Why Advanced Micro Devices Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Advanced Micro Devices (NYSE: AMD  ) popped today by as much as 13% on a Bloomberg report that Microsoft's (NASDAQ: MSFT  ) next Xbox gaming console will use AMD chips.

So what: Codenamed "Jaguar," AMD's chips are reportedly set to power the software giant's next-generation Xbox gaming console, which is expected to be unveiled next month. AMD chips are also powering Sony's upcoming PlayStation 4, displacing graphics rival NVIDIA.

Now what: The move will mark a transition to x86 architecture, replacing the Power PC architecture currently in use. Rumors of seeing AMD in the next Xbox aren't exactly new, but having a high-profile outlet like Bloomberg reporting it adds to the credibility. CEO Rory Read has been trying to diversify away from the stagnant PC market, and while the console gaming market offers less volume than PCs, it would still be an incremental gain for the chip maker.

Interested in more info on Advanced Micro Devices? Add it to your watchlist by clicking here.

The mobile revolution is still in its infancy, but with so many different companies, it can be daunting to know how to profit in the space. Fortunately, The Motley Fool has released a free report on mobile named "The Next Trillion-Dollar Revolution" that tells you how. The report describes why this seismic shift will dwarf any other technology revolution seen before it and also names the company at the forefront of the trend. You can access this report today by clicking here -- it's free.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2351971, ~/Articles/ArticleHandler.aspx, 10/21/2014 5:17:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement