Not much new news on our companies lately so thought I’d ask a question on reading the tea leaves on our cloud companies. AMD reported and their datacenter/cloud processors were up 40%. I’ve heard some say this is good for our companies and others more cautious. The cautious side is due to it being lower than it was expected and the bullish side is because 40% is a very healthy overall number for this kind of a segment.
I’m more of an optimist so anchor more to the side of 40% is good and a great sign for our companies. However, I’d love to hear more in-depth thoughts from opposing and supporting views on this. We’ll have more tea leaf reading in a couple weeks when the hyperscalers report!
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I, too, am a glass-half-full type of person and I take the 40% yoy growth in AMD’s DC chips segment as good news for companies that support cloud adoption.
RE: AMD specifically, we should remember that…
AMD owns a 25% marketshare in data center chips, having taken away about 16% from Intel so far this year. Their 5nm Ryzen desktop chips are launching this quarter and their next-gen Genoa EPYC server chips launch in 2023. In addition to their DC segment, the embedded chip segment is also showing strong growth. This segment relates to their recent XILINX acquisition and includes products like IOT, auto chips, industrial chips and other FPGAs.
I believe that they report earnings on Nov 1st after which their $7B buyback program will resume.
Semis are like Rodney Dangerfield - they often don’t get the respect they deserve. 
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