AMD back in the game to lead the semicon mega cycle?
Recently Bloomberg interviewed the CEO and President of AMD, Dr. Lisa Su. She shared her views on the future of semiconductor industry and how AMD intends to navigate through the current tough times.
youtu.be/FTsFcPbU3YA
Dr. Su mentioned that semiconductor industry is undergoing a mega cycle in 2021. This has been buoyed by extremely strong demand due to surge in gaming products, PC and data centres and almost everything now has a chip component in them. She thinks that the chip shortage situation is just part of the cycle and the semiconductor industry is really good at managing the supply fluctuation over the years. AMD has chosen to invest in the more resilient industry of computing to overcome the challenges ahead.
So far, AMD has very good synergistic relationship with TSM, who's the best in the industry in manufacturing.
AMD would be facing lots of challenges ahead, such as companies like Apple and Amazon bringing chip design in-house, Intel is extending its dominance in the industry. Dr. Su shared that specialisation of chips is inevitable but AMD is prepared to focus in high performance computing sector and is in the process of acquiring Xilinx. She believed that by having good strategy, working closely with customers to resolve their problems and strong execution, AMD would continue to grow strong.
Looking ahead for the semiconductor industry, Dr. Su shared that Moore's law (doubling transistors in microchips every 2 years) is changing rapidly. Chips are unlikely to get smaller due to physical limitation. Instead, AMD is pioneering a concept of chiplets, where the chips are broken into little chips that can be packaged together or put on top of each other to bring more capability to take technology to the next level.
It is reassuring that AMD has a CEO that understands the industry, and has the experience and vision to further expand the company. Semiconductor industry is very competitive but the demand is much higher than before. Looking forward to a good run on this mega cycle.
From price movement wise, AMD has broken $80 last Friday. If uptrend continues, next target is $83, then $90. Nearest support at $73.50.
youtu.be/FTsFcPbU3YA
Dr. Su mentioned that semiconductor industry is undergoing a mega cycle in 2021. This has been buoyed by extremely strong demand due to surge in gaming products, PC and data centres and almost everything now has a chip component in them. She thinks that the chip shortage situation is just part of the cycle and the semiconductor industry is really good at managing the supply fluctuation over the years. AMD has chosen to invest in the more resilient industry of computing to overcome the challenges ahead.
So far, AMD has very good synergistic relationship with TSM, who's the best in the industry in manufacturing.
AMD would be facing lots of challenges ahead, such as companies like Apple and Amazon bringing chip design in-house, Intel is extending its dominance in the industry. Dr. Su shared that specialisation of chips is inevitable but AMD is prepared to focus in high performance computing sector and is in the process of acquiring Xilinx. She believed that by having good strategy, working closely with customers to resolve their problems and strong execution, AMD would continue to grow strong.
Looking ahead for the semiconductor industry, Dr. Su shared that Moore's law (doubling transistors in microchips every 2 years) is changing rapidly. Chips are unlikely to get smaller due to physical limitation. Instead, AMD is pioneering a concept of chiplets, where the chips are broken into little chips that can be packaged together or put on top of each other to bring more capability to take technology to the next level.
It is reassuring that AMD has a CEO that understands the industry, and has the experience and vision to further expand the company. Semiconductor industry is very competitive but the demand is much higher than before. Looking forward to a good run on this mega cycle.
From price movement wise, AMD has broken $80 last Friday. If uptrend continues, next target is $83, then $90. Nearest support at $73.50.