AMD’s earnings send shares tumbling, analysts’ view mixed

Shares of Sunnyvale chipmaker Advanced Micro Devices dropped nearly 18 percent in early trading Friday after posting earnings yesterday that disappointed Wall Street. But some analysts remain upbeat about the company.

AMD’s second-quarter sales increased 24 percent from a year ago. However, it lost $36 million and its sales of personal computers gave up ground to rival Intel.

In a note to his clients, Bernstein Research analyst Stacy Rasgon termed the results “absolutely woeful.”

Craig Berger of  Hedgeye Risk Management was similarly unimpressed, concluding “AMD still has difficult days ahead as its PC business continues to shrink away due to chronic under-investing and a somewhat revitalized Intel.”

But Canaccord Genuity analyst David Evanson opined that “AMD’s diversification strategy remains on track and positions the company to drive steady long-term topline growth and a return to sustained profitability.”

And Hans Mosesmann of Raymond James Equity Research added, “we believe the company is indeed executing well.”

Photo of AMD’s headquarters by Ben Margo, AP


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