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Things looking up for AMD

by on17 June 2013

SeaMicro might have helped 

Analyst outfit Barrons has come up with the rather surprising view that things are starting to look up for AMD particularly after its somewhat strange purchase of SeaMicro.

In a report, Barrons said that SeaMicro had offered AMD a chance to take share in the mainstream server-computer market, in which Intel sells about 96 percent of the chips. It claimed that SeaMicro's technology looks good; its management team, astute; and the market opportunity, promising.

It backed this up with a comment from Dan Niles, an investor with AlphaOne Capital Partners who thinks that AMD shares could double to over $8 by 2015 if company revenue grows to $7 billion and other sales measurements improve.

This flies in the face of last year when everyone was wondering why AMD bought SeaMicro after Intel had largely walked away from the technology. It also does not recognise that company revenue fell 17 percent last year to $5.4 billion, following gains in 2010 and 2011.

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