AMD’s success story is often discussed in tech circles. The most obvious factors that helped the chipmaker return to prominence include the appointment of Dr. Lisa Su as the CEO, the launch of the chiplet based Ryzen architecture, and the switch to a third-party foundry, TSMC. Earlier, AMD had almost run itself into the ground with the Bulldozer architecture and a series of poorly planned decisions.
Back when Dr. Lisa Su took over as the CEO in 2014, AMD’s stock price was a mere $1.61 and the market price a paltry $1.952 billion, less than 1% of Intel’s. Fast forward to present day, and we’re looking at a massive growth of 1,749% in stock value and 100x in market cap for Team Red.
AMD recently managed to capture 25% of the x86 processor market share, the highest in 14 years. Furthermore, the chipmaker’s market cap is nearly the same as Intel’s with a delta of just $10.4 billion: $190.56 billion vs $201.88 billion. Over the last several months, AMD has been consistently recording record quarterly earnings with a year-on-year growth of roughly 2x. The gross margin has also become more viable, getting to 48% in the third quarter of 2021. This is still lower than Intel and NVIDIA, but should catch up sooner or later.
NVIDIA is another chipmaker worth looking out for. Over the last few years, the company has become the most valued US-based semiconductor company with a market cap of over $800 billion. Team Green’s stock also remains one of the most valued at over $300, even after a recent stock split. The company has been consistently leading the PC GPU market, with an absolute majority (80%+) in both the desktop and notebook segments. Going by market trends, these figures won’t change much in the near future.