So the fool author says AMD is in a funk but I wonder what he is talking about. Less than a month ago AMD was bouncing around the high 70 to 80 dollar range and right now its $96 having already been as high as $98. This is a pitiful article…doc
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Talking heads get paid to fill their space. But that does not guarantee they are well informed.
Caveat emptor!!
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Thank you for the link, doc.
The author does seem to have recentcy bias. If you started looking at AMD in 2021, then yes, there are doldrums. One cogent sentence: the two companies have similar margins. But if you expand your view to five, ten, twenty years, AMD has never matched Intel’s margins. That’s not doldrums; that’s continuation of a long stretch of improvement starting about five years ago.
With these two, it’s products that matter. AMD’s margins have risen (and Intel’s fallen) because of AMD’s gains in the data center. If DC demand falls, only the superior products will draw interest, and that will hurt Intel far worse as it has been for a few years. If they stabilize at some form of equality, then as AMD makes more chiplets, they’ll use them in workstations, laptops, graphics, and desktops. AMD cannot make enough product to compete everywhere, so they’ll focus on the highest margin niches.
I do see the end of the tunnel for Intel. It seems that 2024-25 will be when Intel gets its act back together. But with a company that has missed so many projections the past five years, can they be believed? If it takes longer, I won’t be surprised, and if AMD has been avoiding Osborning themselves by holding back on newer products until necessary, I also won’t be surprised.
I did make a recent $10,000 profit in a short term Intel investment. I sold all my Intel. I sold none of my AMD. I’m not sure either is a buy at these levels, but if I can make that level of profit once a quarter, it, well, it won’t do anything for my life except more money I’ll leave to my wife and daughter. But it never feels bad to make money.
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Thanks, all that I am reading says the same thing about Intel - sometime in 2024 or 2025 they will get back on equal footing with AMD if they are able to execute. But I think that things won’t be the same as they used to be. It seems to me that by partnering with mobo, memory and other OEM builders that AMD has built a good team structure with other companies vs competing with them. AMD seems to have a solid base to compete in the future. Knowing you for years here on the fool, we shall follow these two into the future…doc
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AMD hit $101 yesterday while it is in this funk.
Roleplayer, do you think AMD will be able to catch up to NVDA regarding AI? I know NVDA is the dominant player in AI, but was wondering if AMD can get competitive in this new arena…doc
Not a clue. I have a friend I can ask next Monday at game night.
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