Advanced Micro Devices (NASDAQ: AMD) stock has stumbled out of the gate in 2021. The company has been dominating Intel in the CPU market and is sitting on favorable trends in the GPU (graphics processing unit) space where demand is substantially outpacing supply. The arrival of a new generation of gaming consoles from Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE) is also turning out to be a major tailwind for the company -- one that could help the chipmaker exceed its own expectations as it supplies chips for both devices.
Semiconductor shortages are hindering the production of everything from personal computers and consumer electronics to automobiles.
Advanced Micro Devices (NASDAQ: AMD) was in shambles six years ago. Its processors were massive failures when compared to what Intel (NASDAQ: INTC) was offering, leaving AMD with almost no market share in the server space and a failed personal computer chip business. Its Bulldozer-based FX-8150 processor, for example, was reportedly 40% to 50% slower than Intel's comparable offering at that time.