Advanced Micro Devices Inc (AMD)

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Semiconductor Watchlist: AMD Is Dominating the Semiconductors
By: TheStreet | April 29, 2021

• See buy or sell recommendations for Nvidia, Qualcomm, NXP, Broadcom, Taiwan Semiconductor, Intel, and more semiconductor stocks.

There has been a huge shortage of semiconductors over the last few months, yet it’s expected that Advanced Micro Devices (AMD) has continued to do quite well.

AMD said Wednesday that it sees June quarter revenues in the region of $3.6 billion, with a range of plus or minus $100 million, and a non-GAAP gross margin of 47%. For the full 2021 financial year, AMD said it sees revenues growing 50% from 2020 levels, indicating a total of around $14.65 billion, as bottlenecks fade and supplies slowly increase over the second half of the year.

The company saw earnings rise 150% from last year to 45 cents per share, with revenues up 92% to $3.45 billion as it stole share from rivals like Intel in the PC market and doubled down on its dominance in gaming chips.

"The entire semiconductor supply chain is very, very tight. I think you hear that from all of our peers in the marketplace," AMD CEO Lisa Su told investors on a conference call late Tuesday.

It’s clear that Intel (INTC) is struggling against AMD and Nvidia (NVDA) - Get Report, the latter of which recently had an impressive rally to new highs after its GTC conference, wrote TheStreet's Bret Kenwell.

"I don't want to own Intel because it's falling behind AMD. AMD is ahead in manufacturing, and semiconductors are a manufacturing business," said Jim Cramer, the founder of TheStreet. "I'd buy AMD."

Bulls are optimistic that AMD is also enjoying a solid quarter, indicative of the rally over the last few days. However, we’ll need more than that if we’re going to see a move to new all-time highs.

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