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- An Undeserved Penalty for AMD
An Undeserved Penalty for AMD
AMD stocks have lost 50% since January 2022 despite elevated demand for semiconductors from data centers and the car manufacturing industry. The major concern of investors was prompted by a statement by the company’s rival Intel that the demand for personal computers is contracting. Intel has lower prices than Alder Lake processors and suspended any recruitments for its production facilities. The company has stopped the construction of new factories as U.S. Congress voted against contributing to the project’s finances. The U.S. Administration had planned to co-fund the project by putting in 30% of $10 billion needed for this project.
How will all this affect AMD? It won’t in anyway. The company continues to hire new employees, and its major market is not personal computers but expensive server equipment. This segment was mostly unaffected by the COVID pandemic. The company had a share of 9% in the segment before the pandemic and it has been increased to 12% in 2022. AMD also increased its share in the smartphone segment to 23% compared to 18% a year ago.
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