In this article, we discuss the 5 largest chip producers in the world. In order to read our detailed analysis of the chip manufacturing industry, its history, performance, and outlook for future growth, go directly to 12 Largest Chip Producers In The World.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 69
Market Cap: $186.79 billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) makes graphic processing chips, microprocessors, motherboard chipsets, and embedded processors for personal computers, servers, and workstations. Its main clients include Google, Twitter, Microsoft, Hewlett Packard Enterprise, Lenovo, and Dell. In November 2021 the firm also signed Meta Platforms Inc (NASDAQ:FB) as a customer for its EPYC data center chips, which are used for high-performance functions such as cloud computing or inside large enterprises, and which cut power usage by around 25%.
On March 15, Advanced Micro Devices, Inc. (NASDAQ:AMD) unveiled the world’s most advanced desktop gaming processor, the AMD Ryzen 7 5800X3D processor, which delivers 15% more gaming performance compared to processors without stacked cache technology. In 2022, Advanced Micro Devices, Inc. (NASDAQ:AMD) plans to launch 5nm Zen 4 CPUs in 2022, which could include an integrated RDNA 2 GPU, to allow AMD to compete against Intel and Nvidia in CPUs and GPUs simultaneously. In the first half of 2022, industry analysts expect Advanced Micro Devices, Inc. (NASDAQ:AMD) to continue to take market share from rival Intel in server chips.
On February 24, Advanced Micro Devices, Inc. (NASDAQ:AMD) announced that its board of directors had approved an $8 billion share repurchase program, with company CEO Lisa Su noting “With our strong financial performance, we are able to increase investments to drive long-term growth while returning additional value to our shareholders.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) recorded revenue of $16.43 billion for 2021, a 68.33% increase from 2020. As of March 25, the firm’s shares have gained 54.59% in the last 12 months, and 10.64% in the last six months. In the fourth quarter, Fisher Asset Management upped its stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 27%, to almost 20 million shares valued at $2.87 billion.
Carillon Tower Advisers, an investment firm, discussed Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter, stating:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
