AMD (Advanced Micro Device) was founded on May 1, 1969 by Jerry Sanders and his 8 friends. The initial capital was $ 100,000. The company launched itself as a manufacturer of logic integrated circuits, this being the initial field of activity of the company. The first microprocessor launched by AMD was the Am9080, a clone of the 8080 model, released under license from Intel. In 1975, AMD released the first RAM chip, the AM1902.
AMD’s history is full of ups and downs. However, the organization’s management always promoted the path initially chosen, which ultimately allowed the goals to be achieved. AMD began by producing semiconductors under Intel patents, but later received the capital needed to create its own developments and conduct large-scale research, a mission that the company has successfully accomplished to date.
Why is investing in AMD shares a good option?
Based on the latest statistics, Intel (AMD’s direct competitor) continues to face significant problems with 10 nm processors. This creates competitive advantages for AMD, thus giving investors a timely opportunity to invest in AMD shares.
At the same time, despite the fact that AMD securities have recently fallen in price, due to new products, their growth potential is quite high. Thus, in the current circumstances, a favorable situation is forming to invest in the shares of this company, plus that, and the share price of AMD listed on the stock exchange right now is quite convenient ($ 79.27 on April 21, 2021).
The most popular AMD products
Ryzen’s third-generation processors and the much newer AMD Ryzen 5000 series are more than capable of delivering high performance, creating key competitive advantages for the manufacturer. These are usually more affordable than those offered by competitors in the market, while providing impressive performance. Here are the most popular AMD products:
- AMD Ryzen 9 5900X
- AMD Ryzen 5 3600X
- AMD Ryzen 7 5800X
- AMD Ryzen 9 3950X
- AMD Ryzen Threadripper 3960X.
What is AMD’s market share?
According to data presented by Mercury Research, for the last quarter of 2020 the market share of AMD products was 22.4%, which is an increase of 6.3% compared to the same period last year. The market share of desktop processors reached 20.1%, which is 2.1% more than in 2019.
The market share of AMD products continues to grow for the 12th consecutive quarter. Among mobile processors, the situation is even better: a market share of 20.4%, which is 5.5% more than last year. However, AMD’s server market is not doing so well: its share today is 6.6%, which is only 2.3% more than the previous year. At the same time, a decisive factor could be the AMD server processor (below you will find the description of this product and how it influences the price and success of AMD).
The Milan server and how it affects the price of AMD
Another important aspect that could lead to even greater success for AMD is the implementation of the AMD Milano server processor. This processor can provide a significant increase in performance only due to changes in design.
Experts predict that AMD Milano will offer the manufacturer a revenue increase of over 40% in 2021. At the same time, through this product, the company anticipates an increase in the market share of servers by 1-2% annually. These events could, in fact, lead to an increase in AMD’s long-term shares. In addition, such an increase would be natural as it would be based on relevant premises.
Although there is a historical rivalry between AMD and Intel, recent events show AMD’s ability to cope with this competition. The company is constantly improving its product range, offering various solutions with excellent features in terms of performance. At the same time, there is now a decrease in the price of AMD shares, which creates relevant circumstances for investing in the company’s shares right now.