Advanced Micro Devices (AMD) has been making waves with its market performance. The chip maker is currently trading around the $100 mark which is nearly 30% below its peak at $161 in November 2021. AMD has proven to be a survivor, even with the market becoming more hostile due to rising interest rates and inflation. This can probably be attributed to the chip giant being able to keep up with the ever-changing technological landscape, with the launch of a new line of EPYC server chips.
Counterpoint Research states that AMD’s market share increased from nearly 12% to 20% in 2022. This still leaves Intel with a commanding lead in the data center CPU market, with a market share of 70%. Despite the market’s optimism for the opportunity the data center server sector holds, AMD was still able to generate $5.75 billion in 2022 revenues. If AMD were to just double their market share to 40%, their revenues would jump to $11.5 billion, but Intel would still have a larger market share of 50%.
This was also backed up by the launch of their Sapphire Rapids CPUs in 2022, and AMD’s Genoa Server Chip update which was released to the EPYC line at the end of the same year. This shows that AMD is committed to increasing their competitiveness in the server market and looking to capture more market share, which will likely lead to higher revenues in the future.
The person mentioned in this article is Dr. Lisa Su, Chief Executive Officer of Advanced Micro Devices (AMD). Dr. Su has held this role since 2014 and is responsible for strategy and development of the company. She has worked at AMD since 2012 and has a background in teaching, research, and consulting. As the president and CEO of AMD, she is known for her commitment to customer focus and innovation.
In conclusion, AMD is positioned for massive growth by taking advantage of the surging generative AI demand that has pushed the TAM for AMD from $79 billion to $300 billion by 2027. Investors should focus on the bigger picture and consider AMD’s potential to reach new all-time highs with the opportunities that await. AMD could easily double from its current price of $100 and with Intel’s market lead, AMD could exceed analyst targets set for 2024 and 2025 of $4-$5 EPS and grow revenues from taking market share from Intel in the server sector. With all this in mind, the future looks bright for AMD.
