The market value of the green chip developer is cut with a warning about reduced revenues, while that of the red competitor continues to rise as part of another qualitative quarter and positive news
There is no argument that AMD as well NVIDIA Are two big and significant hardware companies that are continually improving and improving - but investors seem to have only one clear champion, the red band of Dr. Lisa Soo, predicting a bright future in the near term.
Stock company NVIDIA (Nasdaq: 15), which has already made a slight correction (with a slight correction since then) with an official announcement that revenues for the fourth quarter of the year (2018) will actually be lower by 2019 than expected, 500 billion of them evaluated in the earlier developer.
The company's Zhen-San Huang is still expected to show handsome profits and possibly record highs, but has to admit that the demand for expensive Turing chips is lower than expected, especially in China, as well as the development of information server processing,tesla, Is slower than desired.
The decline in the value of the company is actually a vote in the feet of some investors, who are convinced that the company reached its peak potential prosperity, and hence the expectation is to tread instead or even decrease success - mainly because of assessments that cloud computing May swallow a large part of the requirement to experience personal information servers, thereby significantly reducing this category.
On the other side of the road, I HAVE D Can open champagne with an increase of about 25 in market value in the last few days - after the release of the full quarterly economic report for 2018, which indicates a year full of increases for the first time in more than a decade.
The red developer reported revenues of 1.419 billion in the final quarter of 2018 with a net profit of 38 million, and total revenues of 6.475 billion for the year as 23 increased by more than 2017, and net profit of 514 million compared to 103 million a year earlier so.
In addition to significant increases in processor sales for both the home and server markets,I HAVE D There was a new agreement with the chip maker GlobalFoundries, The former manufacturing arm of the company itself, which will not be required to pay royalties as part of the use of advanced 7 nanometer chips from other manufacturers in the field.
In the separation of I HAVE D Of its own chip manufacturing capabilities and its transformation into a separate independent company, an agreement was signed requiring the chip developer to purchase a predefined minimum quantity of chips (or entire fiber chips) directly fromGlobalFoundries - or to pay a penalty for the unused difference.
Much has changed since then, and GlobalFoundries has announced that it is moving from the race to the cutting edge of the chip industry in order to focus on dedicated production processes tailored to the specific needs of certain companies - I HAVE D To contact other manufacturers to manufacture advanced 7 nanometer products and royalty payments to GloFo at the same time.
Now, a new agreement between the companies adapts itself to the new reality,I HAVE D Purchase 7 nanometer chips and chips in more advanced lithographs than any other player without any fee for GloFo - when at the same time the company will be committed to purchasing chips 14 nm And 12 nm from the nearest partner at a predetermined scale up to 2021.
This is an important message that will allowI HAVE D To maintain maximum competitiveness at the top and at the same time to further justify the selection of the recently introduced hybrid and modular architecture - I / O chips will continue to be based on relatively large and simple production processes in the foreseeable future, while the processing core itself will benefit from the most advanced and sophisticated technologies that will deliver maximum performance.
The hardware market is dynamic and constantly changing, but it seems that at least for now,I HAVE D Expecting a bright future of galloping ahead. Agree with them? Share comments with us.