Advanced Micro Devices, Inc. (NASDAQ:AMD) Struggles
Yesterday Advanced Micro Devices, Inc. (NASDAQ:AMD) closed at $2.28 per share, down 1.3%. The volume came in at approximately 12.4 million shares – slightly below the average.
AMD took a dive on Apr 17, after Q1 results had been released. Longs took a serious hit back then and the price has been stuck around the $2.30 level for about two weeks. The company narrowly missed on revenue and net loss per share.
What may be more troubling for some is the underwhelming guidance for this quarter. Instead of growth, AMD expects a sequential quarterly revenue decrease. Among other things, CEO Dr. Lisa Su stated AMD would be focused on “…delivering a stronger second half of the year…”
Today the company has a scheduled financial analyst’s day, but for the last couple of days leaked materials supposedly from the upcoming event have been popping up in different forums. The slides suggest that AMD is planning to make some big moves in 2016. Notably, new CPU lines maybe using 14nm chips instead of 32nm (assuming the slides are authentic).
Whether such a bold step is exactly what AMD needs, or next year will bring back painful memories of past blunders remains to be seen, and it will be a while before we get that answer. For now, barring some unexpected significant development, shareholders may have to endure more of the same.