Advanced Micro Devices is the 2nd largest producer of microprocessors. Our stock pick prediction and analysis is based on predicting future growth of AMD. AMD is a growing company with over 5 billion in annual sales. AMD acquired ATI in 2006 which is one of the largest graphic chips makers in the world.
The launch of new Fusion APU chips which launched in late 2010 should help AMD take back some market share from Intel. For a long time, AMD has just been trying to keep pace with Intel. Every time AMD has gotten close to catching up with Intel, it has fallen behind due to lack of capital investment and price wars. When AMD acquired ATI, it got control of the leading graphic chip manufacturer. ATI is a trusted brand by gamers and users that need high end graphics solutions. While Intel has its own integrated graphic offerings, it by no means has the technology to match what ATI offers.
So what we should see is AMD quickly capture market share from Intel in the low and mid end sector. The Atom chip used in low-end notebooks and desktops will likely be superceded by both the AMD Fusion and the I5. Customers are demanding that chips by powerful enough to play 1080p video smoothly even on low end PC’s. AMD could become the next Apple Inc. When you look at how cheap AMD is in terms of market cap, it could hit $50 in 5 years if everything goes smoothly.
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