Advanced Micro DevicesAMD

Morningstar Rating

Stock Research and Analysis

by Andy Ng

Advanced Micro Devices has been hampered by a cyclical downturn in the semiconductor industry. While business conditions have begun to improve, we think the firm will continue to struggle to keep up with Intel INTC.

The PC processor industry has long Read more

Bulls Say

Despite falling behind recently, AMD is still much closer to Intel's technology lead than it was in the past.

The ATI acquisition in 2006 allowed AMD to integrate features, such as graphics, onto its product platforms, thereby giving the firm new capabilities to compete with Intel.

The spin-off of AMD's manufacturing operations means that the firm will no longer have to make the massive capital outlays needed for in-house chip production capabilities.

In the past couple of years, AMD's ATI unit has been making a comeback in the graphics processor market against Nvidia NVDA.

Intel recently agreed to pay AMD $1.25 billion in a legal settlement. Read more

Bears Say

Intel remains the dominant player in the processor market and holds advantages over AMD in aspects ranging from R&D and marketing to pricing.

Intel has been further gaining market share at the expense of AMD in recent quarters.

AMD has struggled to keep pace with Intel on the innovation front, particularly during the most recent cyclical downturn. Read more

Strategy

AMD aims to gain market share through continuous innovation in developing better-performing processors. The firm also offers platform solutions to PC makers with its chipsets and graphics chips. AMD Read more

Management

Dirk Meyer took over as CEO from Hector Ruiz in July 2008. Meyer has been with the firm since 1995 and has held a variety of positions, most recently president and COO. He has an impressive engineering background and has been instrumental in the development Read more

Profile

Advanced Micro Devices designs and produces microprocessors and low-power processor solutions for the computer, communications, and consumer electronics industries. The Read more

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