In this 11-minute video, we dive into a comprehensive financial analysis of two leading semiconductor giants in the United States: AMD and Intel. Understanding the financial health of these businesses is crucial for making informed investment decisions.

Key Highlights:

Revenue Growth: AMD's total revenues for Q3 2023 reached $16.5 billion, showing a remarkable 26% CAGR growth over the past 5 years. In contrast, Intel experienced a -6% CAGR growth during the same period, with total revenues of $39 billion.

Revenue Composition: AMD's revenue structure includes 26% from Data Center, 19% from Client, 29% from Gaming, and 26% from Embedded. Intel's revenue composition comprises 53% from Client Computing, 30% from Data Center and AI, 11% from Network and Edge, and 4% from Mobileye.

Profit Margins: AMD boasts a Gross Profit Margin of 45%, maintaining stability over the past 5 years. However, Intel's Gross Profit Margin has declined significantly, dropping from an average of 52% to 38% in Q3 2023.

Net Profit Margin: Both companies experienced a decline in Net Profit Margin. AMD's Net Profit Margin dropped to 1%, while Intel's fell to -3% in Q3 2023.

Net Profit: AMD reported a Net Profit of $2 million, a drastic decrease from the 5-year average of $8 million. On the other hand, Intel's Net Profit plummeted to -$1 billion from an average of $11 billion.

Financial Strength: AMD's Total Assets stand at $68 billion, with Net Assets of $55 billion and an Equity to Total Assets ratio of 81%. Intel, with Total Assets of $189 billion, has Net Assets of $106 billion and an Equity to Total Assets ratio of 56%.

Liquidity Ratios: AMD exhibits a Current Ratio of 2.19 and a Quick Ratio of 1.61, indicating strong liquidity. Intel's Current Ratio is 1.53, and its Quick Ratio is 1.13.

Operational Efficiency: Both companies face challenges with Inventory Days – 124 days for AMD and 138 days for Intel. Accounts Receivable Days show AMD at 75 days and Intel at 24 days.

Cash Flow Analysis: AMD's Operating Cash Flow (OCF) is $1.3 billion, with a Free Cash Flow (FCF) of $900 million. In contrast, Intel's OCF is $6.8 billion, but FCF is -$12 billion, highlighting potential cash flow issues.

DuPont Analysis: AMD's ROE is 0.5%, primarily driven by a Net Profit Margin of 1%, an Asset Turnover of 0.33, and an Asset to Equity ratio of 1.23. Intel's ROE is -1%, comprising a Net Profit Margin of -3%, an Asset Turnover of 0.28, and an Asset to Equity ratio of 1.79.

Join us in this concise financial exploration as we compare AMD and Intel, providing valuable insights for your investment decisions in the semiconductor industry.
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