Advanced Micro Devices (AMD) Stock Investment Guide 2025: Price Insights & Company Overview

Essential Insights for Investing in Advanced Micro Devices (AMD) in 2024

Advanced Micro Devices, Inc. (AMD) stands as a global leader in semiconductor technology, delivering cutting-edge microprocessors (CPUs), graphics processing units (GPUs), server and embedded processors, semi-custom system-on-chip (SoC) solutions, and gaming console technologies. AMD also provides development services and licenses portions of its intellectual property to enhance innovation. Their products power high-performance computing applications across 5G networks, AI, analytics, gaming, and cloud infrastructure.

Founded in 1969 by a team including Jeremiah Sanders, AMD began as a Silicon Valley startup focused on semiconductor innovation. The company launched its first product in 1970 and went public in 1972. In 2008, AMD strategically split into two entities: AMD, focusing on microprocessor design, and GlobalFoundries Inc., specializing in chip manufacturing.

Headquartered in Santa Clara, California, AMD is led by CEO and Chair Dr. Lisa Su, a visionary in semiconductor advancement. Operating within the technology sector and semiconductor industry, AMD competes primarily with Intel Corp. (INTC) and NVIDIA Corp. (NVDA). In fiscal year 2021, AMD reported a net income of $3.2 billion on $16.4 billion in revenue, underscoring robust financial health.

Key Highlights

• AMD specializes in high-performance semiconductor products for data centers, PCs, and gaming.
• Principal competitors include Intel and NVIDIA.
• FY 2021 revenue reached $16.4 billion with $3.2 billion net income.
• AMD's acquisition of Pensando Systems for approximately $1.9 billion enhances its cloud infrastructure capabilities.

Latest Developments in 2024

• In May 2022, AMD introduced new processors optimized for Chrome OS, expanding its market reach.
• April 2022 marked AMD's agreement to acquire Pensando Systems, strengthening its portfolio in distributed cloud services.
• February 2022 saw AMD approve an $8 billion share repurchase program, reflecting confidence in growth and shareholder value.
• AMD completed its $50 billion acquisition of Xilinx in February 2022, integrating FPGA and adaptive SoC technologies to diversify product offerings.

AMD's Strategy Amid Global Chip Shortage

The COVID-19 pandemic triggered unprecedented demand for electronics, straining semiconductor supply chains worldwide. Factors like factory disruptions and geopolitical tensions intensified the global chip shortage, affecting industries from automotive to gaming. Manufacturing new semiconductor fabs involves multi-billion-dollar investments and years of development.

AMD, relying on third-party foundries, has effectively managed supply constraints by forecasting demand years ahead and focusing on advanced chip designs less impacted by shortages. CEO Dr. Lisa Su anticipates supply easing in the latter half of 2024, emphasizing strategic collaboration with customers to optimize supply chain efficiency. The Xilinx acquisition further solidifies AMD's industry position, ensuring priority access to manufacturing capacity.

Leadership: Dr. Lisa Su

Dr. Lisa Su, AMD's CEO and Chairperson, has been pivotal in driving the company's resurgence since joining in 2012. Her leadership as former COO and SVP has steered AMD towards innovation and market expansion, reinforcing its competitive edge.

Stock Splits History

AMD has executed six stock splits to date, enhancing shareholder value and liquidity:

• August 7, 2000: 2-for-1 split
• July 22, 1983: 2-for-1 split
• September 27, 1982: 3-for-2 split
• September 22, 1980: 2-for-1 split
• September 24, 1979: 3-for-2 split
• September 27, 1978: 3-for-2 split

Top Shareholder

The Vanguard Group Inc. holds the largest stake in AMD, owning approximately 137.2 million shares (8.4% of outstanding shares) valued near $15 billion as of April 2022.

Dividend Policy

AMD prioritizes growth and reinvestment, currently not offering dividends to shareholders.

American Roots

Founded and headquartered in the United States, AMD remains a prominent Silicon Valley-based technology company driving innovation globally.

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