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Following the impressive Q2 revenue report and a bullish call from the Bank of America, AMD may become America’s next $100 billion chip company.
Bank of America Corp (NYSE: BAC) believes that Advanced Micro Devices Inc (NASDAQ: AMD) may be on its way to becoming America’s next $100 billion chip company. The tech company has been trailing impressive runs bolstered by its profitable Q2 earnings released on July 28. The company’s CEO Dr. Lisa Su said in a statement:
“We delivered strong second-quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago. Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in different markets.”
Like key tech firms whose Q2 results have been posted, AMD stock has since turned bullish since the earning was declared. The stock at press time is trading at 0.43% higher at $77.76. This run could be in part stirred by the Bank of America’s optimistic call on the stock but the tech company’s recent product offering is earning it a seat amongst Wall Street’s large market cap companies.
AMD History and Emergence
Advanced Micro Devices Inc (AMD) is an American multinational semiconductor company based in Santa Clara, California. It is a highly tech-focused company that develops computer processors and related technologies for business and consumer markets. While it initially manufactured its own processors, the company later outsourced its manufacturing, a practice known as going fabless, after GlobalFoundries was spun off in 2009.
AMD’s main products include microprocessors, motherboard chipsets, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded system applications.
AMD has shown leadership in the emerging tech ecosystem over the years. Coinspeaker reported its partnership with ConsenSys to develop W3BCLOUD, a reliable infrastructure for the growing blockchain ecosystem. Its many ventures in blockchain technology have also seen it form a partnership to develop the next generation of blockchain-powered gaming.
New Products Driving AMD as a Prominent Chip Company
The $100 billion market capitalization run of AMD may be spiked by the company’s exclusive product offerings. For a while now, AMD has been cashing out with its 7nm CPUs and GPUs and is about to launch 7nm semi-custom chips for the next-gen Xbox Series X and PlayStation 5 consoles.
In addition, Tweaktown noted that AMD is about to unveil its RDNA 2 graphics architecture and a family of next-gen Radeon RX graphics cards as well as the new Zen 3 architecture and Ryzen 4000 series desktop CPUs that aren’t too far away.
For a company with such planned products with the potential of taking its competitor’s market share, the market cap of $91.67 billion may be just it’s recorded low as it AMD journeys to become a prominent chip company