Attractive line of products driving growth for AMD
AMD (AMD) stock has had a great run this year. Its stock has increased by 54% year-to-date. AMD announced that it will now become a part of the NASDAQ 100 Index due to its growing market cap. The NASDAQ 100 is an index of the 100 largest non-financial companies based on market capitalization. Let’s discuss what drove AMD’s stock price and market cap this year.
AMD has gained share in the desktop, laptop, and GPU (graphics processing unit) market mainly driven by its flagship Ryzen processors. The Ryzen portfolio of processors includes the Ryzen 5, the Ryzen 7, and the Ryzen Threadripper processors. AMD is also gaining share in the server CPU market through its EPYC chips. The Amazon Web Services (AMZN) and Microsoft (MSFT) Azure cloud platforms have adopted EPYC chips.
AMD’s future line of products also looks attractive. The company plans to launch the second generation of its EPYC server CPUs and Vega server GPUs soon. Another important announcement that AMD made was the launch of the 7-nanometer data center products early next year. Intel (INTC), on the other hand, has delayed the launch of 10-nanometer products until the end of next year.