Per Forbes, no. It should correct back down to the mid 2s when the reality of continued market share, revenue and margin erosion is disclosed in the Q2 report. AMD is overbought at this level and will likely correct to a level below your last entry point.
Advanced Micro Devices gets a bump higher in the post session following positive comments from Alpha One's Dan Niles on CNBC's Fast Money.
Niles said that Sony's PlayStation 4 and Microsoft's Xbox One would be a strong driver for the chipmaker, and the shares could double over the next few years.
Sentiment: Strong Buy
AMD tries to counter the 2012 launch of Intel's (INTC) S1200 (Centerton) Atom low-power server CPU line by launching its Opteron X-Series (codenamed Kyoto) CPUs. Like the S1200 line, the X-Series is aimed at the small but fast-growing microserver market - AMD's first two chips respectively consume 9W and 11W. AMD boasts its CPUs sport 4 cores to Intel's 2, and are also differentiated by superior throughput and their inclusion of GPU cores. However, Intel's upcoming Avoton CPUs will deliver big performance gains over Centerton. There's also plenty of competition from ARM (ARMH) server CPUs - AMD is hatching plans for its own ARM chips. The company's SeaMicro microserver unit supports a variety of CPU platforms.
chasing low margin consumer market is never really smart.. The stock is a strong symbol of hope over reality.. The need for work machines is being pushed by social/cloud. You notice the fall off in Face book users and the Linkin yes man narcissistic blow back very much reminds me of the economist running technologies instead of engineers. I don't know if AMD or for that matter Intel is not going the Cisco route instead of the Huawei path.
At the end of the day, Intel and AMD are going to have a hard time losing entering into the rapidly growing mobile segment. Neither of these companies have seen significant revenue in the tablet or smartphone sectors, and both of these sectors have managed to grow YoY amidst declining PC sales. AMD's new low powered Jaguar devices have received fairly good reviews so far. Do not expect to play AAA titles such as Bioshock Infinite on them, but they are more than adequate to play less demanding titles, watch movies, or to run MS Office. We should see Jaguar powered devices by autumn, and Bay Trail powered devices by Q4.
Advanced Micro Devices stock on a recent rally, largely due to a design win in Sony's (SNE) PS4, and an unofficial win in Microsoft's (MSFT) next generation Xbox.
AMD's 3 Step Road To Recovery:
Step One: Restructure to reduce operating cost and improve efficiency. Two, execute our 2013 product road map to accelerate our business and return for profitability. And three, ultimately transform AMD to take advantage of high growth opportunities...