In the chip processing space, Advanced Micro Devices is no stranger to being a company with a low market capitalization. Valued at $1.71 billion, the company is winning supply contracts with companies like Hewlett Packard (HPQ). AMD will be powering HP Moonshot servers. The servers will use AMD’s Kyoto CPU.
AMD could also be the SoC (system-on-a-chip) supplier for Microsoft’s next Xbox.
OCZ, AMD, and other Storage Suppliers by Market Capitalization:
RisksProduct marginalization for processors remains a risk for AMD. The company announced turnaround plans repeatedly over the years. Still, for 2013 and beyond, APUs are promising and supplying to the broader market beyond desktop computers should be taken into consideration. Conclusion Weak PC shipment figures from IDC that indicated a decline of 13.9% in Q1 scared investors away from AMD. Investors are forgetting that even though Windows 8 sales were underwhelming, support for XP will end next year. Corporations upgrading desktops may choose lower-cost AMD-powered machines. AMD is financially healthy to operate under deteriorating conditions. Investors with the stomach to weather the volatility could be rewarded as early as next year.
Written by Chris Lau, KAPITALL Contributor
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV