AMD’s Third Quarter Earnings Report Put Intel in the Dust, Why the Stock Price Dipped | TechNews

AMD announced that its revenue in the third quarter of 2020 reached a new record of $ 2.8 billion, and its net profit reached $ 390 million, an increase of 225%. Adjusted earnings per share were 41 cents, up from 18 cents in the same period last year.

AMD not only released a better-than-expected third-quarter financial report, but also revised the revenue forecast for the current quarter. Even Bloomberg is of the opinion that AMD has rejected Intel and the share price easily outpaced it in the past two years. While Intel attributed poor data center and server sales to the weak economy, AMD claimed that its data center business was strong and that server chip sales more than doubled compared to the same period.

AMD is clearly eroding Intel’s market share and this trend will not change anytime soon. Due to the unsatisfactory 7nm process, it may take some time for Intel to recover. However, for such a good situation, the market seems not to pay much and the share price has dropped. The main reason may be that AMD will acquire Xilinx. Although it is expected to further strengthen AMD’s competitiveness in the data center market, there are still many opinions that this is too risky.

Some analysts still maintain a wait-and-see attitude. While they agree that this merger will help AMD stabilize the data center market, the benefits may not be as high. As the economy continues to weaken, how to maintain Xilinx’s revenue growth going forward will be a challenge. Small challenges, AMD’s move can be described as too opportunistic and may even distract Su Zifeng’s energy. AMD said that after the acquisition of Xilinx, Su Zifeng will remain the CEO of the new company.

However, Su Zifeng said on the conference call that he is still quite optimistic about the development of cloud services in the future. In edge computing, you see continued growth in demand for HPC, and Xilinx, as the market leader in FPGA, is All of the above has considerable technical advantages, and is common and complementary to AMD technology development methods. Combination of the two parts will provide a first-class product portfolio on the market.

It is worth noting that although analysts basically agree that the combination of the two is good, AMD will add FPGA technology to its small-chip architecture, which can effectively achieve differentiation, but they believe that the real need to buy Xilinx it is actually Nvidia. In any case, Wall Street also agrees that Intel is now in a precarious situation and lacks the leadership skills that Su Zifeng and Huang Renxun have.

(Source of first image: AMD)

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