Topic: How To Invest

Pat: what is your recommendation going forward on Advanced Micro Devices? Thank you.

Article Excerpt

Advanced Micro Devices Inc., $3.75, symbol AMD on New York (Shares outstanding: 714.5 million; Market cap: $2.7 billion; www.amd.com), makes computer chips. The company produces microprocessors for desktops, laptops and servers, including its Athlon, Turion and Opteron designs, which are compatible with Microsoft Windows applications. AMD also makes circuits for communications equipment and graphics processors through ATI, which it bought for $5.4 billion in 2006. AMD continues to face strong competition from other chipmakers. At the same time, more consumers are switching to mobile devices and away from desktops and laptops. That’s cutting demand for the company’s chips. In the three months ended June 29, 2013, AMD lost $65 million, or $0.09 a share. A year earlier, it earned $46 million, or $0.06 a share. These figures exclude costs related to a major restructuring plan, which consists of merging facilities and cutting 14% of the company’s workforce. AMD expects these moves to save it $190 million in 2013. Revenue declined 17.8%, to $1.2 billion…