New York, Sep­tem­ber 21, 2020 — Moody’s Inves­tors Ser­vice (“Moody’s”) has com­ple­ted a peri­odic review of the ratings of Advan­ced Micro Devices, Inc. and other ratings that are asso­cia­ted with the same ana­ly­ti­cal unit. The review was con­duc­ted through a port­fo­lio review in which Moody’s reas­ses­sed the appro­pria­ten­ess of the ratings in the con­text of the rele­vant prin­ci­pal methodology(ies), recent deve­lo­p­ments, and a com­pa­ri­son of the finan­cial and ope­ra­ting pro­fi­le to simi­lar­ly rated peers. The review did not invol­ve a rating com­mit­tee. Sin­ce 1 Janu­ary 2019, Moody’s prac­ti­ce has been to issue a press release fol­lo­wing each peri­odic review to announ­ce its completion.

 

This publi­ca­ti­on does not announ­ce a cre­dit rating action and is not an indi­ca­ti­on of whe­ther or not a cre­dit rating action is likely in the near future. Cre­dit ratings and outlook/review sta­tus can­not be chan­ged in a port­fo­lio review and hence are not impac­ted by this announce­ment. For any cre­dit ratings refe­ren­ced in this publi­ca­ti­on, plea­se see the ratings tab on the issuer/entity page on www.moodys.com for the most updated cre­dit rating action infor­ma­ti­on and rating history.

 

Key rating con­side­ra­ti­ons are sum­ma­ri­zed below.

 

AMD’s Baa3 seni­or unse­cu­red reflects the company’s strong per­for­mance out­look, dri­ven by con­tin­ued design wins, mar­ket share gains, and an expan­ded set of pro­duct offe­rings and cus­to­mers. With recent new pro­duct laun­ches, we expect strong reve­nue growth in 2020 dri­ven by new desk­top, mobi­le, ser­ver, and gra­phics chips, and the launch of semi-cus­tom reve­nue rela­ted to game con­so­les in the second half of 2020. Moody’s pro­jects AMD’s alre­a­dy low levera­ge will con­ti­nue to decli­ne while the company’s liqui­di­ty pro­fi­le remains excel­lent. Key chal­lenges include the abili­ty to con­sis­t­ent­ly exe­cu­te pro­duct and tech­no­lo­gy tran­si­ti­ons and with­stand com­pe­ti­ti­on from strong com­pe­ti­tors such as Intel and Nvi­dia remain key challenges.

 

This docu­ment sum­ma­ri­zes Moody’s view as of the publi­ca­ti­on date and will not be updated until the next peri­odic review announce­ment, which will incor­po­ra­te mate­ri­al chan­ges in cre­dit cir­cum­s­tances (if any) during the inter­vening period.

 

The prin­ci­pal metho­do­lo­gy used for this review was Semi­con­duc­tor Indus­try published in July 2018. Plea­se see the Rating Metho­do­lo­gies page on www.moodys.com for a copy of this methodology.

 

This announce­ment appli­es only to EU rated and EU endor­sed ratings. Non EU rated and non EU endor­sed ratings may be refe­ren­ced abo­ve to the ext­ent neces­sa­ry, if they are part of the same ana­ly­ti­cal unit.

 

This publi­ca­ti­on does not announ­ce a cre­dit rating action. For any cre­dit ratings refe­ren­ced in this publi­ca­ti­on, plea­se see the ratings tab on the issuer/entity page on www.moodys.com for the most updated cre­dit rating action infor­ma­ti­on and rating history.

 

Richard J. Lane
Seni­or Vice President
Cor­po­ra­te Finan­ce Group
Moody’s Inves­tors Ser­vice, Inc.
250 Green­wich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Cli­ent Ser­vice: 1 212 553 1653

Len­ny J. Ajzenman
Asso­cia­te Mana­ging Director
Cor­po­ra­te Finan­ce Group
JOURNALISTS: 1 212 553 0376
Cli­ent Ser­vice: 1 212 553 1653

 

Releasing Office:
Moody’s Inves­tors Ser­vice, Inc.
250 Green­wich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Cli­ent Ser­vice: 1 212 553 1653