However, if AMD can sufficiently ramp up production to meet this excess demand, there’s an argument that can be made for some market share capture.įinally, the recent news coming from Dell Technologies (NYSE: DELL) that the company will be using AMD Epyc chips in five of its 17 server models being released in 2021 is a big deal. Indeed, many believe these shortages will last until mid-2021.ĪMD’s product line has become much more competitive with Nvidia’s, though AMD is lagging in terms of market share here. Driven by extremely high demand from growth in computing power needs (think cryptocurrency mining), stocking issues have plagued the sector. Indeed, the company’s Ryzen mobile and desktop processors are branded by the company as “the world’s best laptop processors” and “the world’s fastest gaming processors.” That’s not bad, even if AMD does say so itself.Īdditionally, the company’s GPU segment (where it’s really struggled) is looking positive. Product superiority is the key factor I think most AMD investors focus on. Product Superiority a Key Competitive Advantage Indeed, I think these central tenets of AMD’s strategic outlook can really be split into two buckets: product superiority and predictable growth. I think that just about sums up AMD stock. Disruptive solutions combining CPUs and GPUs.According to AMD’s investor presentation, the four pillars AMD’s management team would like investors to focus on are: However, the company believes it is on the cusp of continuing to nab market share from its competitors at a relatively rapid pace. These companies also own a significant market share today that AMD is yearning to capture. Its rivals Intel Corporation (NASDAQ: INTC) and Nvidia Corporation (NASDAQ: NVDA) have market capitalizations roughly three-times that of AMD. Don’t Be Fooled by AMD’s SizeĪMD is the smallest of the “big 3” in the U.S. Specifically, I’m going to focus on the market share capture potential of what is still a “small” player in the semiconductor space. In this article, I’m going to discuss why I’m very bullish on AMD stock right now. However, whether or not this growth story can continue is another question. How consistent? Investors who bought AMD stock five years ago have booked returns of more than 2,200% over this time frame.

Advanced micro devices stock split