Look for AMD share price to explode upward while INTC remains flat
AMD has landed the new Wii U, the upcoming Sony Playstation 4 (to be announce on February 20th) and the new Xbox 720 that should be announced soon.
How big is gaming to AMD?
In 2013 over 37 million game consoles are expected to be sold and over 44 million in 2014. (Since those figures were announced, China has decided to lift the ban on game consoles). China sales now have to be added to these estimates.
To put it all in perspective, AMD was in only 15% market share for computers or about 30 million computers. I am not the best at math, but even I can see that AMD will be in more gaming consoles than in computer.
This is exactly what will lead AMD into being cash flow positive by Q3.
Once Sony makes it official on 2/20, AMD will have a nice bounce and you will see 100 million shares that are currently short to scramble to cover sending the rally up even furthest.
AMD is up over 40% since hitting the bottom in mid November. Once Sony confirms AMD and makes it official, it will have a very nice ride up.
P.S. the PS4 & the Xbox 720 are use not just the GPU or APU, but also the CPU. More slices do the pie for AMD.