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
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 |
Industry |
Semiconductors |
TTM Revenue |
$5.81 billion |
Management |
CEO Derrick Meyer (since 2008) CFO Robert Rivet (since 2000) |
Return on Capital (average, last five years and TTM) |
(1.6%) and (8.8%) |
Competitors |
Intel
NVIDIA
Analog Devices |
CAPS members bearish on AMD also bearish on |
Citigroup
General Motors |
CAPS members bullish on AMD also bullish on |
Apple |
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.
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