Good News Watch: Advanced Micro Devices (AMD) After Earnings

Its been about three weeks since Advanced Micro Devices, Inc (NYSE: AMD) reported earnings where good just wasn't good enough plus there was some bad timing as there were a slew of earnings reports around that time where major tech stocks like Microsoft Corporation (NASDAQ: MSFT) and Google (NASDAQ: GOOG) missed Wall Street expectations. After the earnings report came out, our SmallCap Network Elite Opportunity (SCN EO) portfolio position in Advanced Micro Devices went from a handsome profit to being down about 6% and we are still down about 4%. Nevertheless and while it's the height of summer where there is not going to be much news, there is the following both good and some not so good news about Advanced Micro Devices to keep investors and traders alike interested in the stock:

Ultra-Low Power APU for Embedded Designs Unveiled. Advanced Micro Devices recently introduced its most power-stingy G-Series APU (accelerated processing units) for embedded systems to date. According to Arun Iyengar, the VP and general manager of AMD's Embedded Systems unit:

"The advance of APU processor design, the Surround Computing era, and the Internet of Things has created the demand for embedded devices that are low power but also offer excellent compute and graphics performance. AMD Embedded G-Series SOC products offer unparalleled compute, graphics and I/O integration, resulting in fewer board components, low-power use, and reduced complexity and overhead cost."

New Global Design Center in Hyderabad Inaugurated. Advanced Micro Devices has inaugurated a new 175,000-sft facility global design center in Hyderabad, India, that will further both software and hardware innovations at the heart of AMD's APUs. Business Standard noted that the company spends around $1-billion each year to develop products and employs over 10,000 people globally, including 6,000 engineers. Of these, around 550 engineers will work out of the Hyderabad center and an equal number in the Bangalore facility. Confusion Over Kaveri. There appears to be some confusion over whether or not Advanced Micro Devices' Kaveri accelerated processing unit will be delayed or not as xbitlabs.com has reported that it looks like Kaveri will be formally unleashed at the Consumer Electronics Show 2014 to reach the market in late Q1 or early Q2 next year – meaning a one year delay compared to the original schedule. VR-Zone.com also reported that documents they have seen show that OEMs were told at Computex to expect the chip to be launched into channel by mid-February 2014 but AMD has responded by saying: "AMD's 'Kaveri' high-performance APU remains on track and will start shipping to customers in Q4 2013, with first public availability in the desktop component channel very early in Q1 2014" Goldman Sachs Goes Bearish. Goldman Sachs' David Kostin and his research team recently came out with their monthly chartbook about the economy and stocks that includes a list of forty stocks with the greatest upside and downside potential based upon the firm's target prices. Unfortunately, Advanced Micro Devices had the dubious distinction of coming in at number one for being the most overbought and could fall 40.3% to hit Goldman's target price. To be fair, the top five also included Hewlett-Packard Company (NYSE: HPQ) and Intel Corporation (NASDAQ: INTC) with other big tech names also making the complete list. Share Performance. Advanced Micro Devices is up 62.7% since the start of the year, but the stock is still down 9.3% over the past year and down 27.7% over the past five years:

Here is the latest technical chart for AMD:

In other words, we may be in the middle of the slowest trading period in the summer, but traders and investors alike should keep an eye on Advanced Micro Devices and any news about it that could move the stock either way. 

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