AMD: A Gamble with Potential?

AMD is currently in a promising growth phase, as the company has seen a profit increase of over 25% this year. This positive trend is expected to continue, with profits projected to increase by an additional 50% by 2025. The revenue driver is also on an upward trend: a revenue increase of over 25% is expected for the coming year, which could push AMD past the $30 billion mark for the first time. Alongside NVIDIA, AMD is the only significant producer of advanced GPU semiconductor systems for accelerated high-performance computing (HPC). This gives AMD a solid position in the market. In the past five years, under Lisa Su's leadership, AMD has transformed from a company with a revenue of merely $5 billion into a serious challenger to NVIDIA in the GPU market. This was achieved primarily through the successful introduction of Instinct processors and the expansion into enterprise solutions, supported by the acquisition of Xilinx and Pensando. In the consumer PC sector, AMD has provided Intel with significant competition through its Ryzen processors. Thanks to its own "Zen" and "Vega" architectures, the company is well-positioned in the market. The acquisition of Pensando was a strategic move to strengthen its presence in the data center environment, with AMD now offering high-performance computing units and the corresponding software environment. AMD, together with NVIDIA, is part of the so-called "AI duopoly," which focuses on the ongoing AI revolution. Both companies consistently offer innovations and are driving the shift from CPU-based to GPU-accelerated data centers. Oracle founder Larry Ellison recently emphasized the impressive growth forecasts for data centers, providing AMD with additional participation opportunities in this lucrative market. AMD will continue to focus on potential acquisitions to expand its lead in artificial intelligence and data center technologies. A key theme in this strategy is the integration of new talent — as demonstrated by the recent acquisition of ZT Systems.