Advanced Micro Devices (AMD) is, at the moment, the second largest CPU manufacturer, next to its fierce rival Intel. The company reported that the revenue in the last quarter of 2019 met their expectations and they predict a promising future during 2019.
What Does the Forecast Say?
Well, AMD is pretty optimistic about their future. Just a couple of years ago, their profit was 8 cents per share, as said by Bloomberg. But, for 2019, AMD’s revenue will rise to an almost two-digit number, with the predictions saying that we should expect an increase of 6 percent. Their optimistic prognosis was followed by the less-optimistic forecast of two tech giants – Intel and Nvidia.
AMD vs Intel in 2019
Back in 2018, both AMD and Intel were relatively successful. However, our prognosis is more promising for AMD in comparison to Intel and here’s why. AMD Ryzen CPUs brought back AMD to life and in 2018, they gained a 23% increase in market share from Intel. Intel, on the other hand, saw a modest 13% revenue increase as they bumped up the prices of their CPUs on the market. In the next couple of years, AMD could significantly overpower Intel and their monopoly might end.
What about First-Quarter Revenue?
Glancing back at 2018 and its fourth quarter, AMD’s income was $38 million, which is a significant boost compared to the year before. In this period, AMD’s revenue rose to $1.42 billion, which is very close to what analysts’ said – $1.44 million. As for 2019, the predictions from AMD indicate a revenue of $1.25 billion with plus or minus $50 million.
Will AMD Progress Further?
Their shares jumped to an amazing 80% in 2018, and in 2019, Bloomberg expects a similar success and even bigger market share compared to Intel. We’ve yet to see how Intel will respond in terms of products and pricing.