AMD Stock Is Well Positioned for 2016
It looks as though Advanced Micro Devices, Inc. (NASDAQ:AMD) has begun to pick up speed this year, as the AMD stock price has soared on several key positive developments. While the company has previously struggled to translate technical success into shareholder wealth, recent initiatives mean that there has never been a better time to take a second look at AMD stock.
Now, it’s certainly important to set up a bit of context here. AMD stock was trading for approximately $40.00 per share nearly a decade ago, but today, it sits at $2.25. So what gives? The decline certainly has nothing to do with the quality of the company’s products, which are top-notch.
Much of the issue stems directly from AMD’s market position in its tech niche, the manufacturing of central processor units (CPUs) for computers. This market is dominated by its archrival Intel Corporation, which is the largest CPU maker in the world. The quality of its own chips is simply not enough for AMD stock to thrive, as Intel is capable of deploying financial and marketing assets far in excess of its smaller competitor. (Source: “AMD Gives Tough Competition to Intel, Once Again!” Gizmoids, November 7, 2015.)
But there is hope for Advance Micro Devices on the horizon.
New AMD Graphics Card Brings Hope for the Company’s Future
The company recently released a completely new and improved graphics software suite, “Radeon Software Crimson Edition,” which promises to revolutionize both gaming and media editing experiences.
The new suite offers 12 new or improved features, upwards of 20% improved accelerated graphics performance levels, energy efficiency adjustability (which promises to essentially halve electricity demand), and, best of all, extreme stability, even under huge graphical computing demand loads. (Source: “HotFix Coming Today For Radeon Software Crimson Edition Bug That’s Killing Graphics Cards,” Forbes, November 30, 2015.)
Indeed, Advance Micro Devices has reiterated its commitment to producing some of the best graphics processors on the planet. This time, it may have hit an absolute homerun, with a subsequent surge in the AMD stock price as the upcoming holiday shopping season hits high gear. The company is clearly now viewing the quality of its products as a top priority, releasing easy-to-use software and hardware that delivers phenomenal results.
AMD’s Radeon product line is focusing on the vertical integration of all graphics-related computer processes, simultaneously focusing on hitting high-performance benchmarks and staying energy efficient. What AMD’s new graphics processor does is provide the best performance, while being among the most energy-conscious of its kind, ultimately delivering the best graphical performance per watt of electricity used.
A company with an industry-revolutionizing and innovative set of products, as well as an environmentally conscious focus? Sounds like a winning combination to me!
The Bottom Line on AMD Stock
With new and innovative products coming out just as we are seeing the holiday shopping season kick into high gear, it looks as if Advanced Micro Devices may have just hit a homerun. When put that way, it would appear that AMD stock is looking mighty undervalued at the moment.