FINANCE: AMD is about to change everything

September 14th 2018

Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) is about to change the world with its introduction of new products at a price point that puts consumers in the path of “higher” performance computing. The impact of higher performance on personal and business life speaks to the cost of user time and speed with any undertaken task, speed and performance breads a benefit that is measured in exponents.

So what does this all mean in lay terms? It means you are going to buy a new computer, it is going to have an AMD processor in it, it is going to cost less then it ever has as a percentage of your income, you are going to be 20% – 50% more efficient in your day-to-day computer use. The cost of that new computer will dwarf the savings in time and productivity. If you take you savings and apply the same thought to all your friends and businesses you think about, think about it.

So why AMD?
Why AMD? Well, if you follow the broader industry, the chip makers, you know that there are two companies that there are 3 companies licensed to make chip that support the x86 (Windows/Apple/Linux). Those makers are Intel, AMD and Via. Until recently, life was about “Intel Inside”, you remember that? It was a branding campaign that would ultimately associate power and reliability with most every computer sold and most of them with Windows operating system. It was less common to see AMD.

In days of old, AMD graphic adapters (GPU) were consider the absolute top of the line. You need them to run serious engineering programs and for CAD/CAM applications. An offshoot of this technology was gaming. At a time when Intel was killing it in the branding of their processors and spending enough to bury the AMD brand, AMD sought refuge in a space their name was not visible, gaming consoles.

So where is AMD go exactly?
AMD started making video and other boards for the gaming console industry, one of the most competitive industries of the last 12+ years. All the technology directed at and dedicated to supporting the likes of Sony, Microsoft and other top competitors in the space. They had no rival there. They didn’t have to prove, they had to perform! NVIDIA Corporation? It’s a joke by comparison. They have the ears of the “street” and their support to manipulate markets so people make money. As a competitor in this space, they are a non-competitor.

What happens now?
We predicted the rise of AMD in prior posts spanning 3 years. What is about to happen I explained above. The world is about to get a lot more productive as cost the cost of speed lowers and finds it’s way to the $300.00 computer buyer.

Here is why it works:

• AMD is a licensed chip maker of the most popular computing chip platform on the planet
• AMD, unlike NVIDIA, owns the x86 plus graphics taking market share from NVIDIA the “graphics card maker”
• AMD AI – It’s only a matter of time, NVIDIA should be very worried as should Intel
• AMD has the jump on Intel as they work out their strategy to recover from some bad choices, It’s like Windows 8
• AMD has a Ryzen chip that has their AMD graphics engine onboard. Remember above about gaming consoles. The speed of the new chip with the added video on board unitizing the latest manufacturing process (14mn) delivers an entirely new level of computing on a single chip. Intel can’t touch this.
• AMD price point brings power to the people. Intel’s highest performance processors with MARGINAL onboard graphics cost nearly 40%+ more or they did. The economic? Intel is in a world of hurt right now as management doesn’t know who’s steering the ship
• AMD Lisa Su As the company started its rise, I was confident this IBM veteran would deliver value but honestly “the street” had its nosed bloodied when AMD reported better than expected results and did not give them the FREAKING high sign. Ethics and all. At the time I thought she was done, she persisted and the company persisted. They followed the larger vision and the plan. It’s got to be hard watching an inferior like NVIDIA Corporation “play ball” and gain when you’re working towards a much bigger strategy that you can execute on. It’s not

** Author is an active trader of AMD stock