AMD reported earnings during this week and convinced Wall Street with some good numbers. Let’s look at the chart of the last 15 years, which shows a new long-term high.
Important here are not the numbers themselves. They are not that impressive. AMD managed to earn $116 M and to grow revenues 53% year over year.
It is something that may materialize in the future and which is suggested by the astonishing fact that AMD is able to compete again with Intel’s processors after years of failure.
Intel owns its factories and has multiple of them, which enables them to smooth out delays and hiccups at single ones. It has also much bigger revenues and earnings, giving them the chance to invest more into the development of future products and processes. Over time that gives the number one in the digital world the opportunity to dwarf all competitors. See Microsoft.
Once you are dead in this business, you are dead forever. Intel had something close to a monopoly after beating AMD out of the game. That’s what everyone thought.
But AMD came back on both dimensions of the processor war, the production process and the logical chip design.
Back to the long-term chart. It shows a stock that never took off. Maybe that is going to change in the coming years as AMD tries hard to win the processing power game and seems to have some secret sauce here.
Did Intel do something wrong and AMD knew it better and has positioned itself better against almighty Intel? I leave this question open for now, but the fact that AMD is once again a problem for Intel in the processor race is simply amazing.
That could mean more…