We believe [AMD's] 'under the radar' transition story is a key driver of value, although potentially messy," writes FBR's Chris Rolland, reiterating an Outperform and upping his PT to $6. "While structural PC headwinds are discouraging, we believe that AMD’s (AMD +12.6%) non-PC segments will more than replace lost PC revenue over the next few years."
Nomura (Neutral) is pleased with the pace of next-gen console sales - Sony and Microsoft have announced 12M sales between them - and notes prior-gen console sales only totaled 7M-9M at a similar point in time.
Bernstein is staying bearish: The firm estimates AMD's core PC/console EPS power is around $0.20, and doesn't see revenue from ARM server CPU sales and new semi-custom wins ramping until 2016.
AMD mentioned on its CC (transcript) it now expects global PC shipments to fall 7%-10% in 2014 vs.a prior 10%; IDC and Gartner think a smaller decline was seen in Q1. The company also mentioned its first ARM server CPUs (codenamed Seattle) will begin shipping in Q4. AppliedMicro, Marvell, and Cavium will be among the chipmakers providing competition.
19% of the float was shorted as of March 31. Only 7 of the 26 analysts covering AMD are currently bullish; 13 are neutral, and 6 bearish.