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The bottom line of the price war: there is an opinion that AMD does not have enough money

American Technology Research analyst Doug Freedman concluded that AMD needs to raise funds within the next six months. Quoting, Friedman admitted that he was experiencing “growing concerns about the company’s cash flow.”.

The analyst noted that there are rumors of interest in AMD from companies engaged in operations with so-called “private shares” (usually this term covers the investment business associated with the acquisition of blocks of shares that are not listed on the stock exchange).

It is with these rumors that Friedman explains the unexpected strengthening of AMD shares in recent trading. In his note to investors, the analyst noted that he had no doubts about the availability of funds from such buyers, but did not see how these funds could affect the assessment of AMD’s current position. AMD Stock Price on the Day in question is up 2.4% by the close of trading.

Recall, at the end of 2021, AMD reported losses in the amount of $ 166 million. Mainly, this result is explained by the purchase of the manufacturer of graphics solutions ATI Technologies. At the end of the year, AMD was estimated at 1.54 billion. Doll. in cash and cash equivalents, which is slightly less than 1.8 billion. Doll. a year earlier. Over the year, the company’s shares fell by about 63%, which clearly expresses doubts among investors about the outcome of the “price war” with a larger competitor, Intel.

In addition, according to Friedman, the return of Michael Dell as the head of Dell is not a good sign for AMD, as it is known about the close ties between Del and Intel.

AMD did not officially comment on the analyst’s statements.

Source: AP


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