Boston, MA 01/27/2014 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD) continue its journey in the down lane as it loses by 4.14% again on Friday, closing the week at $3.47. The chipmaker has followed the downtrend ever since it reported its forth quarterly earnings.
Dull In spite Reasonable Results
Although the numbers are positive, but still the company did not get attractive as the PC shipments continue to sink. The fourth quarter was fair enough if the revenue consideration is taken, which is up overall 38%year-over-year, but the revenues from a main source, PC processors, took a dip. PC Shipments are under pressure, as in 2013, they reported a decline of 10% alone, leaving AMD’s revenue shrink by 2% Y-O-Y, and the net loss reported as 11 cents per share or $83 million. In this scenario, Advanced Micro Devices, Inc. (NYSE:AMD) is not alone, as other PC makers like Intel, HP and Dell have also remained largely affected by this occurrence. So, in a nutshell, the year 2014 too looks gloomy for AMD.
Semi-Custom Business Rescued
But, the company’s semi-custom business turned out to be a savior in a big way. The loss in the PC processor division was largely made good by its semi-custom chips, which is installed in Microsoft’s Xbox and Sony’s PlayStation. The two popular gaming consoles recorded 7 million sales during the fourth quarter. Additionally, the company’s visual and graphic’s business witnessed a consecutive gain in revenues by 29%. AMD could have been badly hit if Xbox One and PS4 would have had not been launched.
In time to come, Advanced Micro Devices, Inc. (NYSE:AMD) can expect a weaker first quarter, as there is no good news expected for PC shipments. Even as the Xbox and PS4 are already launched, there is pretty less room left for any upsurge in revenues. Foreseeing which, the company has already a set a low tone for its first quarter results, to decline 13.19%.
