Why?
This is all a very good news for the PC industry, enabling the best-in-class products and technology to many more customers.
This is what we all need - real innovation and more productive PC systems in the ecosystem - from entry PC desktops to supercomputers...
That's not how i meant it, Yahoo Finance, which unlike Seeking Alpha updates the market cap live, they currently have AMD valued at $145 Billion, Intel are valued at $215 Billion.
At this point if or when AMD hoovers up Xilinx that cap will jump to about $180 Billion, with Xilinx it would take AMD's revenue from $20 Billion in 2022 to about $30 Billion in 2023, with the predicted growth. AMD are growing about 30% annually on their own.
AMD's rapid value growth is generated obviously by their success, every quarter they are beating their own estimates which you could argue they are deliberately underestimating their growth, but in fact they are beating recognised analysts estimates by even wider margins, consistently.
These people see AMD consistently delivering on promises, executing their roadmaps always on time and with better than predicted results, they see AMD innovating new technology left right and centre, expanding their business all over the place and constantly defying the few pundits who still dare to say AMD are just a flash in the pan.
Meanwhile their only rival as far as these people are concerned, Intel, are failing to execute their roadmaps, consistently, Intel over promise and under deliver in every metric, their margins are falling because they are having to increase the amount of sugar they bake in to their cakes to keep OEM's from using AMD and still failing to prevent that.
People are starting to drink the AMD coolaid which is great but with it comes expectation, they are starting to see AMD a bit like an Apple or an Nvidia, these people will expect AMD to keep this up and that becomes a problem because if AMD can't keep getting fatter at this rate these people will get upset.
It would be wise for AMD not to touch too much of this mountain of money people are investing in to them, they have already tapped in to $35 Billion of it at $85 a share, if it goes wrong for AMD and these people pull too much of their money out of AMD that money starts to become a debt, currently AMD are debt free, but they are still recovering, right now by this financial statement they have $2.7 Billion in cash, that's actual cash savings, next year that is expected to grow to $5 Billion, that's not a lot, total dissolvable assets today is about $11 Billion, again not a lot. They need a free cash flow of about $20 Billion to be strong, at this rate it will take another 5 years to get there.
So they are still vulnerable. As i said as long as they don't tap too much in to that mountain of investment money they will be good, but they are about to tap in to $35 Billion of it, its a risk but you don't get ahead without taking them.