Amid mixed reviews regarding the Q3 earnings report for Advanced Micro Devices, there lies a positive note for this chipmaker. Though the stocks took a quick tumble in morning trading after the report release, they quickly regained momentum and quickly climbed in the late afternoon showing that investors have not yet given up on the ability of this company to make progress in Q4. This may be for good reason. Their woes began when they delayed the release of a new product for two quarters while they revamped the architecture for the Phenom processor. Plagued by difficulties with the ATI acquisition and among rumors of financial problems, ATI began a long slow slip from glory while CPU Goliath and number one competitor Intel capitalized on the market. It would appear though that David has gotten tired of sleeping, he has his sling in hand and is looking for a good sized rock. Recently AMD's ATI division shocked the computing world with it's release of the Radeon HD 5800 series which put up enough eye popping numbers to take the GPU crown from long time GPU champion NVidia. Secondly the AMD roadmap has scheduled a full line up of fresh new products for an energy conscious world for Q4 of 2009-and through 2011. They are planning to unleash a hailstorm of new processors from the 6 core and 12 core Bulldozer/Orichi processors to the first single chip GPU/CPU (graphics processing and computer processing) on a 32nm die process. So while the Q3 earnings report might be a momentary setback for the company, AMD is locked, loaded and ready to rock toward the fourth quarter and onward. I think the stumbling is almost over for this little giant and those who get in now can benefit from their labors. So if you are looking for a solid long term technology buy, AMD is a good choice.
Happy Stocking
$6.19 (10/16/09)
