AMD's newly launched products have improved the market prospects of the chip maker, making its stock a more attractive short target.
AMD Stock
According to The Wall Street Journal, Advanced Micro Devices' (AMD) stock is not usually considered a safe bet among chip companies. But the latest market successes of the company made betting against it a no longer a sure thing either.
Profit Confidential explains that, in the 1990s and into early 2000, the stock market used to be about hardware behind servers and personal computers (PCs) and back then stocks like Cisco Systems, Intel and AMD were among the starts of Wall Street. But the current stock market has become focused on the Internet and social media stocks.
AMD Then And Now
The PC used to be all the rage in the 1990s and was achieving a rapid adoption rate in the retail market as well as in business. Intel and AMD were engaged in a fierce competition on the market to develop the fastest CPU. Prior to the technology meltdown in early 2000, Intel stock was below $80.00, while AMD stock was trading at just below $50.00.
Today Intel and AMD continue to compete in the fading PC space, while numerous other chipmakers emerge in mobility and other more growth-oriented areas. AMD stock is nowhere near the levels it was back in its glory days. Last Thursday, Sept. 22, AMD stock was trading way down at $6.40.
While this figure might seem not much, in fact, AMD stock is actually at its highest level since May 2012. From its 52-week low of $1.65, at $6.40 AMD stock is well up. This shows the renewed hope on Wall Street for AMD as a promising chip maker company.
After launching it latest APUs and GPUs on the market, some analysts are expecting that AMD will report revenue growth of 3.50% and 6.0%, respectively for 2016 and 2017. There is also optimism on the market about company's soon-to-be-launched next generation "Zen" processor.
