Advanced Micro Devices, Inc. (NYSE:AMD) banks on new graphic cards


Dallas, Texas 10/07/2013 (Financialstrend) – Analysts tracking the personal computer market segment are as a bunch are convinced about the impending slowing down of this once vibrant and lucrative market for computer manufactures. A September 30 report from Sterne Agee agency predicts a close to 10% fall in demand in the last three months of the calendar year in comparison to 4Q of FY12. The report goes on to theorize that the fall in PC sales might not be offset by sales of fast selling tablets in the immediate future.

Computer processor chip manufacturing majors like Advanced Micro Devices, Inc. (NYSE:AMD) would be paying close attention to these reports, since any further drop in sales of PC will directly impact their business. In light of this development which has seen its traditional cash cow “chips” market shrinking, AMD has released graphic cards which operate at increased processing speeds at extremely competitive pricing.

One such example is the launch of its R7 and R9 GPU’s. Analysts believe that this move from AMD will directly challenge Nvidia which has its own graphic card products. AMD is also lining up new releases to capture larger share of this lucrative computer parts business. An R9 290 X graphic card is one of the most anticipated product offerings which will cater to the high end graphic card needs. Hawaii is AMD partner on this new series of cards which AMD claims will offer “a deeper level of hardware optimization no other graphics card manufacturer can match.” The R9 will also come equipped with audio software which can be leveraged by game developers.

AMD has a market cap of $2.9 billion with sales of $4.67 billion. The shares of the stock are trading 16% below their 52 week valuation at $3.91 per share.  It had recorded a net loss of $850 million over the past 12 months trailing period.