COMPANY PROFILE -Advanced Micro Devices (AMD)
Business Sector :Technology - Semiconductors
Operating Geography :United States, North America, Global
About Advanced Micro Devices (AMD) :
Advanced Micro Devices, Inc. (AMD) is one of the oldest companies from Silicon Valley, California, USA. It was established in 1969, right after the set-up of its current rival Intel. The founders of AMD were ex-employees of Fairchild conductor, the company where founders of Intel also gained expertise in the semiconductor science and trade as employees before launching Intel. Hence, both the archrivals have similar origins. AMD manufactures and sells all kinds for microprocessors necessary for computation such as CPUs, GPUs, APUs, SoCs and chipsets. Only Intel and AMD rein the segment of microprocessor market for computers and laptops. AMD has always been a second option to Intel, due to its competitor's robust market outreach and best in class products but after 2017, the consumer demand has shifted towards the latest launches of AMD due to its technological advantage in launching the faster 7 nm Ryzen series CPU at an affordable cost to the customers. The company has always been driven by technology and its products are developed at core in sync with latest computing requirements. Apart from processor and graphics business, AMD also provides server solutions to its clients and it is also plunging into the business of chipsets used in mobile handset.
The USP or unique selling proposition of AMD lies in making apt microprocessors for gaming computers in an affordable price range. The vision of AMD states, "High Performance Computing is Transforming Our Lives".
Advanced Micro Devices (AMD) Revenue :
$ 6.7 billion - FY ending 31st December 2019 (y-o-y growth 0.3%)
$ 6.5 billion - FY ending 31st December 2018
Competitive Analysis of Advanced Micro Devices (AMD)
|1. Gaining competitive edge through innovation|
2. Affordable leading player in an oligopoly market
3. Renowned brand with global presence having well balanced distribution of sales
4. R&D and Manufacturing facilities spanning geographic borders
5. Standalone choice in gaming consoles
6. Enjoys huge base of customers among computer gamers
7. Growing popularity in the PC and Laptop segment
|1. Lagging in offerings related to futuristic requirements
2. Improper bifurcation of segments leaving investors confused
3. Dependence on rival for technology
|1. Opportunity to enter the market of handset chipset |
2. Establishing a foothold in developing markets
3. Opportunity in chipset and microprocessor solution in E-mobility
|1. Dying PC segment will affect AMD product line up
2. Collaboration of Intel and Nvidia affects AMD’s growth
3. Rapid change in technology poses high-risk to AMD
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Detailed SWOT Analysis of Advanced Micro Devices (AMD)
Strength1. Gaining competitive edge through innovation: The hardware technology of computers has been subjected to up gradations right since its birth. It is one of the most dynamic fields. The computer processors are run by transistors as their core elements of computing functions. These transistors have decreased in size and increased in performance manifold times. They are known as nodes and measure in nanometer these days due to their extremely small size. The only rival of AMD, Intel has been operating 14nm nodes, whereas AMD has already shifted to 7nm nodes since 2018. This fact attracted users towards AMD. Small size of nodes ensures better output efficiency in terms of performance and consumption of power and also improved designs. Moreover, since the launch of Ryzen series in 2017, AMD has continuously launched breakthrough products, mostly flagship products in the industry. Innovation gave a technical advantage to users of AMD. No longer is AMD a poor man’s Intel. Advanced Micro has invested considerable research dollars into not only competing on price but on quality. For instance, they’ve challenged Nvidia on higher-end GPUs. In 2019, the overall user base of AMD improved from 19% to 21% which mirrors its growing market share. The remaining section of “Strength” is available only in the 'Complete Report' on purchase.
WeaknessThis section is available only in the 'Complete Report' on purchase.
Opportunity1. Opportunity to enter the market of handset chipset: Smartphone is supposed to be the technology tool for the present and upcoming times. Although the smartphone business has stagnated due to current COVID-19 crisis, but it is expected to boom again with the worldwide launch of 5G and other related technologies. AMD can leverage its expertise of performance-based processors for computers, servers and gaming consoles to manufacture chips for smartphones and tablets. AMD has taken the step forward with collaboration with Samsung. Samsung has its own range of smartphones and tablets as well as its own IC facilities. Both industry leaders collaborated in 2019 to develop the Radeon series of GPU and Ryzen C7 processor for the upcoming smartphone of Samsung in 2021. The remaining section of “Opportunity” is available only in the 'Complete Report' on purchase.
ThreatsThis section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Nvidia Qualcomm
Major Brands :
- AMD Radeon
- AMD Ryzen
- AMD Athlon
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References used in Advanced Micro Devices (AMD) Analysis Report
1. 2019 AMD Annual Report - https://ir.amd.com/static-files/480b482b-79ee-4b43-bcda-0d86dedfeb04
2. 3 Key Issues Advanced Micro Devices Stock Faces - https://investorplace.com/2019/11/key-issues-advanced-micro-devices-amd-stock-faces/
3. Intel: Detailing Potential Risk Factors - https://seekingalpha.com/article/4351857-intel-detailing-potential-risk-factors
4. Samsung & AMD mobile chip humiliates Qualcomm in a leaked benchmark - https://www.phonearena.com/news/Samsung-AMD-mobile-chip_id124286
5. AMD "Ryzen C7" Smartphone SoC Specifications Listed - https://www.techpowerup.com/267935/amd-ryzen-c7-smartphone-soc-specifications-listed
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Advanced Micro Devices (AMD) SWOT & PESTLE Analysis - SWOT & PESTLE.COM
SWOT & PESTLE.com (2020). Advanced Micro Devices (AMD) SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/advanced-micro-devices/ [Accessed 05 Dec, 2020].
In-text: (SWOT & PESTLE.com, 2020)
Copyrights and Disclaimer
Advanced Micro Devices (AMD) SWOT and PESTLE analysis has been conducted by Tej Narayan Shaw and reviewed by senior analysts from Barakaat Consulting.