AMD Just captured 23% of the cell phone market in one deal.

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AMD captures 23% of the cell phone market in a deal with Samsung.

Nvidia is sued and AMD settles a lawsuit.

Our play on AMD.

AMD (AMD) ran out of steam recently as the stock had run out of short-term catalysts. With the massive run up and the post earnings slump, little was left to keep the stock rising day after day. Yet, after the recent trade war related decline, it’s – now – time to buy AMD.

The AMD Samsung Deal – Bigger Than Most Realize

I do not think most investors realize the extent of the AMD-Samsung deal. Samsung is not playing around, rather they are going all in with AMD on the phone front — to the tune of AMD earning $100 million in revenue for 2019 per the Q2 earnings call. Lisa Su:

“On the Samsung side, it’s a multi-year, multi-generational deal that we have across our graphics portfolio for mobile. In terms of 2019, the revenue is approximately $100 million, that would be added. This was not originally in our guidance and it offset some of the headwinds that we talked about in semi-custom and in China. As it’s not pure IP though, so the way you should think about it is, there’s some specific development expenses that are being that are part of that deal. And so those will be part of the COGS portion of that.”


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