GM
General Motors Company
stock NYSE

People think these manufacturers build their own products when they largely don’t.
I have built automation cells that support both Tesla and every other manufacturers parts in back to back shifts.
Many of these tiered suppliers when you walk their floor are a large mixture of every manufacturer you can think of.
In some cases like Toyota or “Toyoda” they even build parts for companies like ford, GM, and Tesla. (Coolant, Fuel, and evap lines in particular).

I know but Server CPUs have a 1000 bps gross margins over corporate GM. Lisa upgraded AMD view on AI server growth on thursday so maybe they will update their GM estimate soon.

There is a very good piece of research by Tim Acuri from UBS one of the most respected analyst on Wall Street. He updated his AMD 2027 eps to 19$ after the AI event. Current consensus is around 14 $. His upgrade is based on the much better gross margins of the EPYC server business line which is 1000 bps of 10% above the corporate average. The surge in AI agentic will have two effects. One is of course much higher revenue but also much better gross margins. He argues that gives a lot of leeway for AMD to price its MI500 at a lower price to get market share. I see the argument but I dont think that AMD needs to do that as compute is scarce. One can see the difference of having a company with high growth with increasing gross margins (AMD) and one that is growing also stronglyy but is already at extreme level of profitability (Nvdia). The memory makers have witnessed a surge in GM and a surge in sales which led to amazing profitability. Of course this profitability of the memory makers are not sustainable longer term as they are basically commodity products that are beneffiting from an extraordinary imbalances. This is the multiple effect that could lead us to 800 shortly. Higher GM + Higher unit growth = Surging profitability and eps which AT THE END leads to higher multiple. All factors increase resulting in a surge in the stock price.

You telling me GM to the E isn’t in there? 🙄

GM anach