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AMD Stock Up 0.43%, AMD Could Be Next $100B Chip Company

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Following the impressive Q2 revenue report and a bullish call from the Bank of America, AMD may become America’s next $100 billion chip company.

Bank of America Corp (NYSE: BAC) believes that Advanced Micro Devices Inc (NASDAQ: AMD) may be on its way to becoming America’s next $100 billion chip company. The tech company has been trailing impressive runs bolstered by its profitable Q2 earnings released on July 28. The company’s CEO Dr. Lisa Su said in a statement:

“We delivered strong second-quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago. Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in different markets.”

Like key tech firms whose Q2 results have been posted, AMD stock has since turned bullish since the earning was declared. The stock at press time is trading at 0.43% higher at $77.76. This run could be in part stirred by the Bank of America’s optimistic call on the stock but the tech company’s recent product offering is earning it a seat amongst Wall Street’s large market cap companies.

AMD History and Emergence

Advanced Micro Devices Inc (AMD) is an American multinational semiconductor company based in Santa Clara, California. It is a highly tech-focused company that develops computer processors and related technologies for business and consumer markets. While it initially manufactured its own processors, the company later outsourced its manufacturing, a practice known as going fabless, after GlobalFoundries was spun off in 2009.

AMD’s main products include microprocessors, motherboard chipsets, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded system applications.

AMD has shown leadership in the emerging tech ecosystem over the years. Coinspeaker reported its partnership with Consensys to develop W3BCLOUD, a reliable infrastructure for the growing blockchain ecosystem. Its many ventures in blockchain technology have also seen it form a partnership to develop the next generation of blockchain-powered gaming.

New Products Driving AMD as a Prominent Chip Company

The $100 billion market capitalization run of AMD may be spiked by the company’s exclusive product offerings. For a while now, AMD has been cashing out with its 7nm CPUs and GPUs and is about to launch 7nm semi-custom chips for the next-gen Xbox Series X and PlayStation 5 consoles.

In addition, Tweaktown noted that AMD is about to unveil its RDNA 2 graphics architecture and a family of next-gen Radeon RX graphics cards as well as the new Zen 3 architecture and Ryzen 4000 series desktop CPUs that aren’t too far away.

For a company with such planned products with the potential of taking its competitor’s market share, the market cap of $91.67 billion may be just it’s recorded low as it AMD journeys to become a prominent chip company

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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BIS Chief Blasts Bitcoin’s Viability, Prompting Blowback From Advocates

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The chief banker at the bank for central banks, Agustín Carstens, cast doubts on bitcoin’s long-term viability Wednesday, saying it was only a matter of time before a 51% attack brings down the world’s original cryptocurrency.

Carstens’ comments, which he delivered to the Hoover Institute, underscored his belief that bitcoin fails as a currency, a medium of exchange and a value storage mechanism, working only as a “speculative asset” and seldom as money.

He also issued a dire warning to would-be bitcoin investors: the center cannot hold:

“Above all, investors must be cognizant that Bitcoin may well break down altogether. Scarcity and cryptography alone do not suffice to guarantee exchange,” he said.

Carstens then levied attacks against the attributes that have kept bitcoin running. He pointed out the “sad side effect” of bitcoin’s monstrous electricity dependence, which he said is as high as Switzerland’s where the Carsten’s organization, the Bank for International Settlements, is based. Bitcoin’s proof-of-work mechanism currently burns through reams of energy.

Carstens reserved particular bombast for what he framed as the inevitable systems failure hard-coded into bitcoin’s 21 million issuance cap. Fewer coins getting minted means fewer miners processing transactions, he said, and confirmation wait times will go up. So too will bitcoin’s vulnerability to a “majority attack.”

“So, clearly, if digital money is to exist, the central bank must play a pivotal role, guaranteeing the stability of value, ensuring the elasticity of the aggregate supply of such money, and overseeing the overall security of the system,” he said.

Bitcoiners were merciless in their rebuttal.

Jameson Lopp, chief technical officer at bitcoin storage startup Casa told CoinDesk Carstens’ arguemnt fails to stand up to bitcoin’s technical realities.

“Bitcoin becoming attackable like other networks is not likely, because it would still require a large upfront capital expense for someone to acquire the appropriate hardware. This would only make sense in a world where another SHA256 secured network came along and became far more valuable to mine than Bitcoin,” he wrote in an email.

Castle Island Ventures partner issued CoinDesk a point-by-point takedown of Carstens arguments, asserting that volatility does not mean something cannot be money, and that it doesn’t matter one way or another if bitcoin is money, because it is “a means to store value over time and space,” a job that Carter said bitcoin does better than gold.

Carter also said Bitcoin network’s energy dependence is a function of price and issuance, not security or necessity.

“Regardless, the energy cost is well worth paying, because the existence of a non-state monetary commodity is something that the world finds valuable,” Carter said.



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Microsoft Strong Ad Revenue Drives Optimism Among Alphabet & Facebook Investors

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The strong advertising revenue comes from Microsoft’s LinkedIn social network. This also indicates a strong uptick in advertisers’ activity leaving the pandemic woes behind.

On Tuesday, January 26, Microsoft Corporation (NASDAQ: MSFT) announced its Q4 2020 results exceeding analysts’ expectations. The company announced a solid $2.04 earnings per share against the expected $1.64. Also, the revenue of Microsoft during Q4 2020 was $43.08 billion against $40.18 billion expected.

Microsoft’s revenue has grown at 17% on annualized basis against 12% growth in the previous quarter. The Azure cloud revenue grew by a stellar 34%. Amy Hood, executive vice president and chief financial officer of Microsoft said:

“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year. We continue to benefit from our investments in strategic, high-growth areas.”

Revenue of Microsoft and Other Results

However, the most interesting thing about the result is Microsoft’s advertising business did better than expected. Also, this was majorly from the LinkedIn social network whose Marketing Solutions division drives revenue from ads. During the December 2020 quarter, this division delivered revenue of $2.58 billion.

This is a massive 23% surge on an annualized basis. This was surprising as Microsoft expected growth to be the same as the previous quarter i.e. 15.6%. During the conference call with analysts, Microsoft CEO Satya Nadella said:

“LinkedIn’s advertising business had a record quarter accounting for more than a third of LinkedIn’s total revenue. LinkedIn’s Marketing Solutions was up over 50% as advertisers increasingly turned to the platform as the trusted way to reach professionals ready to do business”.

LinkedIn has managed to stay away from all the political controversies around platforms like Twitter Inc (NYSE: TWTR) and Facebook Inc (NASDAQ: FB). Apart from advertising, LinkedIn’s revenue also comes from premium subscriptions and tools used by recruiters and salespeople.

Expecting Better Business from Search-Advertising and LinkedIn

“Our search and LinkedIn businesses should benefit from the improving advertising market,” said Amy Hood. Microsoft’s search advertising business has also jumped 1% to $2.15 billion during the December quarter.

The recent surge in Microsoft’s advertising revenue reflects an overall surge in advertising activity. It means that as global businesses begin to pick up once again from the pandemic woes, we can see a similar outcome for other companies.

The MSFT stock at $232 on Tuesday with a market cap of $1.76 trillion. The stock price is already 3.64% up today in the pre-opening session. Besides, Microsoft’s strong advertising revenue has fueled hope among Alphabet Inc (NASDAQ: GOOGL) and Facebook Inc (NASDAQ: FB) investors. Both Alphabet and Facebook are relating their earnings report this week. Both these stocks ended up in green on Tuesday.

Other platforms like Snapchat and Twitter, which majorly depend on advertising also surged on Tuesday.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Decentralized Finance’s UNI Token Jumps 92% in One Week, Passes $15

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Decentralized finance (DeFi) exchange Uniswap’s native token uni (UNI) broke $15 per token on Coinbase Wednesday morning. It’s up more than 92% in one week and up 1,300% since the token debuted in September 2020, according to CoinGecko at press time.

Valued at $4.2 billion, Uniswap’s UNI has the highest market cap of any DeFi token on the market, according to research firm Messari.

The governance token has been caught up in bitcoin’s 2020-21 bull run along with other DeFi tokens. At $25.1 billion, DeFi Pulse’s Total Value Locked (TVL) metric – similar to assets under management (AUM) – is up nearly $10 billion from Jan. 1. TokenSets’ DeFi Pulse Index, which measures a suite of DeFi token prices, is also up 136% on the year.

A governance token, UNI holders can vote on the direction of Uniswap version 2 such as how the Uniswap treasury will be spent. The exchange’s weekly volume has also surpassed its impressive initial run during “DeFi summer.” During the first three weeks of January, volume averaged some $5.6 billion while available liquidity on the exchange consistently sat above $3 billion, according to info.uniswap. 

At the time, Uniswap conducted what’s called a token “airdrop” to anyone who had ever used the exchange before. The token drop was in response to rival exchange SushiSwap forking Uniswap’s codebase and trying to draw away users with a new token, SUSHI, in what is now called “vampire mining.” Each nominal user was given 400 UNI tokens amounting to 60% of the 1 billion UNI minted. Each airdrop is now worth about $6,000; it was jokingly referred to at the time as crypto’s own stimulus check. SUSHI is also up 177% over the last 30 days, according to Messari.

Uniswap investors, advisers and team members are also up big after an initial allocation of the tokens, although a four-year vesting schedule remains in place. According to a Uniswap blog post, 21% or 212,660,000 UNI (at press time: $3.2 billion), were allocated for current and future team members. An additional 18% or 180,440,000 UNI ($2.7 billion) were set aside for investors plus 0.69% or 6,900,000 UNI ($103.5 million) for advisers.

Uniswap, whose core team is based in Brooklyn, N.Y., raised $11 million in a Series A backed by Andreeson Horowitz, Paradigm, Union Square Ventures and VersionOne. 

Uniswap founder Hayden Adams declined to comment.

Disclosure: This reporter holds a small UNI allocation from the initial airdrop.



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