3 August 2022
If you are covering recent semi-conductor and tech company results, including AMD, Infineon and EA, please find below a comment from Ben Barringer, tech research analyst at Quilter Cheviot:
“Results from semi-conductor companies continue to be strong in the face of supply constraints that have persisted since the onset of the pandemic. While those issues have mostly eased, they do still exist, but this isn’t stopping the demand.
“AMD reported very strong results in comparison to main competitor Intel. It took 6% of market share from Intel as it continues to go from strength to strength. This has been driven by both data centres and PCs, so the growth is broad and we can expect it to continue to do well over the rest of the year and into next.
“Infineon meanwhile saw very strong growth from the automotive sector as car technology continues to improve and demand for electric vehicles shows no sign of abating as the world looks to go green. While it has had a strong year to date, the order book is only growing. The backlog is getting bigger rather than smaller and as such the guidance has been raised.
“Semi-conductor businesses have had a buoyant few years as demand for their products have soared. This is showing no sign of slowing down and the technological revolution means the structural tailwinds will remain in place for some time.
“Looking across the tech industry others are facing a more uncertain future. Electronic Arts produced stable results last night, but it is preparing for the loss of the FIFA name to its football video game. While the brand may be changing, EA has enough technical know-how and quality to continue producing exceptions football games, however should another developer choose to partner with FIFA, the may see some market share get stolen over time.”
