What is your stance on the billion-dollar subsidies for chip manufacturers? I am always a bit skeptical about such grants, especially since I know that not all chips are highly complex future technology. Companies like Intel, AMD, and others also have bread-and-butter business. Let’s take a closer look at AMD!

Advanced Micro Devices (AMD) is the second-largest chip manufacturer after Intel. The company develops and produces microprocessors such as Athlon and Opteron, chipsets, and graphics solutions for the computer, communications, and consumer industries. Production has been outsourced to Taiwan Semiconductor Manufacturing Company (TSMC).

New AI chip brings hope AMD has not presented good numbers for the first 9 months. Revenue has dropped by 8.3% to $16.51 billion. Only $187 million were earned in the end. The reason for the poor numbers is higher operating costs and lower demand for semiconductors, especially in the gaming industry. Demand is expected to recover slightly during the Christmas season.

Demand for PC processors, on the other hand, has increased again. The Ryzen processors are selling so well that they have made a profit for the first time in over a year. In general, there is a negative trend in the industrial semiconductor market. Demand for chips in the industry and for network systems is declining. Demand from manufacturers of communication devices is also decreasing. On the other hand, a growth market is high-performance chips for AI applications. According to experts, the AI market is expected to grow to over $150 billion by 2027.

So far, AMD has hardly profited from the AI hype. This is something AMD wants to change with the new AI chip MI300. Production is expected to ramp up massively by the end of the year. Numerous orders have already been received, especially from large cloud computing customers.

We remain neutral In the long term, it will be crucial for AMD to secure a place in the AI business alongside strong competition from NVIDIA. With the MI300, AMD is on a good path. Since current demand is decreasing, there is strong competition, and AMD does not pay dividends, we remain neutral here.