www.nasdaq.com/articles/...md-and-1-reason-to-sell-2021-08-16
"..The financials seem to reflect these technical successes, helping to make AMD a top growth stock to buy right now. For the first six months of 2021, revenue of $7.3 billion surged 96% compared with the first two quarters of 2020. Revenue growth, along with a slower increase in operating expenses, played a role in net income almost quadrupling to just under $1.3 billion. Also, while AMD may not maintain this pace as society reopens, the company still expects 60% overall revenue growth in 2021 compared with the prior year.
Despite these massive increases, AMD's P/E ratio has steadily dropped. Its multiple of 38 is its lowest valuation since Su took over as CEO. It also remains significantly cheaper than Nvidia, whose P/E ratio now approaches 95.This likely means the stock has failed to price in the company's growth. AMD has only increased by more than 25% over the last 12 months, far behind Nvidia's growth of more than 80% during that time.
However, this is not as negative as its dependence on Taiwan Semiconductor (TSMC). AMD does not own fabs, meaning it depends on TSMC for its production..."