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Zombieload attacks Intel processors but leaves AMD alone.
Getty
AMD increased by 69% last year. Can he do it again? Tony Mitchell, who outperformed all US equity mutual funds over the past 10 and 15 years, first asked us to buy AMD in January 2018 and made it his first choice for 2019. The story may be repeating itself since Intel processors recently proved to be vulnerable to a new attack called Zombieload, which does not seem to affect AMD processors.
Why did AMD grow by 69% last year?
In January 2018, when Intel announced that its processors were vulnerable to Spectrum and Meltdown attacks, they released hotfixes to fix the problem. However, early reports revealed that fixes reduced Intel's CPU performance from 5% to 25%. Intel said that performance degradation was workload dependent and because most users did not fully utilize their processor, they would not notice it.
While this is true for most users, there are customers who fully utilize their processors – enterprise data centers. For these customers, installing a fix that reduces processor performance by 25 percent is equivalent to a 25 percent increase in price, as they now have to buy 5 processors to do the same job as 4 before.
This did not immediately benefit AMD because Intel said Specter and Meltdown were industry-wide issues, which meant that AMD processors were also affected. This only turned out to be partially true.
AMD processors are significantly less vulnerable to Spectrum and Meltdown because they do not use the functionality exploited by these attacks. Although they are not immune to these attacks, AMD software patches do not have the same performance drawbacks as those of Intel. The advantage acquired by AMD in the data center market largely explains the rise of 69% of the stock in 2018.
This is still happening
The researchers who discovered Specter and Meltdown discovered a new vulnerability called Zombieload, which affects all Intel processors since 2011. It's important to note that AMD processors do not seem to be affected.
Apple has just announced that allowing software patches to fully mitigate Zombieload, which they call microarchitectural data sampling (MDS), has resulted in a performance reduction of up to 40 percent. % during tests. I want to see what kind of performance degradation occurs under Red Hat, Centos, Ubuntu and other versions of Linux, but the outlook is good for AMD.
My catch: Although Intel certainly has a way to circulate this more favorable news, I would rather rely on Tony Mitchell 's opinion of the investment implications.
Tony bought AMD for the first time in October 2014 at $ 3.45. He recommended AMD in January 2018 and made it its first choice for 2019 when it was $ 19. At the current price of $ 27, he has already made a lot of money on his initial investment and sees much more potential in 2019.
Tony's Internet Fund has more than 18 years of experience ending in two market crashes, numerous corrections and sector rotations. During this period, Tony recorded an annual average of 17.50%, which compares well with the 5.83% yield of the S 500 for the same period. It is up 31% since the beginning of the year, against 18% for the S & P 500.
To be notified when Tony updates his point of view, click here. To be notified when I write about specific actions like AMD and Intel, that cover my managers, click here.
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Zombieload attacks Intel processors but leaves AMD alone.
Getty
AMD increased by 69% last year. Can he do it again? Tony Mitchell, who outperformed all US equity mutual funds over the past 10 and 15 years, first asked us to buy AMD in January 2018 and made it his first choice for 2019. The story may be repeating itself since Intel processors recently proved to be vulnerable to a new attack called Zombieload, which does not seem to affect AMD processors.
Why did AMD grow by 69% last year?
In January 2018, when Intel announced that its processors were vulnerable to Spectrum and Meltdown attacks, they released hotfixes to fix the problem. However, early reports revealed that fixes reduced Intel's CPU performance from 5% to 25%. Intel said that performance degradation was workload dependent and because most users did not fully utilize their processor, they would not notice it.
While this is true for most users, there are customers who fully utilize their processors – enterprise data centers. For these customers, installing a fix that reduces processor performance by 25 percent is equivalent to a 25 percent increase in price, as they now have to buy 5 processors to do the same job as 4 before.
This did not immediately benefit AMD because Intel said Specter and Meltdown were industry-wide issues, which meant that AMD processors were also affected. This only turned out to be partially true.
AMD processors are significantly less vulnerable to Spectrum and Meltdown because they do not use the functionality exploited by these attacks. Although they are not immune to these attacks, AMD software patches do not have the same performance drawbacks as those of Intel. The advantage acquired by AMD in the data center market largely explains the rise of 69% of the stock in 2018.
This is still happening
The researchers who discovered Specter and Meltdown discovered a new vulnerability called Zombieload, which affects all Intel processors since 2011. It's important to note that AMD processors do not seem to be affected.
Apple has just announced that allowing software patches to fully mitigate Zombieload, which they call microarchitectural data sampling (MDS), has resulted in a performance reduction of up to 40 percent. % during tests. I want to see what kind of performance degradation occurs under Red Hat, Centos, Ubuntu and other versions of Linux, but the outlook is good for AMD.
My catch: Although Intel certainly has a way to circulate this more favorable news, I would rather rely on Tony Mitchell 's opinion of the investment implications.
Tony bought AMD for the first time in October 2014 at $ 3.45. He recommended AMD in January 2018 and made it his first choice for 2019, at $ 19. At the current price of $ 27, he has already made a lot of money on his initial investment and sees much more potential in 2019.
Tony's Internet Fund has more than 18 years of experience ending in two market crashes, numerous corrections and sector rotations. During this period, Tony recorded an annual average of 17.50%, which compares well with the 5.83% return of the S & P 500 for the same period. It is up 31% since the beginning of the year, against 18% for the S & P 500.
To be informed when Tony updates his point of view, click here. To be notified when I write about specific actions like AMD and Intel that cover my managers, click here.