A sweet valentine's day "marrige"
$Advanced Micro Devices (AMD.US)$ "AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP EPS and free cash flow generation in the first year." A surprise to many bears!
"While 16 months ago, scale was one of the drivers for AMD acquiring Xilinx, AMD has increased its revenue to such a point that that Xilinx can benefit a lot more from it than AMD can. I can see Xilinx getting wafer and packaging cost reductions as well as ATMP cost reductions, improving classic Xilinx gross margins." This is something many did not count in to calculate the margin and EPS.
"One of the biggest surprises in my discussion with CEO @LisaSu was that we should see the first AMD processor with Xilinx #AI IP in 2023. "
I see opportunities in AMD bringing its IP and solutions to Xilinx’s embedded markets and vice versa, but I see the biggest opportunity in the datacenter where both companies have different kinds of strengths. AMD has strength in server CPUS and has a line of datacenter GPUs while Xilinx offers IP, products, and expertise in SmartNICs, AI inference, and AI analytics. Marvell invented the SmartNIC, AWS took it to another level and now AMD will be going after that market competing with Marvell, Intel, and NVIDIA. With new AI inference capabilities for the datacenter, I could see AMD having much stronger offerings to compete with both NVIDIA and Intel. AMD, technically, has already been targeting the datacenter AI training market with GPUs but it has not resulted in a high degree of market share success. Xilinx has been focused on AI inference, and their software stacks are more mature and I think will bring much needed software resources and expertise to the party.
https://www.forbes.com/sites/patrickmoorhead/2022/02/14/its-day-one-for-the-combined-amd-and-xilinx-and-ceo-lisa-su-is-energized/?sh=1bd532664c62
"While 16 months ago, scale was one of the drivers for AMD acquiring Xilinx, AMD has increased its revenue to such a point that that Xilinx can benefit a lot more from it than AMD can. I can see Xilinx getting wafer and packaging cost reductions as well as ATMP cost reductions, improving classic Xilinx gross margins." This is something many did not count in to calculate the margin and EPS.
"One of the biggest surprises in my discussion with CEO @LisaSu was that we should see the first AMD processor with Xilinx #AI IP in 2023. "
I see opportunities in AMD bringing its IP and solutions to Xilinx’s embedded markets and vice versa, but I see the biggest opportunity in the datacenter where both companies have different kinds of strengths. AMD has strength in server CPUS and has a line of datacenter GPUs while Xilinx offers IP, products, and expertise in SmartNICs, AI inference, and AI analytics. Marvell invented the SmartNIC, AWS took it to another level and now AMD will be going after that market competing with Marvell, Intel, and NVIDIA. With new AI inference capabilities for the datacenter, I could see AMD having much stronger offerings to compete with both NVIDIA and Intel. AMD, technically, has already been targeting the datacenter AI training market with GPUs but it has not resulted in a high degree of market share success. Xilinx has been focused on AI inference, and their software stacks are more mature and I think will bring much needed software resources and expertise to the party.
https://www.forbes.com/sites/patrickmoorhead/2022/02/14/its-day-one-for-the-combined-amd-and-xilinx-and-ceo-lisa-su-is-energized/?sh=1bd532664c62
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