OK, Fools -- Advanced Micro Devices
You could say that AMD got the price appreciation it deserves on Wednesday, riding the coattails of archrival Intel
AMD reported $1.4 billion of third-quarter revenue, or 18% growth from the second quarter. An $0.18 net loss per share easily trumped last quarter's $0.49 loss per share -- and both the graphics and CPU divisions reported positive operating earnings this time. Average selling prices per microprocessor went up, the manufacturing arm is getting more efficient, and AMD's tight rein on operating expenses has put the company on track for bottom-line profits in our lifetime.
The product pipeline is showing muscle, too: The Radeon HD 5000 line of graphics processors are crushing the best NVIDIA
Outgoing CFO Bob Rivet said that AMD is "operating at a grounded and sustainable business model, the benefits of which will be amplified with the return to normal IT spending in the commercial sector." When Microsoft
CEO Dirk Meyer believes that Microsoft's upgrade coupons for today's Vista machines should smooth out the effect of Windows 7 upgrades on system sales, and guides sequential growth to just below the normal 9% level. And this cautious outlook could be the reason behind the price drop. In the words of the market, “Beat the Street all you want, but don't you dare set our short-term expectations too low!”
Meyer's view on that issue echoes the long-term mindset of leaders like Cisco Systems
Is this the right time to buy AMD? The comments box is waiting below, whether you agree or just want to call me an AMD fanboy. Have at it!
Fool contributor Anders Bylund owns shares in AMD, but he holds no other position in any of the companies discussed here. NVIDIA is a Motley Fool Stock Advisor pick. Intel and Microsoft are Motley Fool Inside Value recommendations. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.