Advanced Micro Devices, Inc. (NASDAQ-AMD) will unveil its new products at CES 2019, which begins on January 8, 2019. The company’s Chairman and CEO, Dr. Lisa Su, will speak about the near future next week. Advanced Micro Devices, Inc. plans to focus this year on solving a variety of computational problems in the near future in computer gaming and virtual reality, which will be more advanced than ever before. The company is also talking through public media about revolutionizing the gaming industry, but also virtual entertainment. These facts have attracted private investors and multinational investment corporations to buy shares of Advanced Micro Devices, Inc. (NASDAQ-AMD), which rose 2.00% to $18.83 per share in trading on January 2, 2019.
Advanced Micro Devices (abbreviated as AMD) is an American hardware company founded on May 1, 1969 in Sunnyvale, California with operations in the global market. The company is engaged in the development and sale of processors, APUs, GPUs and chipsets. The company also owns an 8.6% stake in Spansion, a flash memory manufacturer. The products are manufactured by external suppliers: GPUs are manufactured by TSMC, CPUs are manufactured by GlobalFoundries together with TSMC, and chipsets are manufactured by GlobalFoundries. Graphics cards are produced by each company on its own. AMD’s biggest competitors are Intel, which mainly produces CPUs and chipsets, and nVidia, which mainly produces GPUs. In 2011, AMD is the 2nd largest company developing processors (mainly x86 compatible, but also ARM processors), graphics chips and chipsets.
Earlier in the press conference, Dr. Lisa Su, Chairman and CEO of Advanced Micro Devices, Inc. (NASDAQ-AMD), announced that in 2019, AMD will showcase a new generation of gaming and visual technology featuring high-performance 7nm processors and GPUs that will provide the performance needed to take computing to the next level, which will be seen in the most demanding games, as well as entertainment and virtual reality with a new dimension of definition in modern life. With 7nm technology, the company will once again manage to leapfrog Intel, which is still struggling with 10nm manufacturing. Since the birth of the first ZEN processors, Advanced Micro Devices, Inc. (NASDAQ-AMD) has been planning to improve performance by 40% over time. However, the reality ended up being with a 52% performance increase. The current size of ZEN+ chips is 12nm, so it is very likely that with the new ZEN2 processors, which have chips at just 7nm the company can significantly increase the performance of the processor. These facts have attracted the attention of private investors and multinational investment corporations to buy shares of Advanced Micro Devices, Inc. (NASDAQ-AMD) specifically, which generated total sales of $5.33 billion for fiscal year 2017 with an operating profit of $204 million. After deducting all expenses, the company generated a net profit of $43 million. The company has total assets of $3.54 billion with equity of $611 million and employs 8,900 tribal employees.
Shares of Advanced Micro Devices, Inc. (NASDAQ-AMD) have currently become very attractive for private investors and multinational investment corporations to buy shares, mainly due to the long-awaited unveiling of the new ZEN2 processor line at CES 2019, but also due to the recently released 3Q 2018 financial results, in which the company increased net income by 67.2% to USD 102 million, and the launch of the Radeon Pro V340 graphics card, which can provide the most demanding visualization requirements from data centers. According to analysts at brokerage firms and financial strategists at investment banks, the share price can be expected to increase in the short to medium term investment horizon, where the average target price has been set at $23.95 per share.
