AMD Hardware is a company whose fates over the last ten years have been very interesting. Back in 2007, the company, which makes chips for PCs and servers and also graphics cards heavily used in the gaming market, saw its price drop below $16 per share and decline from there, hitting lows of $2 per share in early 2016. However, the strategies of relatively new CEO Lisa Su have led to a massive rise in the company’s orders and profile, and therefore its share price, which hit a ten year high recently and is now close to its pre-2007 crash prices.
How Has Lisa Su Turned Things Around For AMD?
While Su maintains that the long term focus of AMD is on the gaming market, she made some significant gains by going for a more immediate niche with a raft of new chip products – the cryptocurrency mining market. Block chain technology and cryptocurrency mining have created some new needs in the server chip sector, and this is something AMD have looked to leverage. In the second quarter of 2017, AMD had a 19% jump in revenue, largely attributable to its Epyc server chips, as well as its Ryzin desktop PC chips. The Epyc chips are used a lot in mining for cryptocurrencies such as Bitcoin, and this has undoubtedly helped the popularity of AMD’s current generation of chips.
How Are Things Looking for AMD for the Rest of 2017?
Whatever type of trading you are into, from investing in shares in the actual business or things like trailing stop limit based trading, the AMD Hardware stock is likely to continue to be an interesting prospect for the rest of the year. There are a number of reasons for this. Their latest gaming graphics card is going to be used in the next generation of the popular Apple iMac Pro, which is certain to garner a lot of interest (and revenue). AMD also plans to release a laptop version of the popular Ryzin desktop chip ahead of the Christmas rush, when a lot of people invest in new hardware either as Black Friday bargains for themselves or as gifts. It looks like the successes of the first half of 2017 are likely to be built on, and AMD will strategically return to its main niche market of PC gamers.
Should You Invest in AMD?
It seems likely that AMD will enjoy a good 2017, and those who had the foresight to buy their shares at their lower prices last year are no doubt very happy with the performance Lisa Su has brought out of the company. It is unlikely they have peaked just yet, though the dramatic rise has probably already happened. If you are holding some AMD shares right now, it is probably wise to keep them rather than selling and taking advantage of the current good pricing, as most tech analysts predict that the products yet to come are going to fare well.
Lisa Su’s strategic moves for AMD as well as the quality and desirability of their actual chips are certainly impressive, and they are now back to being a serious rival to NVIDIA and Intel both in terms of products, and the stock market.