AMD Reports Tuesday. One Number Decides Whether 54 Times Forward Earnings Was Ever Defensible.

Advanced Micro Devices (NASDAQ: AMD) reports its second-quarter results on Tuesday, Aug. 4, after the market closes, with an earnings call to follow at 5 p.m. ET. The chipmaker confirmed the date in a press release on its investor relations site in early July.The stock heads into the report at about $476, where it closed Friday, roughly 19% below its 52-week high of $584.73. At that price, the company carries a market capitalization of about $776 billion, and shares trade at about 162 times earnings and about 54 times forward earnings estimates.A valuation like that isn't a bet on the company as it exists today. It's a bet on how fast one segment's revenue keeps growing: data center. I'll say up front that I like the business here more than I like the price.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool