SSVC
2022-11-06

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@Ultrahisham：An Intelligent Play That Pays Off The world is getting smarter. Phones have evolved from fixed lines and really took a major step forward when they became mobile and affordable for the main masses. $Apple(AAPL)$changed the game and stepped up a gear when they dared to convert the phone into a mobile computer and the mobile phone transformed into a smartphone which can do almost everything from surfing the net to watching shows and even writing up assignments! And this life changing device gave rise to the rise of another phenomenon called social media which I have talked about in another article. We are at the cusp of another life changing phenomenon called 'artificial intelligence' and its brethrens. 5G technology has made it all themore feasible as well as the desire of innovative companies to take the next leap and continue leading breakththroughs and stay at the tip of the spear when it comes to technology andmaking the world a better place. $AMD(AMD)$is one company that is leading that move thanks to its array of products and an astute management who knows exactly whatthey are doing and should do. They might be conventionally associated with PC products such as CPUs and GPUs and compared apples toapples (pun intended!) with companies such as $Intel(INTC)$but they have evolved over thelast few years and I believe they will continue to transform. Their latest earnings reflected this. Many spoke about the report in terms of profits, margins etc but the real juice in deciphering the report comes from analysing and comparing previous reports as well as looking at the trends and figuring out what the company wants to do with their acquisitions. And here I will just say that the latest earningsreinforced and showed how the company is povoting from PCs and consumer market to themore lucrative and growing AI market which isdriven by enterprise spend. Despite the PC client segment taking a chunk out of earnings, they still managed to grow and guided to that moving forward thanks to strength in the datacenters and embedded segments. And when you look at big tech forward guidance and massive outlays on capex especially with regards to infrastructure such as data centers, this bodes well for AMD and Nvidia especially looking at the product range they have which are top of the line. And looking at the direction the world is taking, they have a huge growth runway ahead of them. If I were to summarise what I feel about AMD's latest earnings report, I will say look beyond PCs and the cyclical consumer segment. AMD is showing great strength in the areas that matter more and I believe that is what the market saw too and that is why the share prices are showing strength. I have great confidence in companies such as $AMD(AMD)$and $NVIDIA Corp(NVDA)$and Ibelieve they will lead the frontier in the field ofAI/ML thanks to their products which are essential to enable the technology. Thanks for reading! 😊
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