In the year 2020, inventory (NASDAQ:AMD) almost doubled. Powerful game hardware revenues following the latest Pandemic of Coronavirus (NASDAQ:INTC) in the CPU, allowed the chip maker to log remarkable growth in the top- and bottom-line during the year, and as a result investors laughed to the bank.However, it is no wonder that AMD replicates its success in 2021, since there are no catalysts for its development in 2020. Look at the main reasons which could double AMD inventories this year once again.
More CPU player dominant
In the past year, in the CPU market, AMD has made significant strides toward Intel. According to Mercury Research, AMD accounted for 22.4 percent of the CPU x86 market in the end of the third quarter of 2020.
Thanks to its competitive product portfolio focused on a smaller development node and allowing greater processing efficiency to be provided and power usage reduced, AMD has continued to chip the Intel CPU supremacy. For instance, Ryzen 5000 desktop processors from the AMD series recently launched will outperform their Intel counterparts on an independent basis.
The benefit of AMD could expand in 2021 as its new Zen 3 architecture is supposed to be refined. The supply chain cocoon shows that AMD could improve its development process of 7 nanometers (nm) to upgrade the second half of the year’s Ryzen 5000 series CPUs. Compared to the current generation CPUs, the gains may still be incremental, using a 7nm node – but Intel’s disorders will help AMD sustain its technical superiority.
Intel’s 10 nm desktop chips (which are predicted to compete with 7nm AMD chips) were significantly delayed in launching. Chipzilla provides only 10nm Tiger Lake chips on laptops, providing the AMD desktop area with a free run, where the former sells 14nm chips. What’s more, Intel is predicted to maintain trapped on a 14nm steelmaking node for the during much of the year, as its 10nm computer parts have been expected except in the entire first half of the year.
AMD could then have finalized its 7nm process and be able to jump to the Zen 4 (based on the 5nm node) architecture in 2022. Meanwhile, it is expected that Intel will have to play catch-up: the rival 7nm CPUs are expected to hit this platform only in 2023, since the chip giant is a year behind budget.
Not unexpectedly, this year AMD is predicted to dramatically grow its x86 CPU market share. Hans Mosesmann, an analyst at Rosenblatt Securities, prediction that the AMD share will rise to as much as 50% this year, doubling its share at the end of the third quarter of 2020. You can check more information at https://www.webull.com/newslist/nasdaq-amd.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.