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It's simple and look at AMD and it's stock increases over the last 5 years and some big institutional investors jumping on board and purchasing AMD's stock. And
by Farfignoggen 6y ago
It's simple and look at AMD and it's stock increases over the last 5 years and some big institutional investors jumping on board and purchasing AMD's stock. And maybe the largest of the Institutional investors getting a seat on AMD's Board of Directors or some pull in getting some influence there in choosing one of AMD's BOD Members!
So once AMD's Zen products were on the market and AMD's renewal of competition in the x86 server and consumer market
was assured and AMD's CPU/GPU product lines were taking back more market share and that was then leading to more Big Institutional Investor attention! And Big Institutional investors are going to be Gross Margin focused and Lisa Su answers to AMD's Board of Directors who answer to AMD's investors.
So increasing AMD's ASP and Quarterly Gross Margin numbers is what Lisa Su is tasked to do and look at every company's Quarterly Conference Call and Gross Margins are always mentioned.
Once a company attracts the Big Retirement funds as Investors well those tend to be in for the long term as they are restricted in how they can invest, if they are a State's Retirement fund especially. And AMD's stocks where so attractive from an equity investment strategy early on when they were in the $1.97 range and beginning their rise and more than doubling every year for a while and any of the large Institutional Investors that got in at the beginnings of that are now fat with equity in AMD's shares/share value and that share price rise has leveled off for a while now at $90-$100 range . So those Institutional Investors are wanting more through increases in gross margins and higher ASPs.
AMD's Institutional Investors have so much pull now relative to their investments in AMD's stock and those fund managers Know the Retailers are making out more from the demand market pricing and that AMD who only gets its wholesale pricing and no more unless AMD's increases it's wholesale ASPs. And AMD's R&D investments are really needing to be increased as well to remain competitive with Intel and Nvidia. So Higher ASPs are required for that!