Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled chip maker Advanced Micro Devices (NYSE:AMD) has received the distressing two-star ranking.

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

AMD facts

Headquarters (founded)

Sunnyvale, California (1969)

Market Cap

$1.51 billion



TTM Revenue

$5.81 billion


CEO Derrick Meyer (since 2008)

CFO Robert Rivet (since 2000)

Return on Capital (average, last five years and TTM)

(1.6%) and (8.8%)




Analog Devices (NYSE:ADI)

CAPS members bearish on AMD also bearish on

Citigroup (NYSE:C),

General Motors (NYSE:GM)

CAPS members bullish on AMD also bullish on


Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 184 of the 639 All-Star members who have rated AMD -- or 29% -- believe the stock will underperform the S&P 500 going forward. Among the entire bear population are dexion10, who is ranked in the top 2% of our community, and TAG042404.

Five days ago, dexion10 summed up the growing concerns of our community: "too much debt for the equity to survive and too little sales volume for operating profits not to nose dive."

In a pitch from January, TAG042404 offers a semi-glimmer of hope, but sides with the bear camp, nonetheless:

AMD, good history of products, but in a global recession companies like AMD have a hard time getting the necessary traction. I am unsure how AMD still remains solvent with approximately 2 years of negative EPS. This could be a great speculative stock at the current prices, but could be a trap. I feel AMD will have a tough time in the short term market, but if they can provide a new product that truly challenges AMD CPUs recent performances, they have a chance.

What do you think about AMD, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. NVIDIA and Apple are Motley Fool Stock Advisor selections. Intel is a choice of Inside Value, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.