Today's video focuses on how Advanced Micro Devices (AMD +0.05%) will prioritize certain products during the current chip shortage to maximize returns. Online reports have stated that Devinder Kumar, AMD's CFO, discussed that its focus would be toward server products and mobile processors. Here are some highlights from the video.
- AMD reported 99% year-over-year growth during its most recent second-quarter earnings, driven by solid demand for all of its products. AMD guided for roughly 60% year-over-year growth for its full year, even with supply constraints in the semiconductor industry.
- The Enterprise, Embedded, and Semi-Custom segment, which includes server processors, was up 183% year over year. Server products include its EPYC processors, which have had five straight quarters of record server processor revenue. As cloud demand continues to accelerate, AMD needs to continue to increase its market share.
- With the start of the school year, the incoming holiday season, and hybrid working becoming a standard, the demand for laptops remains strong. Investors could see the benefits of AMD focusing on the mobile processor market.
Click the video below for my full thoughts and analysis.
*Stock prices used were the premarket prices of Sept. 16, 2021. The video was published on Sept. 17, 2021.
