AMD-Always in demand

AMD or Advanced Micro Devices is an American multinational corporation that develops computer processors and solutions.AMD was founded by Jerry Sanders, Edwin Turney, Frank Botte, Sven Simonsen, Jack Gifford, Larry Stenger, John Carey, Jim Giles in 1969 out of Santa Clara ,California. Started by a group of executives of the Fairchild Semiconductor Corporation, AMD released their first product in 1970.AMD went public in 1972 with 620,000 shares issued at 15.50$.They then moved on to supply second source chips to Intel until 1986.Following this, they released their Am386 microprocessor family which caused a long legal battle with Intel that ultimately ended in AMD’s favour in 1994.Following this, AMD acquired NexGen in 1996 and started developing their own processor which resulted to the Athlon processor and the Opteron chip.

AMD is currently trading at 117-123$ with a market cap of 195B $.They are one of the strongest players in the processor and personal computing market.They have been widely adapted in the recent times by upcoming and economic computer brands.In 2009, AMD filed complaints against their competitor Intel for violating the European Union’s antitrust laws by engaging in anti-competitive practices.Intel was later found guilty and was asked to pay 1.5B $ as compensation to AMD.They engage in consumer computing and graphics which accounts for 70% of their revenue while enterprise and semi-custom systems account for 30% of their revenue.

AMD has a median price forecast of 156$ with a high estimate of 200$ and a low estimate of 100$.The median represents a 38% increase from the last trading price.AMD is generally considered a safe investment with moderate returns.Many portfolio managers add AMD to reduce the overall risk of their portfolio.The company is usually seen to have growth and consolidation phases but the past year has been a different ball game due to the new technological advancements.

AMD is a well established player in the semi-conductor and computer chip industry.Their competitors are Intel, Qualcomm and Nvidia.All of them are well established players with specific target consumer groups.AMD despite being a competitor does supply various components and licenses technologies to Intel and Nvidia.Most personal computing brands usually use AMD processors in conjunction with other parts of their competitors.This has been an ongoing concern for AMD and they sought to resolve this by creating a more premium brand and appealing to high intensity users.They have captured a huge portion of the premium computing markets which has the highest margins and returning consumer bases.They are also trying to enter the mass markets by creating mobile processors but have not had the best results.Mining of cryptocurrency is another industry that has seen massive growth in the recent times where AMD has almost 40% of the GPU market.This revenue stream is consistently expanding as the world moves towards cryptocurrencies.Having a head start in this space will allow future growth as the world moves towards meta verse as well.The exponential increase in investments in the meta verse is another positive sign for AMD as demand for their offerings increases.The gaming industry also heavily relies on AMD for their components but the supply chain issues persisting during the pandemic have created a massive pressure on AMD.All seems well for AMD as the world seems to be accepting of the Ryzen processors.With the advancements in technology, the need for processors and chips is raised and making AMD a highly profitable business.