Advanced Micro Devices (AMD) competes against two tech titans, Nvidia and Intel. The former with graphic cards and the latter with computer processors. AMD has come roaring back over the past several years with its aggressive new architecture for graphic cards and CPUs — along with dynamic and more attractive pricing evidence after posting more than 150% gain and recognized as one the best performers of 2019.
In the last few weeks, AMD has bounced back from its all-time high position, indicating resiliency and potentially trending to higher growth. The growth of AMD highly depends on the acceptance of its latest product line during this crisis. Work-from-home has triggered a spike in demand for chips and other network goods. In addition to that, the need for videogame consoles and graphic chips will also rise to cater to the growth in online gaming enthusiasts. We are looking at an increase in new online gamers that are playing directly from home. In the desktop segment, the company’s market share has been on a steady rise. (12% in Q4 2017 and 18.3% at the end of the last fiscal year). With Ryzen Pro 4000 likely to break the laptop market, I expect AMD to have the strength to push its revenue and market cap in 2020.
AMD stock has been on my watchlist for a few years already, and I have made handsome returns before. Now I am thinking of creating a long term position with AMD, as I do believe they are slowly taking away market shares from Intel and Nvidia with their attractive technology and reasonable pricing. The company has excellent products that can support the growth of supercomputers in the next decade. The stock price is attractive right now, and the roads ahead may not be smooth, but I have no doubt AMD can reach the $100 price.
AMD recently joined the COVID-19 High-Performance Computing Consortium, made of businesses and organizations that are volunteering the use of their supercomputer systems to fight the pandemic. The project is being led by the White House Office of Science and Technology Policy, the U.S. Department of Energy and IBM. The Texas Advanced Computing Center at the University of Texas at Austin is also part of the consortium.
AMD has shown every sign of continuing its success in the PC space, on both the graphics card and processor fronts. Its EPYC processors are taking away market share from other prominent players in the data center market. Custom AMD processors are in the new Xbox Series X and PlayStation 5 game consoles, which has been on the waiting list for enthusiast gamers. In short, this year would be perfect for AMD to seize all the opportunities amidst coronavirus-crisis.
Lisa Su (AMD President and CEO), equipped with years of experience in the semiconductor research and development, is currently taking the company to a new beginning. She has held the position since 2014, and we have only seen wonders happening with the company. I do not doubt that AMD will be one of the prominent players to support the growth in the supercomputer and artificial intelligence.
I am bullish on AMD and will create a long term position to hold for at least five years. In the short run, it is hard to predict the projected bottom line profit given the uncertainty of the crisis; however, analyzing the daily trend may benefit in identifying the appropriate entry point.
Stay safe and enjoy building your portfolio.
It as hard to come by educated people about this subject. However, you sound like you know what you are talking about! Thanks.
Thank you for your kind words.
They are getting famous and glamorous now. Its a good pick. Well done!
Thank you jack! The stock is now at 68-70 range. High Five 🙂