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 big, significant hardware companies that are constantly improving and upgrading - but to investors, there seems to be only one clear champion, and it is Dr. Lisa Sue's red team that has pink futures 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 actually a vote in the feet of some investors, who are convinced that the company has reached their potential peak of growth, and henceforth is expected to tread on the spot or even decline in scope - mainly due to cloud computing estimates 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 champagne with an increase of about 25 percent in market value in recent days - after the publication of the complete quarterly 2018 financial report that marks a full year of first year increases 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 penalty for the unused difference.
A lot of things have changed since then, and GlobalFoundries has announced a move to the cutting edge of the chip industry for a focus on dedicated manufacturing processes and tailored to specific needs of particular companies - which actually requires 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 chips and chips in lithographs more advanced than any other player without any fee for GloFo - when at the same time the company is 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 allowAMD Maintain maximum competitiveness at the top, while also justifying recent hybrid and modular architecture selections - I / O chips will continue to be based on large, relatively straightforward manufacturing processes in the foreseeable future, while the 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.