Pandemic Caused Demand Favored Advanced Micro Devices Inc.

“2020 was really a fantastic year, sort of an inflection point for the company. We did revenue over $9.7 billion which is actually a record in our 51-year history.”. AMD’s CEO, Lisa Su, in a CNBC interview said that they’ve seen robust demand across their data center PCs and gaming market segments. “We did see the data center strengthened as we went through the end of last year and going in 2021. We see very strong demand driven by the trends, the importance of the cloud, and all of the build-out there, the strength of our product portfolio and our focus on the data center.”.

Advanced Micro Devices, Inc. (NASDAQ: AMD) is a multinational company that is an expert in manufacturing semiconductor devices used in computer processing. The company currently has a $107.6 billion market capitalization. It successfully delivered a commendable 79.70% return in the past 12 months and settled at $88.86 per share at the closing of February 2nd. AMD’s revenue in the Q4 of 2020 was around $3.24 billion, up by 53% year-over-year, while 45% is the number for its gross margin, and its operating income increased to $570 million compared to $348 million a year ago.

“We are excited about the prospects in the data center in 2021 as well as of the other markets that we are in.”. Lisa Su mentioned that they are all focused on the products they deliver to their customers and accordingly, AMD’s products are developed in a lot of years so customers can expect a material that is worthy of the price they pay. “It is the best product portfolio that we’ve had in our history”, she marked while also noting that the company recently launched a new set of mobile products that are going to high-end notebooks for gaming, commercial and premium uses. “We’re very excited about an upcoming launch of our new data center processor. This is our 3rd generation of data center processors that again take performance to the next level and I think we all see that technology is so important under this backdrop,”.

It can be noted that there is a growing view about tech spending, that it went into a defensive mode last year because of the pandemic. However today, companies operating in remote work turned to be more offensive in spending on things like data analytics. “The pandemic has shown that tech is so important. In 2020, the work from home and school from home trends. People actually had a different relationship and wanted more out of their technology so there was an upgrade cycle around that I think as we go into 2021, many of those trends will continue,”, said Lisa Su while adding that the upgrades of technology were at some point because of the pandemic and of course the modernization of technology infrastructure.

For her final words, Su concluded that, “I think people need the newest generation technology. I think our goals are to help our customers and partners through that transition and that is part of the reason we had a very strong outlook for 2021. Our 2021 outlook will grow 37% which is again off of a very strong 2020 because of those tech trends as well as the strength in some of our new product launches.“.