Seeking Alpha

AMD jumps following CEO's CNBC talk

  • CEO Rory Read appeared on CNBC's Fast Money (video) yesterday evening to talk up AMD's (AMD +6.3%) efforts to lower exposure to a PC market featuring soft industry demand, short product cycles, and intense competition from Intel/Nvidia.
  • Read, in reference to his company's PS4/Xbox One design wins: "What we're trying to do is create these long-term strategic relations .... Those are the plays that are going to create the long-term transformation of AMD." In addition to consoles, AMD is looking to create partnerships in the server and embedded computing markets.
  • He asserts only 4% of AMD's revenue came from non-PC applications when he joined the company, and that over 30% do so now. Long-term, AMD wants to derive half its revenue from non-PC markets.
  • At the same time, Read argued AMD, whose PC CPU ops have historically been heavily exposed to the low-end consumer notebook market (hit hard by tablets), has "greenfield" opportunities in the desktop and commercial markets. The company recently launched low-end desktop CPUs based on its 28nm Kabini architecture (previous), with the goal of enabling high-volume sub-$300 systems for emerging markets.
  • With over 1/6 of the float shorted as of Feb. 14, Friday short-covering is likely contributing to today's gains.
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Comments (42)
  • Philip Marlowe
    , contributor
    Comments (1289) | Send Message
     
    "In addition to consoles, AMD is looking to create ....."

     

    What is AMD looking to create?
    7 Mar 2014, 01:50 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2676) | Send Message
     
    Microservers, for one.

     

    They have a new line of embedded chips, so we might finally see some non-crashy SmartTVs and stuff. They have the best graphics tech for anything high resolution.

     

    They're making an effort to bring core sizes down too, reducing their costs.
    7 Mar 2014, 01:59 PM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3151) | Send Message
     
    @Philip - if you click the "video" link - you can hear the entire talk and plan that the CEO laid out. There's also a (similar) interview on Bloomberg.
    7 Mar 2014, 02:03 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1535) | Send Message
     
    A legacy in the console and app software library optimized to their hardware. Then they could sell more hardware. Sounds familiar to other successful businesses today?

     

    They key is here long term and sustainable. That was something AMD never had until now. They have historically been piggybacking Intel and tried to beat them at their own game. Even when they made superior products, they can't beat Intel at their own game. This have all changed this past year.

     

    Anybody knowledge in hardware and software development should know this. Not even that high, anybody with common sense should know this.
    7 Mar 2014, 02:17 PM Reply Like
  • Market DJ
    , contributor
    Comments (698) | Send Message
     
    Rory Read and AMD are looking to create shareholder value. So far I think it's working.
    7 Mar 2014, 02:19 PM Reply Like
  • inside man 55
    , contributor
    Comments (1009) | Send Message
     
    That Bloomberg interview is more in depth.

     

    http://bit.ly/1k0LGk4

     

    I bet a lot of people didn't know AMD powers XB1 and PS4.
    7 Mar 2014, 03:21 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11605) | Send Message
     
    How can AMD investors not know? I'd find that truly perplexing.
    7 Mar 2014, 03:27 PM Reply Like
  • Market DJ
    , contributor
    Comments (698) | Send Message
     
    I agree. Rory Read sounded much more comfortable and confident in the Bloomberg interview.
    He looked a little out of place on the CNBC set, but who wouldn't?
    7 Mar 2014, 03:47 PM Reply Like
  • inside man 55
    , contributor
    Comments (1009) | Send Message
     
    AMD investors are a small subset of the general population, including analysts, market makers, and institutional power players. All you hear on the news is how AMD PC sales are suffering, never a word on what they are changing into.
    7 Mar 2014, 08:07 PM Reply Like
  • 10208741
    , contributor
    Comments (134) | Send Message
     
    Really! Seems lot more defensive esp with Tom who seem to be skeptic.

     

    XB1 and PS4 console wins were obtained during the Ruiz/Dirk period. Let me once again link to the interview with Mark Cierny, chief architect of the PS4.
    http://ubm.io/1dUjOZt

     

    ...
    "For me, this all started in late 2007," said Cerny, remembering how he embarked on the road to becoming lead architect of the PlayStation 4.
    ...

     

    So how RR can take credit for that I cannot fathom. Yes, he executed better, but even Dirk Mueller executed well till the BD fiasco.

     

    I agree that RR made the right call to expand into semi custom business greatly, micro server business with Sea Micro as well as become an ARM licensee.

     

    Let us see, AMD would be at 28nm even in 2015. Intel will be blitzing with 14nm products then while its ARM competition like SMSG, QCOM (I am excluding Apple) will be manufacturing at 20nm and maybe 16nm FinFET. AMD is still using only standard ARM cores and not a custom ARM core. So how does RR think that they will win over competition.

     

    7 Mar 2014, 11:01 PM Reply Like
  • Market DJ
    , contributor
    Comments (698) | Send Message
     
    You obviously didn't listen to or didn't get the interview. "Win over competition?" Is that competition with Intel? The same "competition" that Rory Read stated $AMD was not competing with?

     

    The word you are looking for is "diversification"…. AMD is not concerned with Moore's Law.

     

    AMD is no longer concerned with the race to the nano-bottom. They have different devices for that….
    8 Mar 2014, 09:10 AM Reply Like
  • 10208741
    , contributor
    Comments (134) | Send Message
     
    I think you did not read my comment at all. Intel was not the only thing I mentioned there ;D

     

    Just hiding your head in the sand does not mean that world has gone dark :D
    Just because AMD is not worried about Moore's law does not mean that its competition too is.

     

    AMD has to face an "ARM"y of manufacturers who will have the advantage of ARM cores as well as fabbing advantage as well as custom designs.

     

    Please look at my posts in this forum as to how I find the semi custom business and consoles is very appropriate for AMD and it entered at the right time.

     

    http://bit.ly/1oBz9Uq
    http://bit.ly/1oBz9Ut

     

    I will expand my thoughts further in another post.
    8 Mar 2014, 10:14 PM Reply Like
  • kjurden
    , contributor
    Comments (725) | Send Message
     
    Sure would like to see an announcement from AMD/Facebook regarding new server orders!
    7 Mar 2014, 02:57 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11605) | Send Message
     
    The Verizon deal may have been a flash in the pan?

     

    Don't forget to take profits in time before earnings, or in case you broke even today. I still sit on 36K of AMD and the $/€ is taking care of today doing not much for the stock from the European perspective. Three times fooled is stock masochism enough.
    7 Mar 2014, 03:13 PM Reply Like
  • toonies
    , contributor
    Comments (440) | Send Message
     
    Facebook deal will not be flash in the pan, if...then it will be very loud explosion. Like AMD. Nice w/e.
    7 Mar 2014, 03:59 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11605) | Send Message
     
    Don't know about your niece or whatever ; ) but AMD needs to walk the talk in the server business. After all, more Verizon type deals were announced to be in the pipeline already two ERs ago(!), but when I last looked, its valves remain shut.
    7 Mar 2014, 04:03 PM Reply Like
  • Stephen Aniston
    , contributor
    Comments (3191) | Send Message
     
    I feel sorry for the Euros - $1.39/euro.. LOL.. You guys never catch a break. At least you can come on vacation and visit Ohio LOL
    7 Mar 2014, 04:03 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (11605) | Send Message
     
    If the €/$ FX continues like it does, I buy a vacated Blockbuster or Radio Shack in Columbus and transform it into America's first IKEA-hacker convention centre.
    7 Mar 2014, 04:09 PM Reply Like
  • ivousa
    , contributor
    Comments (722) | Send Message
     
    @Andreas I think they are waiting for you to sell your shares and then it can go back up above $5.00 :-)
    7 Mar 2014, 05:42 PM Reply Like
  • mKiwi
    , contributor
    Comments (1017) | Send Message
     
    AMD could be keeper AH.
    7 Mar 2014, 06:18 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2676) | Send Message
     
    That would be typical. With RR talking up sustainable profit, it'll be just our luck that this time AMD bolts upward on improving margins and profit of a penny or two, when last time it crashed on $0.06.

     

    I removed all my AMD hedges a few days back around $3.62. I'll probably re-initiate my bull call spreads if I see a mid $4 price. Better safe than sorry...
    8 Mar 2014, 12:56 PM Reply Like
  • ATX
    , contributor
    Comments (99) | Send Message
     
    AMD shares held by:
    Insider: 15.25%
    Institution: 37.6%
    Public: 47.14%
    If the insider has no confidence in the company, they would be holding less than 1%, people shorting this stock is making a bad call, they have sustainable business model, their GPU revenue already surpass their CPU revenue, they didn't pay ATI 5B for nothing.
    7 Mar 2014, 04:33 PM Reply Like
  • rav55
    , contributor
    Comments (1303) | Send Message
     
    ...and chances are insiders have a fair amount of options as well.
    21 Mar 2014, 05:52 AM Reply Like
  • Liv2rydd
    , contributor
    Comments (2) | Send Message
     
    I've been saying the following for some time now and the difference in AMD's success will be Rory Read.
    7 Mar 2014, 04:33 PM Reply Like
  • rav55
    , contributor
    Comments (1303) | Send Message
     
    It's amazing how a few words from RR can change sentiment. Maybe he should do this more often?
    21 Mar 2014, 05:53 AM Reply Like
  • mKiwi
    , contributor
    Comments (1017) | Send Message
     
    Advanced Micro Devices, Inc. (AMD) Calls Active Amid Unexpected Rise

     

    "Option Brief: Advanced Micro Devices, Inc. (NYSE:http://bit.ly/IGAsgJ) has jumped 6.6% to $3.98 today on no apparent news, bringing the stock back above its year-to-date breakeven mark (and perhaps prompting some uncertainty in the heart of Monday's option bear).........."

     

    http://bit.ly/1ikDf5W

     

    Interesting Options Volume for Advanced Micro Devices (AMD)

     

    "NEW YORK (AVAFIN) -- Advanced Micro Devices options set a new 90-day record for the number of call contracts that exchanged hands between the buyers and the sellers. Aggregate volume of puts was 6,121 and calls was 48,285 equating to a 0.13 put/call ratio."

     

    http://bit.ly/MV5WHE

     

    Fast Money Final Trade: EWY, AMD, PLCE & WWE

     

    http://yhoo.it/MV4DZt
    7 Mar 2014, 06:00 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2676) | Send Message
     
    Quick question - when they put out numbers like that, is it the number of trades, or the number of contracts?

     

    Lets say I bought 100 calls on that day - do I count as 100/48285 or 1/48285?

     

    -Mike
    8 Mar 2014, 12:59 PM Reply Like
  • mKiwi
    , contributor
    Comments (1017) | Send Message
     
    Lenovo Essential G585 15.6" 4GB 1TB Laptop

     

    "Built to last and ultimately affordable, the Lenovo G585 notebooks make sure that you have all your essentials in place. It features up to AMD E2 processors. HD graphics support, stereo speakers and integrated DVD reader/writer or Blue-ray Disc drive make these notebooks good for basic multimedia. Plus, features like VeriFace face recognition technology provides a fun and easy way to login to your PC."

     

    http://bit.ly/1hVcYIB

     

    Xolo Win With Windows 8.1 Showcased In India

     

    "We at Gizmodo India were happy to see the names of the Indian handset brands Lava and Karbonn mentioned in the list.

     

    Today at a Microsoft event, the Indian handset and tablet maker Xolo showcased its Xolo Win Tablet."

     

    http://bit.ly/1hVeGtt

     

    Xolo Win first cut: The first Windows 8. 1 tablet from an Indian brand

     

    http://bit.ly/1ikIF0L
    7 Mar 2014, 06:20 PM Reply Like
  • parapraxis
    , contributor
    Comments (11) | Send Message
     
    Dumped my AMD at 3.70. But wishing Rory Reed and company a very successful future.
    7 Mar 2014, 09:04 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2676) | Send Message
     
    Why would you do that now? They're likely going to hit $5+ sometime this year. Some of the bulls here are hoping for $12+
    8 Mar 2014, 01:00 PM Reply Like
  • Fiberton
    , contributor
    Comments (2897) | Send Message
     
    @Stock Market Mike I would be happy with 7. As I trade in and out.
    10 Mar 2014, 04:41 PM Reply Like
  • parapraxis
    , contributor
    Comments (11) | Send Message
     
    My earnings from AMD were moved elsewhere. I have not ruled out a return to AMD, but should I return it will be with more shares than I previously held and I will buy at equal or lesser value. I took profits from AMD and should I reenter it will be at an even better position than previously held. I agree with you, AMD is going to jump, the issue is WHEN. Ive been following closely for nearly two years and my read is I will have an opportunity yet, to jump in at less than when I took profits. If I miss the boat, I still wish those of you still in there a great bullish trip.
    19 Mar 2014, 06:44 AM Reply Like
  • rav55
    , contributor
    Comments (1303) | Send Message
     
    Big mistake. Opening today @ 4.07.
    21 Mar 2014, 05:54 AM Reply Like
  • True Candle
    , contributor
    Comments (69) | Send Message
     
    I held my shares for 2 months and sold for $3.77 the day it went up over $4 :(.

     

    Will have to wait till it goes back down or in case of success of AMD shares, then I will have to forget about buying shares anytime soon.
    10 Mar 2014, 08:48 PM Reply Like
  • rav55
    , contributor
    Comments (1303) | Send Message
     
    Sell before the close the day they report. Then buy back in sfter the dip and increase your position.

     

    AMD will continue to rise.
    21 Mar 2014, 05:56 AM Reply Like
  • Market DJ
    , contributor
    Comments (698) | Send Message
     
    He's right. It's as easy as pushing buttons $$$$…..

     

    Look at the chart for the last three earnings reports: July, October, and January….
    21 Mar 2014, 07:41 AM Reply Like
  • ivousa
    , contributor
    Comments (722) | Send Message
     
    @rav55,

     

    this is becoming too easy-I think at some point they will surprise us all and share price will go up after ER not down as everybody is used to.
    21 Mar 2014, 10:23 AM Reply Like
  • ivousa
    , contributor
    Comments (722) | Send Message
     
    eventually this will change though-may even go up after ER ,maybe not this time but you never know.
    21 Mar 2014, 10:24 AM Reply Like
  • ivousa
    , contributor
    Comments (722) | Send Message
     
    True Candle,
    thanks I probably got some of your shares when I added more :-)
    You may still have a chance to get in around $3.80 if it retests this again like yesterday.We will see retesting 52 week high $4.65 before earnings soon.
    11 Mar 2014, 10:40 AM Reply Like
  • kjurden
    , contributor
    Comments (725) | Send Message
     
    @True Candle/Ivousa...ME TOO! I'm liking today's prospects.
    11 Mar 2014, 10:52 AM Reply Like
  • Fiberton
    , contributor
    Comments (2897) | Send Message
     
    @ivousa Yea we will push almost 5.00 right before earnings.
    11 Mar 2014, 12:55 PM Reply Like
  • ivousa
    , contributor
    Comments (722) | Send Message
     
    @Kjurden/Fiberton,
    agreed scoop more while you still can today around $3.80 level
    11 Mar 2014, 03:57 PM Reply Like
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