Advanced Micro Devices (AMD 1.42%) has increased its total addressable market after adding numerous new solutions to its catalog, thanks to the completion of its Xilinx acquisition. Today's video focuses on the significant revenue opportunities available for AMD. Here are some highlights from the video.
- Before the acquisition, AMD was a leader in central processing units (CPUs) and graphics processing units (GPUs). After purchasing Xilinx, it has added field programmable gate arrays (FPGAs) and adaptive systems on a chip (SOCs), increasing the solutions AMD can provide to data centers.
- Management believes that the largest addressable market for AMD is the data center market, which is estimated to be $50 billion. AMD's data center processor continues to be heavily adopted by data center providers, which has opened the door for AMD to cross-sell news products added by the Xilinx acquisition.
- Xilinx management has deep relations with companies inside the 5G and communications markets. The deep ties could provide an opportunity to introduce AMD's processors into wired and wireless infrastructures.
Click the video below for my full thoughts and analysis.
*Stock prices used were the after-market prices of Feb. 17, 2022. The video was published on Feb. 21, 2022.