Back to top

The Zacks Analyst Blog Highlights: Advanced Micro Devices, Apple, Intel, Microsoft and NVIDIA

Read MoreHide Full Article

For Immediate Release

Chicago, IL – July 12, 2012 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Advanced Micro Devices, Inc. (AMD - Free Report) , Apple Inc. (AAPL - Free Report) , Intel (INTC - Free Report) ), Microsoft Corp. (MSFT - Free Report) and NVIDIA Corp. (NVDA - Free Report) .


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Wednesday’s Analyst Blog:


Advanced Micro Trims Sales Guidance


Advanced Micro Devices, Inc. (AMD - Free Report) slashed its revenue guidance for the second quarter of 2012.

The chip maker now expects sales to decrease 11% sequentially versus its previous forecast of a 3% increase (+/- 3%). However, the company reiterated its gross margin guidance of flat to slightly up from the previous quarter.

We believe that management’s previous guidance was based on the strong product cycle (Trinity, Brazos2.0, 28nm GPU) and steady progress on 32nm yields. But demand appears to be weaker than expected due to softness in China, uncertainty in Europe as well as lingering weakness in the U.S. personal computer market.

Competition has also increased, with price cuts in the PC business because of the growing popularity of Apple Inc.’s (AAPL - Free Report) iPad and other tablets. Additionally, Advanced Micro faces growing competition from Intel's (INTC - Free Report) IvyBridge, as well as its growing capacity and lead at 22nm.

Advanced Micro is the second largest producer of microprocessors, GPUs and chipsets in the world. The company reported revenues of $1.59 billion in the first quarter, down 6.3% sequentially and 1.7% year over year. However, earnings of 17 cents a share were well ahead of the Zacks Consensus Estimate of 9 cents. The company’s compelling product line-up, new products (Brazos, Llano and Bulldozer), growing position in graphics and cost efficiencies should drive improved results going forward.

The company is expected to report second quarter results on July 19. We believe that the company will face increased competition this year when Microsoft Corp. (MSFT - Free Report) begins selling a new version of its operating system aimed at tablets and other mobile devices that will work on processors from Intel and NVIDIA Corp. (NVDA - Free Report) .

However, we believe that most of AMD’s business is in chips for PCs that don’t have a meaningful presence in smartphones and tablets. In order to deal with Intel and NVIDIA, Advanced Micro also needs to enter into these emerging markets.

Advanced Micro shares currently carry a Zacks Rank of #3, implying a Hold recommendation in the short term (1–3 months).





Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

More from Zacks Press Releases

You May Like