AMD暂时安全？

AMD has over $2 billion of debt with stated interest rates of 6.75% or more. While none of the company's main issues are due until 2019 at the earliest, these rates are quite high. With the Federal Reserve potentially not raising rates in 2015, AMD should explore the possibility of refinancing some of its debt. With the extra cash from the joint venture, the company has shored up its balance sheet quite nicely. If AMD could perhaps lower its interest rate on these notes, and perhaps push their maturity out a bit, it would make investors much more comfortable. Even getting a one percentage point decline in interest for these four debt issues would save the company over $20 million in pre-tax interest expenses.

As for AMD's stock, shares have rallied quite a bit off their yearly lows. Seen in the chart below, the stock recently broke above its 50-day moving average, and this earnings report was enough to hold that key technical level for now. I do think we'll see some shorts continue to cover their positions as the cash infusion has bought the company some more time. If the stock is able to hold the 50-day until the line starts to rebound, we may see AMD's shares rally and test the 200-day, probably around the $2.25 level.

(Source: Yahoo! Finance)

Because of its revenue troubles and murky financial situation, AMD trades at an extremely depressed valuation. As of Friday's close, shares were going for less than 0.4 times expected 2016 revenues. As a comparison, Intel (NASDAQ:INTC) goes for roughly 2.7 times, with Qualcomm (NASDAQ:QCOM) around 4 times. I'm not arguing that AMD is worth either of those valuations, but even an 80% discount to Intel on price-to-sales would make AMD worth about $2.80 a share. If AMD is able to improve its revenue situation and the turnaround gets back on track during 2016, I don't think that valuation is out of the question, especially if we get a lot of short covering.

In the end, AMD's quarterly results were not spectacular, but expectations weren't exactly high either. The company continues to post sizable revenue declines, large losses, and tremendous cash burn. The Chinese joint venture will provide a much-needed cash infusion, buying the company more time as it looks to 2016 and the launch of Zen. While AMD is not out of the woods just yet, those that are bearish have to admit that the company isn't going away as quickly as previously thought.