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 They are two large and significant hardware companies that are constantly improving and upgrading - but in the eyes of investors it seems that there is only one clear champion, and that is the bunch in the red of Dr. Lisa Sue La Pink Future Contracts 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 fall in the value of the company is in fact a vote in the feet of some of the investors, who are convinced that the company has reached the peak of their potential boom, and henceforth the expectation is a stepping stone or even a decrease in success - mainly due to estimates 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, AMD Can open champagnes with a 25 percent increase in market value in recent days - after the publication of the complete quarterly economic report for 2018 which marks a full 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,AMD 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 AMD 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 pay a fine for the unused difference.
A lot has changed since then, and GlobalFoundries has announced an exit from the race to the cutting edge of the chip industry's cutting edge in favor of focusing on dedicated manufacturing processes tailored to the specific needs of certain companies - which actually obliges the AMD 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,AMD Purchase 7 nanometer chips and chips in more advanced lithographs than any other player without the need for any payment for GloFo - while at the same time the company will be committed to purchasing 14 nanometer and 12 nanometer chips from the nearest partner on a pre-determined scale by 2021.
This is an important message that will allowAMD Maintain maximum competitiveness at the top end, while further justifying the choice of the recently introduced hybrid and modular architecture - I / O chips will continue to be based on relatively large and simple manufacturing processes for the foreseeable future, while processing cores themselves can benefit from the most advanced and sophisticated technologies.
The hardware market is dynamic and constantly changing, but it seems that at least for now,AMD Expecting a bright future of galloping ahead. Agree with them? Share comments with us.