes with the support of Bank of America Merrill Lynch, Morgan Stanley Americas, Royal Bank of Canada Capital Markets, United Bank of Switzerland AG, Barclays Americas, Goldman Sachs, J.P. Morgan, Credit Suisse AG, PiperJaffray, Wedbush Securities, Oppenheimer & Co., Nomura Securities, BMO Capital Markets, Raymond James, Pacific Crest, SunTrust, Mizuho Securities, Deutsche Bank and Canaccord Genuity. Alex Cho attended ASU via the MAPP program with a 3.76 GPA in business-finance. The genius behind Cho has less to do with his academic accomplishments, but rather his ability to navigate, adapt, and improve the quality of his work through all the activities he has engaged. In the past year, Alex Cho has launched a new marketplace service referred to as Cho’s Investment Research. To learn more about this service, or to receive article notifications, be sure sure to subscribe. We provide frequent updates via our Blog Posts, which goes out to our subscribers.

Advanced Micro Devices (AMD) Stock Is Back in a Big Way


Advanced Micro Devices (AMD) has consistently gained CPU share since the launch of Ryzen series CPUs, and indications from various sell-side checks suggests that AMD has gained market share versus Intel in laptops, and Chromebooks. However, GPU revenue might take a while to recover until the full roll-out of Vega series GPUs with Turing capable features like Ray-tracing, and AI similar to the RTX line-up for Nvidia series cards. Despite the choppy indications when pertaining to financial results, AMD is recovering from a really low base of revenues when compared to peers, and with a steady slate of products anticipated to launch in the next two-quarters, the sentiment tied to the stock could still improve from here.

Despite the mixed-implications for market share gains for AMD in Q1’19, there were a number of notable positives from a report released by Susquehanna analyst Christopher Rolland: “AMD takes share in notebooks and Chromebooks as Intel shortages likely accelerate share gains. AMD laptop share was up +3.9% quarter-on-quarter to 11.7% in Q1’19! In Chromebooks, AMD goes from almost zero market share to 8% as we believe Intel fails to supply the low-end of the market. AMD desktop share remains flat in the quarter at 15% as we wait for 7nm in 2H19. Positive AMD, negative INTC. GPU attach rate in desktops now 33% as gaming desktops increased in Q1’19. The Q1’19 GPU desktop attach rate was 33%, up +4% quarter-on-quarter, as gaming desktops increased during the quarter. Gaming desktops now make up 25% of PCs in our study (up from 20% in Q4’18). Nvidia benefited modestly from share gains in these gaming desktops (now has 76% share). Positives for NVDA and AMD.”

It seems like AMD is gaining the bulk of its CPU share in the notebook market, whereas desktop comparisons for market share remained flat between AMD and Intel. AMD’s positioning in graphics have improved modestly, as there were more gaming PCs purchased in Q1’19 than in the prior quarter. This might offset some of the cryptocurrency worries, as we’ve returned to a more normal GPU environment for desktops where gaming was the primary end-market for high performance desktop PCs. However, with the price of bitcoin recovering from $3,000 all the way up to $5,000 it wouldn’t be surprising to anticipate another crypto-mining fueled buyout of various graphics cards as new hashing algorithms, or new hashing opportunities begin to materialize in another inflated cryptocurrencies market (this could take a number of years to develop), hence the return of PC gaming demand helps.

AMD’s pricing is expected to remain flat across its CPU line-up, so revenue from the computing and graphics segment will be driven by AMD’s CPU volumes, as opposed to pricing improvements. Pricing for Ryzen processors have contributed to ASP increase, but based on the average ASP across the line-up, pricing is expected to drop from $209 to $205 representing a 1.9% drop in pricing.

There’s a decent likelihood that the gains from just notebooks and Chromebooks will translate to material upside in financial results, as the survey data indicates that the key area AMD was able to deliver shipment growth in Q1’19 was the Notebook segment where 2018 shipments of global notebook PCs were 162.3 million according to Credit Suisse estimates. So, if AMD’s market share of 11.7% were to stay consistent or improve modestly, AMD could sell 19 million notebook CPU units in 2019. Keep in mind, AMD’s market share averaged 5% in 2018 in the notebook segment or 8 million units in 2018, so this would imply that AMD’s notebook revenue will grow significantly versus prior-year.

Overall, the global PC market is expected to slow this year. Gartner and IDC both reported a 4.6% drop in global shipments to 58.5 million units in Q1’19. This paints some more headwinds for Nvidia and Intel than it does AMD, as Notebook market share gains offset the declines in the overall PC market. Whereas Nvidia and Intel could offset some of the softness tied to PC shipments due to pricing higher, this might not produce as much in the way of financial upside as investors are hoping for, but it does diminish the negatives of a weakening PC market.

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