Advanced Micro Devices, Inc. (AMD)

I think AMD will get a good pre-earnings run-up. I don't think the earnings news will be bad--in fact I think they will exceed expectations, but as is almost usual, I expect the stock to go down after the January earnings call.

AMD had be valued as a perpetual option only a few months ago. The corporate shake-up, the spin-off of the fab plants and the clearly transparent release of their upcoming lineup are all positive signs. Remove the litigation risk, the lowering of credit costs from improved bond ratings and you have all the pieces necessary for a robust increase in share price. Yes, they can botch the releases as we've all seen in the past but barring that event, there is simply no way AMD doesn't pick up market share from INTC, especially in the EU. A few percentage points of market share is a game-changer for AMD. Therefore, if you add the marginal value of the business on an operational basis to where the stock was trading as a perpetual option, I believe the fair value is in the $8.50-$9 range, before any new news.

With the legal mess behind them and a settlement in their favor, can pay down some debt and get back to getting more market share vs. intel. They are the underdogs, and I like underdogs.

I love puzzles. That being said I find AMD vs. Intel the NY Times crossword puzzle of puzzles. I believe most folk are not completely sure of all that has just recently happened, but are inherently agreed that it was good for AMD- just look at the volatility of the stock since the news, and the hesitant comments and articles (present included). In dissecting past and current events between the two companies I am certain of three things:

1)The concessions between Intel and AMD will keep Intel from changing X86 specifications at the last moment (Intel’s usual tactic), insuring AMD can finally get on the merry-go-round.

2) AMD understands and are proficient with both the CPU and GPU architecture.

3)AMD has good ideas, and are eager to get them going.

On a side note I really believe AMD will share their initial concepts with Intel, one, because AMD will still have the ‘better’ understanding of both CPU-GPU fusion, while using Intel to cement x86 standards. This will benefit both AMD & Intel, and perhaps put much distance between CISC and RISC CPU designs. Currently it appears all things are falling AMD’s way, it’s funny how these things happen.

please read for better understanding

A look at AMD's AVX and XOP http://www.theinquirer.net/inquirer/news/1137282/a-look-amd-avx-xop

Striking a Balance http://forums.amd.com/devblog/blogpost.cfm?catid=208&threadid=112934

asH

I like the product and will wait because they might breakout -

After some stumbles, it appears AMD is back in the race. Shouldn't overlook the ATI aspects, (in the Wii after all).

I got lucky going long on this before Intel handed over a billion dollars. Should help with the debt, and continue upward motion.

New technology and timing are going to propel the company forward

Mad Money - Cramer Pick

Improving manufacturing processes and latest ATI graphics card is a clear winner over Nvidia. Expect at least a few good years for AMD.

If they can take a bite out of Intel and live to talk smack about it, they can outperform the S&P 500.

With the closing of the major lawsuit battles with Intel I think that it is likely that AMD will outperform the S&P 500 average. What may help in this matter is the fact that Intel has to pay a 1.25 B USD settlement to AMD. Also as a reslut of this settlement AMD will be allowed sell off their foundry, a two fold benefit; first it removes a large annual loss from AMD and second it allows them to spend more on R&D.

With the $1.25B settlement, AMD will be able to payoff a good chunk of it's debt (originally about $3.7B) hence improve their Balance Sheet.

With their agreement for a new 5 year cross licensing deal with INTEL, Globalfoundries now no longer needs an extra license to manufacture any processor using the x86 Architecture.

With the fair business agreement they both accepted (though terms not known) there's a possibility that AMD will gain momentum and gain market share (hopefully). Which is not considering their ATI side which cleaned up nice this winter since NVIDIA won't be introducing FERMI until Q1 2010.

Lastly, as mentioned earlier ATI is known as the current "best in class" for GPU production (until Fermi shows up). If AMD can speed up the release of their APU LLANO then I have a feeling that they'll be able to clean up nice compared to Intel's Arrandale.

It's still a bit speculative, but I believe that with the economic upturn, settlement payment, and new executives, they can make it happen.

AMD was always making better procesors!

If AMD gets out of penny (above 5 bucks) land then 50 bucks is in a time frame of 5 years possible !

AMD is a great ship producer perhaps a much small competitor if we compare with Intel (INTC)

There is enough room to reach higher levels.
near-term - next 6 month 12 to 18 bucks
plz dont forget it is my personal view.

gltua

New AMD management is taking a more conservitave approach with its investers . Holiday laptop and computer sales could be better then expected in 09 . AMD is being conservitave in its forward looking predictions for the remaining year. I would expect they will beat earning estimates again the next 2 quarters based on holiday sales.

I really like AMD, it made me some money and I believe it will continue to make me money

AMD is a pickle for most people. Why AMD why not Intel? I hear this allot. My response Best bang for your buck and the best chance to really hit it big when (in my opinion) the great tech rally of my life time hits! I’m looking long term here about 10-12 years and I know Intel will do ok and have a bigger share of the market…BUT at 5-7$ a share you will see massive returns percent wise vs. Intel

Priced to low already, Pc sales steadliy returning to normal