Advanced micro devices (Nasdaq: AMD) And Apple (Nasdaq: AAPL) Market-beating benefits for investors, but these top tech stocks are poised for further gains in 2021. AMD and Apple are pushing some of the more demanding consumer products this season. This is just the beginning of why buying stocks is so exciting.
AMD is on fire
AMD is in a leadership role led by CEO Lisa Suna, who took office in 2014. Over the past few years, it has delivered competitive chip products for PC gaming and data centers. Moreover, AMD has a pipeline of products. In particular, its Zen-based 7-nanometer (nm) processors could take more market share remotely IntelIs, which has suffered a delay in releasing its 7nm chips.
AMD’s Radeon RX6000 series GPU Image Source: Advanced Micro Devices.
Thanks to the strong demand from customers and server processors who buy AMD-powered laptops to work from home, revenue has increased this year. Based on current management guidance, revenue is projected to grow 41% in 2020, driven by the ramps of new Rayson, EPYC and semi-custom chips.
In the short term, strong sales of AMD could benefit SonyPlayStation 5 and Micro .ftNo Xbox Series X and Xbox Series S, all powered by Custom Ryson Zen2 Central Processing Units (CPU) and AMD Raden RDNA 2 Graphics Processing Units (GPU).
The ramp of these console chips in the last quarter has led to strong growth in the semi-custom segment. Management expects revenue to grow steadily in the fourth quarter on the back of high demand for new consoles, which are selling as fast as Sony and Microsoft can make.
October In October, AMDA announced that it would acquire Zilinks billion in all-stock transactions worth 35 35 billion. The deal represents another catalyst for future growth. Xilinks is a leader in high-performance computing (HPC) products for cloud, edge and end devices. The addition of Zeilinks will expand AMD’s reach in a growing market for field-programmable gate arrays (FPGAs). It will also open up new markets such as communications and aerospace. AMD says the deal will be immediately profitable.
AMD runs a clear production routemake. Its next pay generation Milan Zen3 server processor is on track to start shipping to cloud and HPC customers in the fourth quarter. The company just acquired a double-digit share of the server market in the second quarter. Meanwhile, its RDNA 2 gaming GPU may recover some of the shares NVIDIAAMD’s gaming chips deliver comparable performance at a slightly lower price, since the RTX has 30 series. AMD’s share of these markets is expected to grow by 2021, which could send the stock higher.
Apple is currently producing gorgeous products and big profits
Apple Tech is as safe as it gets in stocks. Its brand power is unmatched, and its growing installed base of 1.5 billion active devices offers many levers to drive growth through product upgrades, app sales and other services.
Apple Paul’s business strategy is as beautiful as its products. It has long used the ease of playing well on iCloud with its Mac, iPhones and iPads. The iPhone is the cash cow, accounting for half of FL’s આવક 44.4 billion revenue in FY2050. .
The release of each new product is a layout sale, given that the customer satisfaction rate among iPhone users is very high, which can lead to additional product purchases. For example, Apple Play has just launched the new AirPods Max headphones, which are retail at $ 549 and already have a three-month wait for delivery.
Apple’s new AirPods Max. Image source: Apple.
Demand for the iPhone 12 is also on the rise. The new iPhones offer 5G connection speeds, which can stimulate a healthy upgrade cycle, although 5G coverage remains spot on for now.
Apple Pal is also expanding its lucrative services business. It continues to invest in streaming with Apple Pal TV + and will launch Apple Pal Fitness + on December 14th. Services – Revenue from services including Pull Music, Apple Pull Card, Apple Pull Pay, News +, Arcade, iCloud, the P Store, Apple Pull TV + and Apple Pullcare – accounted for 22% of the business in the most recent quarter and is Apple’s fastest growing revenue stream.
All these products and services lead to billions in cash flow. It allows Apple to invest in the future while also returning cash to shareholders through dividends and buybacks. Apple Play generated 73 73 billion in free cash flow in fiscal year 2020, which currently funds a quarterly dividend payment of 20 20,205 per share. At the time of writing, the dividend yield is not just 0.67%, but with so much free cash flow each year, the dividend will continue to grow over time. Apple Pal stock looks like a gift that will keep giving.
