AMD Investors Should Take This Into Consideration
In this video, I will be covering AMD (NASDAQ: AMD) stock. The rise of the company since 2015 has been nothing but remarkable, mostly thanks to its CEO Lisa Su. AMD has seen its market value surge to more than $90 billion from about $2 billion since she took over, and recently it announced a $4 billion stock repurchase plan. But can things be too good to be true? Can AMD continue to grow?
Intel's (NASDAQ: INTC) struggle is one factor behind AMD's success. Intel is still struggling with manufacturing after years of delays for its 10-nanometer chips. AMD uses TSMC (NYSE: TSM) to build its latest Ryzen and EPYC chips, giving it access to cutting-edge manufacturing processes. AMD provides chips for the latest PlayStation and Xbox game consoles as well as Tesla's (NASDAQ: TSLA) in-car gaming rig. Strong demand for those consoles has boosted AMD's results. AMD's revenue soared 93% in the first quarter, and net income more than tripled.
Back in 2006, AMD reached 20% market share and that's as high as it got for the company. Back then it was Intel who was the one stealing AMD's lunch.
Source Fool.com
