2-Star Stocks Poised to Plunge: AMD? (AMD, IBM, INTC, NVDA)

2-Star Stocks Poised to Plunge: AMD?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled chip maker Advanced Micro Devices (NYSE: AMD ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at AMD and see what CAPS investors are saying about the stock right now.

AMD facts

Headquarters (Founded)	Sunnyvale, Calif. (1969)
Market Cap	$1.9 billion
Industry	Semiconductors
Trailing-12-Month Revenue	$6.4 billion
Management	CEO Rory Read (since August 2011) Interim CFO Devinder Kumar (since September 2012)
Return on Capital (average, past 3 years)	2.6%
Cash/Debt	$1.6 billion / $2.0 billion
Competitors	Intel (Nasdaq: INTC ) IBM (NYSE: IBM ) NVIDIA (Nasdaq: NVDA )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 18% of the 3,739 members who have rated AMD believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, GenFrogKing, touched on the competitive headwinds working against AMD:

Why would anyone pick an AMD chip over an Intel [Ivy Bridge] or even [Sandy Bridge] chip? Intel is unparalleled in its ability to service personal computers. Plus in the near future, Intel will be releasing its Haswell CPUs for many mobile devices including Tablets. AMD is simply way behind the game here.

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Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of IBM and Intel. Motley Fool newsletter services recommend Intel and NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

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Report this Comment On October 16, 2012, at 1:26 PM, TEBuddy wrote:

I would pick an AMD chip over an Intel chip any day, because it offers better graphics in small form factors. No need to sacrifice graphics for battery life. AMD simply dominates Intel in this respect, Intel is way behind and will not catch up. AMD portables match or beat Intel battery life but with better graphics capabilities. Its not difficult to understand, many people just don't like to listen to it. If you have some absolute need for a specific applciation that requires the greatest integer performance or something, that is one thing. But most people wont really care if their MP3 takes 1 more second to compress, or video takes 20 more seconds to encode, on top of the 4 minutes it already takes. So why pay more, if you dont need that specific performance?
AMD's 2013 release coming up in a few months will close the gap in a big way on those cpu type benchmarks, regardless of what manufacturing technology Intel buys and uses. AMD will stil dominate Intel in its graphics performance, and AMD will be as good as Intel in battery life, and AMD will be more than good for computing performance, all with less advanced manufacturing technology. What does that tell you about AMD's design skill, they make an efficient processor.

updated Moments ago Sponsored by:
	DOW	15,303.10	8.60	0.06%
	S&P 500	1,649.60	-0.91	-0.06%
	NASD	3,459.14	-0.28	-0.01%

INTC	$23.92		-0.13	-0.53%
Intel		CAPS Rating:

NVDA	$14.54		-0.09	-0.62%
NVIDIA		CAPS Rating:

AMD	$4.05		+0.04	+1.00%
Advanced Micro Dev…		CAPS Rating:

IBM	$205.72		-0.44	-0.21%
International Busi…		CAPS Rating:

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2-Star Stocks Poised to Plunge: AMD?

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Report this Comment On October 16, 2012, at 1:26 PM, TEBuddy wrote:

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