Company Profile: AMD / Advanced Micro Devices

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A Semiconductor Company Based in Santa Clara, California, USA

High Altitude Reconnaissance
Stock ticker: AMD
Stock price: $82.76
Market Cap: $100.5 billion
Enterprise Value: $98.8 billion
Growth Rate last 12 months (TTM CAGR): 45.05%
Sector: Technology
Industry: Semiconductors
Full Time Employees: 12,600
CEO: Lisa Su since 2014
(also: Texas Instruments, IBM, and Freescale Semiconductors)
Year Founded: 1969

Company Filings & Investor Relations
2020 Annual Report: click here
Investor relations: click here

Revenues
2018: $6.1 billion
2019: $7.25 billion
2020: $9.76 billion
2021: $13.37 (estimate)

Coming In Hot!
It’s not every day that you come across a Tech company from 1969 that has a 45%+ growth rate and shows no signs of slowing down! In fact, AMD’s Lisa Su and fellow co-workers are accelerating. The future of semiconductors is extremely bright with the current state of PCs, tablets, gaming, and upcoming technologies such as augmented reality (AR), virtual reality (VR), autonomous vehicles, internet distribution around the planet (3 billion still to come online), and countless other smart products under development – plus the overall digitization of historically industrial capabilities such as packaging technology. An estimated $91 billion in semiconductor growth is expected before 2025, and AMD has positioned itself as a global leader able to meet demand and rake in outsized amounts of that growth.

AMD’s Best
AMD’s highest profile offerings right now include Ryzen and Radeon. Ryzen is their processor and it is beloved with gamers and content creators alike. Here’s what AMD has to say about their Ryzen processor and their Radeon graphics card for gamers, respectively:

“When you have the world’s most advanced processor architecture for gamers and content creators, the possibilities are endless. Whether you are playing the latest games, designing the next skyscraper, or crunching data, you need a powerful processor that can handle it all—and more. Hands down, the AMD Ryzen™ 5000 Series desktop processors set the bar for gamers and artists alike.”
“Powerhouse Performance
The AMD Radeon RX 6000 Series graphics cards represent the forefront of extreme engineering and design to deliver ultra-high frame rates. Powerful new compute units, the all-new AMD Infinity Cache, and large amounts of GDDR6 memory enable the ultimate gaming experience.”

and…

Get More Graphics Memory with Radeon
PC Gaming continues to push the limitations of hardware in the quest for improved visuals and framerates. The Radeon RX 6800, 6800 XT, and 6900 XT graphics cards features 16GB of VRAM to take on any of your games at 4K Max settings.

Competition
AMD is not alone in this space, but they are indeed an industry leader. The competition within the semiconductor industry is healthy and drives better and better products. I personally really like the high competition level in this space, frankly. Competition includes, but is not limited to:


NVDA / Nvidia Corp
INTC / Intel Corp
MRVL / Marvell Tech
QCOM / Qualcomm Inc
IBM / International Business Machines Corp
ADI / Analog Devices Inc
TSM / Taiwan Semiconductor Mfg
and many more.

OB’s Closing Remarks
So where is AMD’s acceleration and momentum coming from? In short, the company has been solid for years and years and years. And there is no doubt that semiconductors have had a great handful of decades! But now, amazingly, it goes to the next level. We are leaving the tip of the iceberg that is the Tech/Info Revolution and building the real mass. How so? Everyone on Earth is attached or becoming attached to the digitization process directly now (or in the next 5-10 years as connectivity grows to include another 3 billion people). The combination of processing power + personal devices + connectivity and networks cannot be overstated. Artificial Intelligence and Machine Learning are well underway, Artificial Reality and Virtual Reality are well underway, cloud and cloud gaming are well underway, Big Data is well under way… and so on. These are massive, massive areas of growth, ingenuity, and opportunity that are already bone fide. All of these areas will sweep across every sector of the market/life, whether consumer discretionary, consumer staples, health care, finance, real estate, industry, et cetera. If you want to be long on all of the upcoming growth then a premier semiconductor company such as AMD is a must!

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As always, I actively move stocks in and out of The OIC Folio, so AMD may be in now but out later. I design and manage the folio daily, and if it needs a change I make the change. Furthermore, if I do not make a change mid-quarter, I will certainly make adjustments during each of my quarterly reviews – it is highly unlikely I do not make at least one change. At the end of the day The OIC Folio’s goal is to maximize returns through medium-risk, high-growth public companies.

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