Being Second Best Isn't Bad for AMD

"Being second best” isn’t the problem for Advanced Micro Devices (AMD). The company’s success is driven from closing the gap between CPU technologies - it isn't based on beating Intel's technology. To that end, the company deployed 14nm process in order to close the technology gap.

In the past, AMD’s technology problem stemmed from being on a lagging process node. That problem is now solved amid GlobalFoundries’ push into advanced processing technologies powered by the likes of Samsung (SSNLF) and IBM Corp. (IBM).

There is no point to inking pages in discussing the performance of Ryzen, Epyc and Threadripper. There is a lot of material around the web covering the performance aspect. The point is that AMD successfully closed the performance gap between its technology and the technology of Intel. This will lead to market share gains going forward.

AMD has closed the technology gap, thanks to 14nm process technology and Jim Keller's designing capabilities. Lagging technology doesn’t affect the bull thesis at all, as the thesis was based on narrowing the technology gap. If AMD were to beat Intel, it should be in Intel’s place in terms of market cap. Anyhow, “second best” is a moot point as far as the investment thesis is concerned.

Regarding multi-threading, AMD is a serious threat to Intel in the datacenter market. China’s market is already showing signs of AMD's product adoption. Ryzen is completely different compared to Bulldozer. Bulldozer’s failure won’t be reflected in Ryzen. Thanks to crypto currencies, AMD’s GPU side has the time to make amends. The balance sheet is indicative of healthy business coming the company’s way.

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