Comeau: AMD Woes Mean Nvidia's a Buy

After Monday's close, AMD (AMD Quote) lowered its first-quarter revenue outlook to $1.5 billion due to weaker-than-expected sales across its business segments, and it also announced a plan to cut 10% of its work force by the third quarter of this year.

However, this latest twist in a long line of disappointments from AMD shouldn't be interpreted as the end of days for tech. Rather, it is creating a buying opportunity in a competitor.

First things first. AMD has not been considered a paradigm of competent execution since its glory days in late 2005/early 2006, when the company was riding high on the back of its Opteron server chips, which were simply blowing everything Intel (INTC Quote) had out of the water. But times have clearly changed, and AMD has had consistent trouble getting high-quality products out the door on time in sufficient numbers to its customers. ...