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Midday Gainers / Losers

Comments (5)
  • Andreas Hopf
    , contributor
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    The poor chap missed the call last week, but nevertheless, a classic Rasgon on AMD:

     

    The report also has sparked speculation that the PC market may stabilizing, although Bernstein Research analyst Stacy Rasgon said AMD still faces serious challenges. "We admit, we were wrong on the trajectory of AMD's revenue profile in the second quarter and at least for the moment the collapse of PC revenues that we have seen in recent quarters stabilized a bit with revenue declines about in-line with the market," he told clients in a note. But even as PCs appear to be stabilizing, "AMD's competitive position remains fairly awful, regardless of near-term upside."
    21 Apr 2014, 01:25 PM Reply Like
  • Justin Jaynes
    , contributor
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    Rasgon is beating the last straw he has left, but it's a big straw.
    21 Apr 2014, 01:41 PM Reply Like
  • Andreas Hopf
    , contributor
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    I had planned to retire on AMD and don a straw hat ever after ; D
    21 Apr 2014, 01:50 PM Reply Like
  • JeremySpoken
    , contributor
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    Ragson was full of misdirection as usual in today's note but he came around to stating rather baldly the situation of AMD:

     

    "Thus, the long bet from here becomes dependent on new opportunities (semicustom, ARM servers, etc). However, while the company talked up an additional 1-2 semicustom wins coming this year, revenues are not likely to ramp until close to 2016, and revenues from ARM servers are unlikely to come any sooner."

     

    Quote courtesy of Barron's. I suppose this is a good thing for my Jan 2016 LEAPs, but I'm wondering how much near-term upside remains after today's action. It's evident to me that Ragson et al. are assigning a null or perhaps even negative enterprise value to the Computing Solutions segment so short of full stabilization of PC revenues (which would force a reevaluation of CS) the market is likely to need a big win in servers or semicustom to see a significant appreciation in AMD's market cap.
    21 Apr 2014, 04:00 PM Reply Like
  • Andreas Hopf
    , contributor
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    Agree. As nice as things may be, consoles aren't everything. It will be interesting to see, from which area AMD's next storytelling potential will emerge that may entice buyers to buy in substantially.
    21 Apr 2014, 06:07 PM Reply Like
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