Advanced Micro Devices (Nasdaq: AMD) is one of the semi-conductor companies which saw a strong surge run in 2020, gaining close to 100% return in that year alone.

In fact, if we take a look at the semi-conductor company closer, we can see that the secular growth has started its run from as early as in 2018, where the company gains 79.6% and then a further 148.1% in 2019. The unprecedented Covid-19 situation we have right now accelerates the demand we have towards particular sectors such as gaming and Internet of Things (IOT) – which begs for faster and more efficient chips processor to accommodate for these things.

Source: 3F compilation from Yahoo Finance
Business Model

Let’s first take a look at what is the business model that makes this a strong company.

The company earns revenue mainly from selling high-performance CPUs and GPUs used in gaming processors, content