Samsung Securities holds exclusive IR meeting with AMD... "Unveils strategy to intensify Intel hunting"

AMD Stock Manager: "Focus on the Company's Growth Story Rather Than Market Conditions"
Samsung Securities YouTube Differentiates Content by Introducing Interviews with Stock Managers of Promising Overseas Companies

Jang Hyo-seon, Head of Global Stocks Team, Lee Jong-wook, Senior Research Fellow, and Moon Junho, Senior Researcher at Samsung Securities, appearing in the YouTube video "Mr. Overseas Stocks" at the Samsung Securities studio.

[Asia Economy Reporter Song Hwajeong] Samsung Securities announced on the 25th that, through a discussion with the stock manager of the U.S. semiconductor company Advanced Micro Devices (hereafter AMD), the 'Intel hunt' is expected to intensify further due to the effects of the Xilinx acquisition.

AMD, a U.S. semiconductor company competing with Intel in the server CPU market, has experienced explosive stock growth of about 30 times over approximately five years since 2015. In the second half of this year, AMD suddenly announced the acquisition of Xilinx, the No. 1 FPGA semiconductor company mainly used in the telecommunications and network sectors.

As the largest merger and acquisition (M&A) deal in semiconductor industry history has drawn attention to the synergy effects between the two companies, Samsung Securities disclosed the contents of an exclusive discussion with AMD's stock manager.

According to AMD's stock manager, although there are concerns in the market about synergy effects because AMD and Xilinx have different core businesses, it was explained that this will rather serve as an opportunity to penetrate both markets and cross-sell based on the influence each holds in their respective business areas.

In particular, AMD's entry into the telecommunications market is expected to be rapid. Since telecom companies still predominantly use servers equipped with Intel CPUs, competition between Intel and AMD is expected to intensify.

They also addressed market concerns about AMD's future growth following Intel's poor performance announcement in the third quarter.

Junho Moon, a researcher at Samsung Securities, said, "Intel, as an industry leader, has a well-distributed sales ratio among enterprises, governments, and cloud sectors, whereas AMD has a low sales ratio in enterprises and governments but a high ratio in cloud sales." He added, "Intel's recent poor performance was due to a sharp decline in enterprise and government sales, but AMD is free from such impacts due to its high cloud sales ratio and is in a position to take over Intel's customer base, so AMD expects to continue high growth annually."

In fact, while Intel recorded an average annual EPS (earnings per share) growth rate of 19% over the past three years, AMD showed a growth rate of 153%, maintaining high growth.

Researcher Moon continued, "Through AMD's stock manager, we received an update that contracts with large cloud companies are continuing into the fourth quarter," adding, "Considering AMD's position as a latecomer, it is important not only to forecast sales or stock prices based on industry conditions but also to focus on the company's growth story based on AMD's inherent strengths."

The discussion between Samsung Securities and AMD's stock manager can be viewed in Samsung Securities' YouTube live broadcast content 'Asked Directly to the Stock Manager.'

'Asked Directly to the Stock Manager' is content that introduces future industry conditions and stock price forecasts based on discussions between Samsung Securities analysts and the stock managers of the respective companies. The first episode, related to AMD, aired on the 18th.

Starting with AMD, Samsung Securities plans to continue interviews with stock managers of promising overseas companies that have attracted the attention of foreign investors.

Hyo-seon Jang, head of Samsung Securities' Global Stock Team, said, "Our industry-leading network, established through partnerships with global securities firms such as Citigroup in the U.S. and CITIC Securities in China, forms the foundation of this service." He added, "In the untact (non-face-to-face) era, as opportunities to deliver diverse information vividly have expanded, we will do our best to provide differentiated services."

Samsung Securities' 'Asked Directly to the Stock Manager' can be viewed live every Wednesday at 4 p.m. during 'Mr. Overseas Stocks,' and the full video is uploaded to Samsung Securities' YouTube channel for viewing anytime after the live broadcast.

Video investment information such as 'Mr. Overseas Stocks' can be found on Samsung Securities' YouTube channel, Samsung POP.

Samsung Securities recently reached 110,000 YouTube subscribers. In addition to simple stock information, it provides asset management video content usable by beginners to high-net-worth individuals, including products and services, tax and real estate consulting, meeting diverse investor demands. Through planned content such as 'The Lonely Investor,' 'Stock Beginner's Dictionary,' and 'ETF Restaurant,' which explain financial knowledge easily, as well as efforts like the 'Overseas Stocks Untact Conference' held non-face-to-face during the Chuseok holiday, Samsung Securities increased its subscriber count from about 5,000 at the end of last year to 20 times that in 11 months, ushering in the era of 110,000 subscribers.