Advanced Micro Devices ( AMD ) stock jumped to an all-time high after the chipmaker reported second-quarter results.But with a pullback in shares, some investors may be wondering: Is AMD stock a buy right now?
X AMD has staged an amazing turnaround over the past six years, fueled by new products and improved profitability.And AMD stock has climbed as a result.
AMD competes with Intel ( INTC ) in making central processing units, or CPUs, for personal computers and servers.It also rivals Nvidia ( NVDA ) in the market for graphics processing units, or GPUs, for PCs, gaming consoles and data centers.
Founded in May 1969, AMD went public in September 1972.AMD shifted to a fabless semiconductor business in March 2009 by spinning off its factories into a joint venture called GlobalFoundries.
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x Thank You! You will now receive IBD Newsletters ALL DONE! Something Went Wrong! Please contact customer service CLOSE Chief Executive Lisa Su Making A Difference Current Chief Executive Lisa Su took the reins in October 2014.
She shepherded the Santa Clara, Calif.-based company into a new era with its Ryzen PC processors and Epyc server chips in 2017.
Under her supervision, AMD jumped ahead of Intel in making CPUs at smaller node sizes, giving its products an edge in speed and performance.AMD is making chips at 7-nanometer scale, while Intel has struggled to make chips at 10-nanometer scale.AMD is now developing chips at 5-nanometer scale.Circuit widths on chips are measured in nanometers, which are one-billionth of a meter.
In July 2020, Intel announced a six-month delay in production of its already behind-schedule 7-nanometer processors.
Intel now expects to ship its first 7-nanometer processors in late 2022 or early 2023.By that time, AMD could be making 3-nanometer processors, analysts said.
Also, in June 2021, Intel revealed a delay in production of its next-generation Xeon data center processors by about one quarter to the first quarter of 2022.
The situation has helped AMD take market share from Intel in PCs and servers.
Those gains have buoyed AMD stock.
Chip foundry Taiwan Semiconductor Manufacturing ( TSM ) produces AMD’s chips.
Su also is overseeing a potentially transformative acquisition.In October 2020, AMD announced an all-stock deal worth $35 billion to buy Xilinx ( XLNX ) to expand its growing data-center business.
However, AMD stock fell on the Xilinx acquisition news .Critics said the acquisition complicates AMD’s “clean” investor story around market share gains in processors.
Intel Losing Market Share To AMD In the second quarter, AMD continued to take market share from Intel in CPUs for notebook PCs and servers, according to Mercury Research.But it lost ground in desktop PC processors as it prioritized higher-margin products.
AMD’s unit share of desktop PC processor sales was 17.1% in the June quarter, down from 19.2% in the year-earlier period.
AMD’s unit share of notebook PC processor sales was 20% in the second quarter, up from 19.9% in the same quarter last year.
Advanced Micro Devices made the biggest gains in the more lucrative server CPU business.Its server CPU market share was 9.5% in the period, up from 5.8% in the June quarter last year.
AMD made its gains despite supply constraints with its contract manufacturer in the period.
Advanced Micro Devices News: New PC, Server Chips In October 2020, AMD introduced its current-generation Ryzen processors for desktop computers.
It described its Ryzen 5000 series central processing units as the “fastest gaming CPUs in the world.” The Ryzen 5000 series products are aimed at PC gamers and content creators.
On Jan.12, during a keynote speech at the virtual CES 2021 tech conference, Chief Executive Su introduced the company’s new Ryzen 5000 Series mobile processors .She called the chips “the most powerful PC processors ever built for ultrathin and gaming notebooks.” However, AMD stock fell 2% that day.
On March 15, AMD introduced its third-generation Epyc processors .The chips are designed for high-performance computing, cloud data center and enterprise server applications.
AMD stock rose 1.8% on the news.
On May 19, .