Global chip shortage has been a recurring issue throughout the year 2020. This problem has affected the production of smartphones, the automotive industry, gaming consoles, and many other technological devices. However, AMD attempts to overcome the demand by selling as many chips as they can manufacture. AMD targets to release more supplies relatively soon.
AMD chips quickly rose into popularity by providing quality performance for their merchandise. Targeting markets among gamers and content creators, AMD created powerful processors and graphics cards that broke world records for clocking speeds.
The 2020 pandemic has brought many activities to a stop, including the production of chipsets, resulting in the global chip shortage and limited supplies on many products in the market. AMD is working hard to respond to market demand and has been rewarded with a boost in sales.
AMD Earns $3.45 Billion,
As reported by PC World, the chipmaker earned a total revenue of $3.45 billion in the first quarter of 2021. Their net income was $555 million, which is 243 percent higher than its $162 million sales from last year. AMD expects to continue making big sales in the second quarter of this year.
AMD GPU Restocks Coming Soon!
Among its chips sold, AMD makes big sales on their Ryzen 5000 Mobile series and Radeon 6000 GPU lineup. The company is also responsible for supplying GPUs for both Sony's PS5 and Microsoft's Xbox Series X consoles.
AMD explained their strategy to be focused on the high-end market through the announcement made by AMD chief executive Dr. Lisa Su, as quoted in the report, "I think we're seeing traction in the premium ultrathin gaming and commercial [segment], We feel very good about the platforms that we have... A lot of low-end units have come into the market, but our focus on the premium segments have done very well."
The company also plans to alleviate the supply shortage by delivering more GPUs in the second half of 2021. The company is currently investing in buying specific materials and substrates to keep their production lines running. This is similar to the recent strategy Intel used by investing $20 billion in their chipset foundries.
New AMD GPU Project
AMD's computation and graphics segment are built from Radeon and Ryzen processors, which are mainly used in the gaming industry. AMD has not made any commitments on the X86 architecture and Advanced RISC Machines (ARM) technology used for smartphones such as Apples' M1. The company has not released any new products or designs in the ARM segment, but they have responded to note that they are open for orders on custom ARM designs and semi-custom business opportunities.
This is good news for the incoming months, especially for gamers hoping to buy the next generation consoles PS5 and Xbox Series X. If AMD completes their promise, gamers can expect more stocks coming into retailer shops, increasing their chances of purchase. The same could also be said for some of the automotive industry and smartphone community.
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