Monday, November 8th 2021

AMD Stock Jumps 10% on Monday, Propelled by Meta (Facebook) Deal

AMD on Monday made several major announcements covering different parts of its enterprise product roadmap. These included the 3rd Gen EPYC "Milan-X" processors with 3D Vertical Cache memory; Instinct MI200 CDNA2 compute accelerators, and announcements related to next-generation "Zen 4" based EPYC "Genoa" and "Bergamo" processors that come with core counts as high as 128. The company's stock rallied up to 12%, closing up 10%, which left many in the tech community scratching their heads. It turns out that the AMD-Meta deal has a profound impact on investors.

Meta, the holding company of Facebook covering all its businesses, aspires to be a major cloud solutions provider on par with Microsoft Azure, AWS, and Google Cloud. The deal could see Meta buying large stocks of AMD processors and compute accelerators to drive its next-gen server infrastructure. Sales of enterprise processors doubled year-over-year for AMD, and EPYC processors now account for 20% of the company's revenues.
Add your own comment

17 Comments on AMD Stock Jumps 10% on Monday, Propelled by Meta (Facebook) Deal

#2
Basard
Strange times......
Posted on Reply
#4
z1n0x
Darmok N JaladI thought AMD was supposed to be over?
"Any day now!" - blue/green troll ;)
Posted on Reply
#5
watzupken
Darmok N JaladI thought AMD was supposed to be over?
Why so? Intel has nothing to match AMD on the enterprise/ data center side of things at this point. Sapphire Rapids is supposed to bring some serious performance bump for Intel next year, but I wonder if the high peak power consumption will be a blocker for companies to buy/ deploy it in large numbers. Intel still dominates this market when we look at the market share, but I that number is being chipped off by AMD and ARM over the years, due to variety of reasons, with power consumption being one of the factors if I am not mistaken.
Posted on Reply
#6
Crackong
Intel claims total dominance
Investors says otherwise
Posted on Reply
#7
Imsochobo
watzupkenWhy so? Intel has nothing to match AMD on the enterprise/ data center side of things at this point. Sapphire Rapids is supposed to bring some serious performance bump for Intel next year, but I wonder if the high peak power consumption will be a blocker for companies to buy/ deploy it in large numbers. Intel still dominates this market when we look at the market share, but I that number is being chipped off by AMD and ARM over the years, due to variety of reasons, with power consumption being one of the factors if I am not mistaken.
And performance, performance isn't there at all atm, and haven't been for a while.
Posted on Reply
#8
Logoffon
I thought the stock is supposed to go down considering how sketchy Metadata/Fakebook is.
Posted on Reply
#9
Easo
LogoffonI thought the stock is supposed to go down considering how sketchy Metadata/Fakebook is.
People, please stop living in some alternative reality, it was already annoying with "Intel be dead!" nonsense. Facebook (stop being edgy) is a cash pile everyone wants a piece of. It's stock situation is absolutely fine.
Even if they were to be broken still not much would change for the resulting companies.
Posted on Reply
#10
ARF
Excellent. AMD will be larger than Intel. Intel will be the underdog. The world is changing. Happy times :)

Posted on Reply
#11
medi01
That MI200, cough:


but god forbid we mention bad news for NV.

ARFAMD will be larger than Intel.
Only in mcap sense. But then, we have NV that is 3+ times Intel. A total joke, but when there are hundreds of billions "invested" into cryptobazinga, heck, well, it feels almost logical.
Posted on Reply
#12
Guwapo77
ARFExcellent. AMD will be larger than Intel. Intel will be the underdog. The world is changing. Happy times :)

Every time I see the stock price of AMD today, I think back to 2002 ballpark when it was trading for $1 a share. I thought, maybe I should buy, but didn't. Now I just wallow in self pity.
Posted on Reply
#13
medi01
It's not "Facebook".
It's the trio:

Facebook
Instagram
Whatsapp

with 3+ billion user reach.

Only google is somewhat bigger, but not by much.


AMD already coined Twitter with last year's EPIC.
But Twitter is small in comparison (only about 200 million daily users).
If you were wondering, why our Californian Overlords lashed out against Parler, during Trump Revolt(tm): he alone had 65 million followers. Had major part of them jumped to Parler, Twitter would get a major competitor.
CrackongIntel claims total dominance
Investors says otherwise
That's actually an interesting point, when watching stock price over the last year.
INTC grew but slightly.
AMD went bananas.
NVDA is overheat as heck.
Posted on Reply
#14
Fluffmeister
Darmok N JaladI thought AMD was supposed to be over?
They certainly aren't the underdog charity case anymore.

Some here can now take down their Ruby posters.
Posted on Reply
#15
Vya Domus
Doubt this had to do much with the Facebook thing, AMD is simply showing that they have good products that are soon going to be on market. By the way, I just realized AMD is worth more than IBM.
medi01That MI200, cough:


but god forbid we mention bad news for NV.
To be honest, they're pulling out all the stops with these, multi-chip, huge dies, massive amounts of HBM.
Posted on Reply
#16
kanecvr
Guwapo77Every time I see the stock price of AMD today, I think back to 2002 ballpark when it was trading for $1 a share. I thought, maybe I should buy, but didn't. Now I just wallow in self pity.
Same here... I seriously considered buying AMD stock in 2016 or 2017 when they announced Ryzen... then decided to wait for first reviews. After the reviews, AMD stock price was still dirt cheap compared to today - but not to risk it. Now I'm kicking myself...
Posted on Reply
#17
efikkan
LogoffonI thought the stock is supposed to go down considering how sketchy Metadata/Fakebook is.
Ever heard of the word hype? ;)
kanecvrSame here... I seriously considered buying AMD stock in 2016 or 2017 when they announced Ryzen... then decided to wait for first reviews. After the reviews, AMD stock price was still dirt cheap compared to today - but not to risk it. Now I'm kicking myself...
You know what they say about hindsight…
While I encourage everyone to invest, I would like to remind you that most investing in individual stocks will end up losing money, so I discourage investing in individual stocks on general basis, as most will end up making bad decisions over time. The sensible investment for non-experts is in investment funds, a decent index fund can typically do 10% annually (actively managed funds can do way better than that), so that should be the baseline you compare your investment skills to. Can you consistently beat that over time? (I can't)

My point is, by the time you hear about a stock going great in the news, it's usually too late to get huge returns, so I hope that you and others don't get tempted to buy AMD stock now. The time to buy AMD stock was like you said 5+ years ago, because smart investors buy stock when it's undervalued, and they sell stock when the stock starts to skyrocket, not at the peak as many think. Now that the stock price is close to or already passing the company's intrinsic value, you get into speculation territory, and the smart investors will start to sell, and the "fools" will take over.
So you might regret not buying AMD stock back then, but even if you had great success on one stock, would you honestly be able to replicate that every time? ;)
Posted on Reply
Add your own comment