Looking at all the stories we publish about the tech giant, one might think it's a good option in which to invest. Whether being a small saver with money that we can afford to invest or being part of an investment firm, AMD is postulated as an option in which to invest.
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The security offered by AMD
First of all, it must be made clear that it is not a totally safe bet. It must be understood that any investment in a company carries certain risks. This does not mean that there is strong prospecting for the future due to its strong investment in R&D, which ensures that they will have products of all ranges and thus remain in all possible markets to avoid losing a lot if one of them does not give the expected results.
All this is important to understand the evolution of the amd stock price in the future.
The semiconductor crisis will eventually end and there will be high demand
Today what is most hindering the technological adoption of new processors and new graphics cards from AMD is semiconductor shortage that prevents a greater stock of graphics cards and high-end CPUs from coming out. This means that they cannot meet the demand and therefore there are not yet a large number of home users who want a powerful graphics card to play high-quality video games and run graphic programs, and professionals who need a high-end graphics card.
As soon as the component stock problem is solved, an increase in graphics sales can be expected, which are products with a high profit margin. The same with the higher end CPUs that will include 3D cache, which promises to be a great evolution in CPU technology.
Return to the low-end CPU market
Not only from the consumer range and from the high range can one maintain. The low range made up of user computers in emerging countries and office automation computers that only need a restrained processor to be able to carry out their work simply and simply; It is a very demanding sector in which being the most competent option at a low price can generate high profits.
It is a market that AMD has not taken into account for years, but it is possible that AMD will return with new CPUs from the Athlon range, its range of low-end processors. They do not have multiple threads or 3D Cache, and the advances are the minimum to guarantee low power consumption. But there are hundreds of millions of users who simply want an efficient laptop for remote work, or manufacturers who want a cheap CPU for the home theater device that is increasingly distilled with streaming services.
If AMD gets the new Athlon to have more attractive prices than the new Intel Pentium and Intel Celeron, they could get deals with dozens of manufacturers of office PCs and mini-PCs; and many small business PC builders will turn to AMD over Intel to optimize budgets.
Zen 4 is coming
The answer to AMD's Intel Acore Alder Lake will be Zen 4 architecture at 5nm and 6nm. It is promised that these CPUs will be a new technological ceiling for the manufacturer already known for bringing out the best high-end CPUs. It is to be expected that these CPUs will be postulated as the most powerful on the market, and as such, they will be the most demanded by enthusiasts.
A Refresh of the RX 6900
Needless to say, this is a rumor, but it is backed up by leakers who have regularly proven it to be true. A new version of the RX 6900 XT is postulated as a possible new high-end graphics card that would compete against the NVIDIA RTX 3090 Ti. For unknown reasons, the reissue of the top-of-the-range graphics card has not presented any news, making it the ideal time for AMD to take out its competitor.
Given that the top-of-the-range graphics market is very small, the option that is available is the one that ends up winning in the face of the scarcity of options. If AMD is the only option, it can get that market willing to pay a lot of money for a graphics card and take it away from NVIDIA. It is not a market with a high turnover of users nor are they repeat offenders, but being one of the technological products with the highest profit margins, if they achieve them they will have sales that they would have lost if they had not released said reissue.
