Alex Cho

About the Author Alex Cho

Best tech/finance blogger on TipRanks. Alex Cho is ranked 7th among all financial bloggers, with a sector focus of technology stocks. The research he publishes captures the long-term growth potential of tech franchises, and market valuation. His research recommendations over the span of five-years has averaged into an annualized return of 19.3% across 392 ratings of which 66% were successful. Over his years of publishing, Alex Cho has been an indispensable source of information for an investment minded audience, which is why his lifetime viewership has exceeded ten million in total since 2012, across various media platforms. Furthermore, he’s frequently cited in various local business journals across the United States, and is frequently tagged with the “in-depth” designation on Google News for his public articles. The quality of his research is well known, and is well-respected which is why he’s frequently cited by other authors, journalists, bloggers and experts. Alex Cho was a former founding partner of Alexander & Cohen Capital Management, has worked as a consultant for mid-stage tech companies looking to raise capital or form an exit strategy, with the most recent consultation billed to a client that was generating revenue of $10 million+ in the web domain/registrar segment. Alex Cho is frequently invited to interview members of management at various Fortune 500 tech companies’ due to his outstanding media credentials, and credibility. Furthermore, he frequently attends various tech media events at the request of the event organizers. Alex Cho has a great relationship with Wall Street and Silicon Valley, as well. In the Venture Capital Space, he has sources that are inclusive of VC Partners, and independent research from PitchBook, Mercury Data, eMarketer, MergermarketGroup, and so forth. Anyone facing the public with investment related material needs quality sources, which should be inclusive of insights from Private Equity and various sell-side institutions and debt rating agencies as well (Standard & Poor’s, Fitch, & Moody’s). Alex Cho publishes with the support of Bank of America Merrill Lynch, Morgan Stanley Americas, Royal Bank of Canada Capital Markets, United Bank of Switzerland AG, Barclays Americas, Goldman Sachs, J.P. Morgan, Credit Suisse AG, PiperJaffray, Wedbush Securities, Oppenheimer & Co., Nomura Securities, BMO Capital Markets, Raymond James, Pacific Crest, SunTrust, Mizuho Securities, Deutsche Bank and Canaccord Genuity. Alex Cho attended ASU via the MAPP program with a 3.76 GPA in business-finance. The genius behind Cho has less to do with his academic accomplishments, but rather his ability to navigate, adapt, and improve the quality of his work through all the activities he has engaged. In the past year, Alex Cho has launched a new marketplace service referred to as Cho’s Investment Research. To learn more about this service, or to receive article notifications, be sure sure to subscribe. We provide frequent updates via our Blog Posts, which goes out to our subscribers.

AMD’s Gain Is Nvidia’s Pain; Upcoming Navi GPU Could Be a Game-Changer for AMD Stock


Advanced Micro Devices (AMD) stock has been rallying since the beginning of the year, though much of the expectations embedded into the stock has a lot to do with the chip giant’s 7nm transition, which it has successfully transitioned to with the release of the Radeon 7.

Expectations continue to trend higher when pertaining to AMD launch of its 7nm Navi graphics card line-up this year. This is an important transition point for AMD, as it will attempt to take market share away Nvidia (NVDA) and refresh its product line-up from its Vega/Polaris Architecture to its next-gen Navi based cards. Keep in mind the Radeon 7, which is a high-end GPU that released earlier in February this year is a shrunken down version of its current generation Vega graphics cards with more features and enhancements in the way of core counts, clock speeds, memory and memory bandwidth.

However, it’s also worth noting that despite the release of the Radeon 7 it hasn’t been able to deliver on performance benchmarks that would best the Nvidia RTX 2080 TI or the GTX 1080 TI in the high-end segment of the market. Though, the performance is very comparable to the GTX 1080 TI, it would take a significant overhaul in the architecture to drive further excitement in the way of performance, which would then drive revenue in AMD’s graphics segment.

This on-going narrative of difficulty with matching pound for pound against its competitive rival has been somewhat of a sore spot for AMD over the duration of its entire history. Even so, it’s not like AMD has given up, as there’s still a lot of interest heading into the Navi launch later this year.

AMD may have an edge in terms of manufacturing technologies versus Nvidia as it’s using a 7nm process versus Nvidia’s 12nm process. Even so, it hasn’t amounted to a significant enough of a performance leap to finally beat its rival in graphics performance, which was somewhat of a shocker when the benchmark results were announced in February.

To bridge the performance, there’s on-going rumors of AMD over the past week that Navi 20 will have ray-tracing capabilities, which is an important feature that would make it more comparable to Nvidia’s RTX 2080 TI. The key is whether or not, the Navi line-up will come in time this year, but many indications point to AMD releasing Navi 10 first, which will be the mid-end graphics cards, and then the higher-end Navi 20 will be released next year.

Source: JPR

This implies that while AMD known for being competitive, it’s emphasis this year will be on mid-end graphics cards, which may help with market share. In Q4’18 JPR said that AMD lost 14.9 percentage points of market share. This is a massive drop in market share for the company, though some of it was owed to the drop-off in the cryptocurrency craze, which sent the shipments of all graphics cards considerably lower with a 40% drop in total units shipped in Q4’18. Part of this, may be driven by pricing, as Nvidia and AMD got more accustomed to charging higher prices, because consumers would actually pay more for GPUs due to the prospects of making profits from mining various cryptocurrencies.

However, the drop in GPU shipments took a massive graphics industry toll, and more notably a bigger chunk out of AMD’s sales given the significant drop in market share witnessed over the course of 12-months. Hence, the introduction of Navi 10 GPUs with an emphasis on mid-end PC gaming would return us back to industry roots where consumers can finally afford a decent GPU to play video games at price points rumored to range from $200 to $400 and with a meaningful performance boost that will make it comparable to Vega 56 and Vega 64 cards leading to some heightened competition with Nvidia in the mid-end of the segment where they could lead with prior-generation high-end performance at the mid-end of the market.

This could easily drive market share back to 30% versus Nvidia, as AMD’s offerings in the mid-end tends to appeal more to consumers who want to game on a budget, and when it’s packaged in a format that would make higher-end gaming more readily accessible, it’ll definitely take a chunk out of shipments from Nvidia, which is much needed currently.

Disclosure: The author has no positions in AMD or NVDA.

 

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