AMD – Market expectations are for Uniform ROA to continue expanding to record-highs, but management has concerns about expectations and technology bets

• Advanced Micro Devices, Inc. (AMD:USA) currently trades at historical highs relative to UAFRS-based (Uniform) Assets, with a 5.9x Uniform P/B, implying bullish expectations for the firm. However, management has concerns about their ability to meet elevated expectations and the potential of long-term technology bets
• Specifically, management may lack confidence in their ability to maintain escalating revenue and net income levels. Additionally, they may lack confidence in their ability to maintain improved operating expense leverage, and may be concerned about blockchain performance falling below expectations in H2 2018. Moreover, they may be concerned about their long-term technology bets and about the on-going sampling of their 7-nanometer GPU. Furthermore, they may be concerned about the percentage of APUS being sold into the desktop channel segment and about progress in their software ecosystem