Advanced Micro Devices (NASDAQ:AMD) gets more attention than its competitors on the stock market. While Intel (NASDAQ:INTC) is trading back to within the $50 range, Nvidia (NASDAQ:NVDA) has more ground to cover. The GPU competitor to AMD is still trading around half its yearly high because the markets are unsure if Nvidia will enjoy past growth rates post-crypto bubble.
AMD also enjoyed strong GPU sales during the crypto euphoria, but that was in 2018. It is looking ahead with Radeon 7, whose release in Feb. will not add to the upcoming earnings report.
AMD may very likely report GPU sales worse than thought. Aggressive discounts from Nvidia for its previous generation GPU, to make way for the RTX 2080 series and the high-end GTX 1080 might weaken AMD’s Polaris card sales.
The opposite is true for the Ryzen CPU. Holiday promotions from its OEM partners may drive desktop and mobile Ryzen CPU sales. AMD may have won more orders for EPYC from data center customers but seasonal weakness for corporate orders may delay growth rate acceleration until the upcoming quarter.
As long as AMD does not issue a forecast that is far worse than expected, AMD shares should not fall by much. It traded in a narrow range since Nov. 2018 because markets still believe the long-term growth story.
Tech Insider
