Entering text into the input field will update the search result below

AMD Is On Fire

Aug. 07, 2018 12:48 PM ETAdvanced Micro Devices, Inc. (AMD)INTC86 Comments
Zynath Investment profile picture
Zynath Investment


  • AMD recently reported a stellar quarter but there is even better news.
  • On August 2, 2018, AMD announced a partnership with Zhongshan Subor to design and build a new chip for both a gaming console and PC to be sold in China.
  • For Subor AMD created a chip with 4 Zen cores running at 3.0 GHz and 24 compute units of Vega running at 1.3 GHz with GDDR5 memory controller.
  • This is a sign of much larger things to come, x86 SOCs are the future.

We have been bullish on AMD (NASDAQ:AMD) for just over a year now and it looks like finally our predictions are aligning with AMD's corporate strategy. In our February 2, 2018, article about AMD's Hidden Strategy we wrote about how selling Vega cores to Intel was a brilliant idea that will pay off in the long term. We encourage you to take a look at that article for background information. Now AMD is finally doing something that we argued they should have been doing all along, they are making high end GPU/CPU system on chip (SOC) processors for the desktop market. Such processors should prove extremely popular for the mid-range desktop gaming market, but where they will truly shine is in artificial intelligence (AI) applications.

Zhongshan Subor SOC

https://www.anandtech.com/show/13153/amd-creates-quad-core-zen-soc-with-24-vega-cus-for-chinese-consoles(Image courtesy of Anandtech.com)

On August 2, 2018, AMD announced that it has created a new SOC for Zhongshan Subor, a Chinese company that manufactures gaming consoles and equipment. The SOC will include 4 Zen cores running at 3.0GHZ each combined with 24 Vega compute units and an onboard GDDR5 memory controller. The SOC will be used by Subor for their upcoming game console AND it will also be used in a desktop PC geared towards gamers that Subor will also be selling later this month. In fact, the PC is going to come out first with the game console to follow closer towards the end of the year.

Now it is a well known fact that AMD has been a supplier to both Microsoft and Sony and that their SOCs power XBox and Playstation game consoles. So what is so special about this new SOC? Isn't it basically the same thing that AMD has been selling to Microsoft and Sony for years? Yes and no.

(Image courtesy of Anandtech.com)

(Image courtesy

This article was written by

Zynath Investment profile picture
California Licensed Attorney, Business and Information Technology consultant, and biotechnology entrepreneur. Individual investor investing in small, mid, and large cap IT and Biotech companies. Main concentration is event driven investment in option derivatives of high tech and biotech stocks. Concentration on medium time horizon of 6 to 36 months.

Analyst’s Disclosure: I am/we are long AMD, INTC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.