June 28, 2022

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Why has AMD Stock increased so much in the last five years?

2 min read
AMD Stock

AMD has come a long way in achieving this goal in the last five years. At the same time, Intel is not expected to release its first 7-nm data processing product by the first half of 2023. In the short term, Intel will increase its production of 10-nanometer chips. However, 10-nanometer production put pressure on Intel’s gross profit, which was slightly lower than management’s expectations at 55%.

The company’s revenue rose a little more than 55% year-over-year to $ 2.8 billion, while net income grew 1.5 times to $ 390 million. Increased sales of popular AMD Ryzen processors have contributed to this growth. Due to significant demand for PCs, games, and data center products, which generated record quarterly revenues, business growth accelerated in the third quarter.

AMD Ryzen processors and other positive factors for the company

Current Managing Director Lisa Su took office for six years. Many experts think Ryzen’s PC processor and server chip pushed the company into a new era in 2017. The company is ahead of Intel, producing processors on smaller nodes, offering the company’s product an advantage in terms of pace and durability. The company makes 7-nanometer chips, while Intel is working hard to make 10-nanometer chips. AMD is currently developing 5-nm chips. 

The company has also announced a potential breakthrough in the acquisition of semiconductor maker Xilinx. Moreover, the company also has announced that the merger will enlarge its produce variety into new promising areas.

Finally, investors should consider the future of Su Lishi. AMD’s prosperity is undoubtedly due to its leading position. However, after receiving her Ph.D. from the Massachusetts Institute of Technology in 1994, she changed companies regularly. Su has also worked for Texas Instruments, IBM, and Freescale Semiconductor throughout his career. If he leaves AMD suddenly, it could lead to more uncertainty or even worse.

However, as key industries such as games, virtual reality, and data centers are still evolving; AMD is expected to continue to be one of the biggest recipients. These earnings may not be in line with current growth rates of 50% or more over five years. However, these profits will continue to increase AMD’s inventories.

AMD stock competes with Intel (INTC) in the production of CPUs for any type of computer and server. The company also competes with Nvidia (NVDA) in data centers, GPUs, and game consoles.AMD’s success is due in part to its ability to compete with the gypsum giant Intel (NASDAQ: INTC). Because Intel has experienced major production delays. If you want to know more information relating to releases of AMD, you can check at https://www.webull.com/releases/nasdaq-amd.

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