AMD is decisively increasing its own revenues, and expects to demonstrate a growth of 60% by the end of this year, which many market participants do not expect in the context of limited supply of components. AMD CFO is convinced that in the near future the company will be able to both increase revenue and increase its own market share.
Devinder Kumar took part in the technology conference Deutsche Bank in absentia, expressing confidence that the phased increase in the forecast for revenue growth this year from 37% to 60% is adequate to the capabilities of contractors producing brand products for AMD. Not confident in TSMC’s ability to increase production volumes, AMD would not improve its forecast for revenue growth this year, as a company spokesman explained.
In fact, AMD is confident in its suppliers, and expects the trend of revenue growth to continue not only in 2022, but also in 2023. For the sake of satisfying AMD’s ambitions, the same TSMC increases the volume of production of the brand of the same name. In general, the situation with the availability of components in the industry should improve in the next year, according to the company’s CFO.
With limited resources, AMD prefers to prioritize the supply of server processors. The customer segment comes in second place, but preferably in the upper price range. Prompt customer feedback is an important element of successful logistics. If a computer manufacturer, for example, lacks third-party components, then AMD will not supply it with an excess of its own processors that would simply go unclaimed.
Over the past two years, AMD has been able to double its market share in terms of revenue, it is this criterion for the company that will remain the most important in its further development, although in physical terms it is going to increase the volume of product shipments. There is still potential for growth, regardless of the general situation with sales of personal computers. In certain market niches, according to AMD management, the brand’s products are not yet well represented.
Of course, Devinder Kumar would not have been CFO if he hadn’t added in the end that AMD intends to maintain high margins by opting for value-added products. Server processors in this respect are the most profitable products for the company. In the customer segment, AMD is trying to focus more on gaming solutions, promote products in the commercial sector, and target enthusiasts with a good budget.