Despite some pull back in the market recently, chip stock Advanced Micro Devices, Inc (NYSE: AMD) has largely held up as have Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVDA). I should mention that we recently had an open position in Advanced Micro Devices in our SmallCap Network Elite Opportunity (SCN EO) portfolio from last summer up until late January when we locked in a small loss. We decided to get out in part because it's a trading portfolio and also because AMD's shares sank once more after the company had issued an earnings report – a repeat of what happened after three previous earnings reports. Nevertheless and if you are an investor with a long term time horizon, you might want to consider the following news:
What Tech Sell Off? In a recent CNBC segment, it was noted that despite the recent selloff in the broader tech space, semiconductor companies specializing in chips that power devices like smartphones and tablets have held up well. Some of the big winners since early March include Intel, Advanced Micro Devices, Taiwan Semiconductor and Freescale Semiconductors, which are up better than 7% as these companies are benefiting from a shift in the tech sector and the stabilization of the PC market (according to Chad Morganlander with Stifel Nicolaus). World's Fastest Graphics Card Launched. On Tuesday, Advanced Micro Devices announced the launch of the world's fastest and most powerful graphics card - the AMD Radeon™ R9 295X2. Forbes already has a detailed review, which concluded by saying:What I know for certain is that AMD's Radeon 295X2 is a compelling product, and that it justifies its asking price in performance, thermals, and aesthetics. And I hope it signals a bold new direction for AMD in terms of design language and branding. Quite simply, if you're not married to Nvidia's robust ecosystem and want a 4K-capable card that stays cool and quiet, you can't go wrong with the Radeon R9 295X2.
There are also good reviews from AnandTech, PCWorld, Kotaku , among other sites, that are worth looking at. The card will be available later this month at a starting price of $1499 USD and EUR 1099 (excluding VAT).
AMD Inks a $1.2 Billion Deal With GlobalFoundries. At the beginning of the month, Advanced Micro Devices announced announced that it had amended its Wafer Supply Agreement (WSA) with GlobalFoundries. Under the amendment, AMD expects to pay GlobalFoundries approximately $1.2 billion in 2014. This expectation is based on AMD's current PC market expectations and the manufacturing of certain Graphics Processor Units (GPUs) and semi-custom game console products at GlobalFoundries in 2014. Barron's noted that AMD had paid GlobalFoundries $960 million for chips to be made last year but bought no gaming chips, graphics processing units or GPUs. Annual Meeting of Stockholders. AMD is scheduled to hold its Annual Meeting of Stockholders on Thursday, May 8, at 9:00 am. A real-time video webcast of the meeting will be available at www.virtualshareholdermeeting.com/AMD14 plus a replay of the video webcast can be accessed at ir.amd.com for approximately four hours after the conclusion of the live event. Share Performance. Advanced Micro Devices is up 3.4% since the start of the year, up 73.8% over the past year and up 16% over the past five years; but as you can see from the following performance chart, AMD has both over and underperformed chip stocks Intel Corporation and NVIDIA Corporation:Finally, here is a look at the latest technical charts for all three chip stocks:
SmallCap Network Elite Opportunity (SCN EO) had an open position in AMD. To find out what other open positions SCN EO currently has, and to learn why so many traders and investors are relying on this premium subscription service, click here to find out more.
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