AMD Unveils New Product Portfolio to Accelerate Growth

Advanced Micro Devices AMD recently unveiled a plethora of new products as the company outlined its strategy to expand its product portfolio to address new markets, accelerate data center growth, and enter the AI and AR space.

On its Financial Analyst Day, AMD CEO Dr. Lisa Su had laid out the company’s strategy to capture a significant share of the $300 billion market of high-performance and adaptive products. This strategy will help the company drive revenue growth and enhance shareholders return.

AMD is expanding its multi-generational CPU core, graphics, and adaptive computing architecture roadmaps with new product launches. Some of the notable product launches include the Zen 4 CPU, the Zen 5 CPU and the AMD RDNA 3 gaming architecture.

On the Data Center front, AMD’s acquisition of Pensando Systems is expanding AMD’s data center product portfolio. AMD’s Pensando DPUs are on track to become the world’s most intelligent and performant DPUs with its zero-trust security solutions and advanced packet processor.

AMD’s acquisition of Xilinx is accelerating its growth in the AI and AR space. The company is integrating Xilinx’s AI engine with AMD Ryzen and AMD EPYC for small and midsize AI models that will help it expand into the uncharted AR space.

Advanced Micro Devices, Inc. Price and Consensus

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AMD Diverse Product Portfolio is Driving Top Line

AMD is leading its peers in high-performance computing (HPC) as the company is enabling customers across various fields like manufacturing, life sciences, financial services, climate research, and more to utilize supercomputers for research purposes.

It is worth mentioning that AMD powers five of the top ten most powerful and eight of the top ten most energy-efficient supercomputers globally.

Recently, AMD partnered with Hewlett Packard HPE and the U.S. Department of Energy’s Oak Ridge National Laboratory to build the world’s fastest and most energy-efficient supercomputer — Frontier.

AMD has ventured into the AR space with its recent collaboration with Meta Platforms META.

AMD’s collaboration with Meta will aid the company in transitioning out of the slowing pc market and concentrate on the semi-custom chip business, which will help to expand in high-growth markets like the Metaverse, which is anticipated to reach a market value of $426.9 billion by 2027 according to Bloomberg.

Although AMD is venturing into new markets, the company has been facing stiff competition across all of its business segments. Specifically, AMD has been facing significant competition from NVIDIA NVDA as it forays into the HPC market.

NVIDIA’s superchips have been benefiting from the rapid proliferation of AI. By applying its CPUs and superchips in AI models, the company is expanding its base in untapped markets like climate science, energy research, space exploration and digital biology.

Further, global supply chain challenges in the semiconductor industry and intense competition have impacted the stock price negatively.

Shares of AMD, which currently carries a Zacks Rank #3 (Hold), have fallen 31.3% compared with the Zacks Electronics - Semiconductors  industry’s and the Zacks Computer and Technology sector’s decline of 18.8% and 24.2%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMD has been gaining from strong demand for its Ryzen and EPYC server processors, courtesy of the increasing proliferation of AI and Machine Learning (ML) in industries like cloud, gaming and data center. This, in turn, impacted the first-quarter 2022 revenues positively.

In the last reported quarter, AMD generated revenues of $5.89 billion, surpassed the Zacks Consensus Estimate by 17.73% and surged 71% year over year. The company anticipates AMD revenues to improve as it forays into the HPC market. This, in turn, will impact shareholders' wealth positively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.