Advanced Micro Devices, Inc. (NYSE:AMD) With Bold Plans for 2020
Advanced Micro Devices, Inc. (NYSE:AMD) came up with a press release a few hours ago, informing of future plans and projections. AMD stock traded near its average daily volume, at 14.7 million shares changing hands, and ended the day 1.5% in the red, at $4.40 per share.
AMD announced plans to improve and perfect its accelerated processing unit (APU) technology and subsequently deliver energy efficiency gains of up to 2500% until 2020. The company’s CTO Mark Papermaster made the announcement during an international IT conference in China yesterday. The same PR underlines this as a bold goal, as AMD managed to improve its energy efficiency ‘more than 10x’ over the past six years, so a 25x increase is something to look forward to.
The PR is further padded with figures of global power consumption by computers and explains the company’s ongoing commitment to work towards lowering expenses through its new technologies.
AMD is expected to report Q2 earnings just shy of a month from now, on July 17. The company will conduct a conference call after the markets close to brief shareholders on its performance. AMD‘s last quarterly covers the period ended March 2014 and contains the following:
- $2.6 billion in current assets
- $1.3 billion in current liabilities
- $1.4 billion in quarterly revenues
- $20 million in quarterly net loss
AMD managed to beat analyst EPS estimates for the last three quarters of 2013, recovering from an abysmal ride in 2012. The launch of the ‘next gen’ of game consoles boosted AMD in the new year as both Sony and Mictosoft’s offerings had AMD processors inside them. However, the company once again stumbled at the $4.50 price level, failing to close over it after a brief intra-day pop in early 2014, so there may be resistance at this point on the chart.
With rival NVidia Corp. (NASDAQ:NVDA) seemingly setting its sights on goals that differ from AMD‘s current plans, only time will tell how the two companies will fare in the never-ending struggle for dominance in the GPU market.
