Advanced Micro Devices (AMD 0.09%) continues to grow in the data center market and has recently increased its data center solution after acquiring Xilinx. Unity Software (U -0.38%) continues to benefit in gaming and non-gaming markets. Today's video focuses on bullish points for both of these companies and why long-term investors should keep an eye on them. Here are some highlights from the video.
- Both AMD and Unity reported fourth-quarter results in early February and reported strong double-digit growth. Both companies are also guiding for a strong 2022. AMD's fourth-quarter revenue grew 49% year over year (YoY) and it expects 2022 full-year revenue to increase by 31%. Unity grew its revenue by 44% YoY and estimates 35% growth for 2022.
- In the past few weeks, numerous cloud providers have increased the adoption of AMD's processors. During the earnings call, AMD CEO Lisa Su stated that the company's data center revenue doubled this most recent quarter and is now roughly 20% of total revenue.
- Mordor Intelligence shows that the gaming market is expected to grow at a compound annual rate of 9.64% from 2022 to 2027. Unity, which provides solutions in the creation phase and post-game creation, can benefit from this growing market.
Click the video below for my full thoughts and analysis.
*Stock prices used were the market prices of Feb. 24, 2022. The video was published on Feb. 24, 2022.