AMD expands into embedded markets with Xilinx acquisition, faces tough FPGA competition

From Nasdaq: 2025-06-23 11:28:00

In the first quarter of 2025, Advanced Micro Devices (AMD) acquired Xilinx, expanding its presence in embedded markets with products like CPUs, GPUs, FPGAs, and adaptive SoCs. Despite a revenue decline, the latest VP1902 adaptive SoC offers impressive logic cell density, enhancing capabilities. AMD also partners with cloud providers like AWS for FPGA-accelerated instances optimized for data-intensive workloads.

AMD faces tough competition in the FPGA market from companies like Lattice Semiconductor and Intel. Lattice Semiconductor has seen success in high-growth industries with its Nexus and Avant product families. Meanwhile, Intel recently sold a majority stake in Altera to Silver Lake, positioning Altera as a leading FPGA semiconductor solutions provider.

AMD’s stock has outperformed the sector but lags behind the industry. With a premium valuation and a decline in earnings estimates for the second quarter of 2025, AMD’s Value Score stands at D. However, the consensus estimate for full-year 2025 earnings shows potential growth, with AMD carrying a Zacks Rank #3 (Hold).

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For more information and stock analysis reports, visit Zacks Investment Research. The views expressed in this article are the author’s and do not necessarily reflect those of Nasdaq, Inc.



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