AMD Can’t Hide Anymore
AMD caught everyone by surprise, including Wall Street. Despite not getting any love from the Wall Street analysts, more than $20 billion has been added to AMD’s market value in 2018, the stock price is up over 200% and AMD is the best performer in the S&P 500 this year...yes, even beating out Nividia.
Although NVIDIA and AMD are fierce competitors, interestingly NVIDIA’s CEO Jen-Hsun Huang is the uncle of AMD’s CEO Lisa Su. Because women CEOs in Corporate America are an endangered species, I need to acknowledge and give props to AMD's CEO Lisa Su.
Lisa Su is a Taiwanese-American business executive and electrical engineer, and the CEO and president of Advanced Micro Devices (AMD). Early in her career, Su worked at Texas Instruments, IBM, and Freescale Semiconductor in engineering and management positions.
Su was appointed president and CEO of AMD in October 2014, after joining the company in 2012 and holding roles such as senior vice president of AMD's global business units and chief operating officer.
She was named Executive of the Year by EE Times in 2014 and one of the World's Greatest Leaders in 2017 by Fortune.
AMD shares were up over 25% the last two months alone as the company thinks it can take more market share away from Intel. In the server chip business, AMD had 1.4% market share for processors in the second quarter, according to Mercury Research. That’s up from 0.6% in the same period a year ago. The company has targeted “mid-single-digit” percentage market share by the end of the year.
AMD is also the processor supplier for both the Xbox One and PlayStation and pricing for gaming GPU should remain high due to crypto mining causing shortages. Microsoft is rumored to be prepping two Xbox consoles -- a conventional system and a cheaper one that emphasizes cloud-based gaming -- for 2020 launches.
Then there is EPYC which launched 12 months ago, that supports the CLOUD and data centers. The EPYC brings to the server market flexible configurations, an open ecosystem and lowering total cost of ownership. Prior to EPYC, if you were looking for a fully-featured, high-performance server in a single-socket configuration, there was no option. The EPYC now gives customers the ability to fully utilized servers, lower their power consumption and capital expenditure.
Since the launch of EPYC, several top cloud providers and server OEMs have qualified EPYC. It is AMD’s goal to have a mid-single digit share in a server CPU market long dominated by Intel's Xeon family in the near future.
So can AMD’s ride continue, lets go to the charts?
If I didn’t know any better, I would of thought I was looking at the a Tilray chart as it marched to $300.
But unlike Tilray, AMD’s stock price isn’t based on what could be…down the road. Price recently pulled back after hitting the monthly supply.
The chart suggests if price is able to pull back to the daily supply zone at $24.50,
price will move higher to the daily supply at $39.50.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
It has been a long journey for AMD since the last boom they experienced when computers were still being adopted broadly. It looks like the long shift in strategy has finally worked out!
Yeah, they are also getting some help from Intel and their recent woes.