Boston, MA 01/17/2013 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD) reports its Q4 on January 21, this will follow a profitable and positive cash flow third quarter. In the previous quarter, the company managed the highest sequential growth of 26 percent in nearly five years. The question now is whether the company will continue the growth and profitability momentum start in Q3 when it reports Q4 next week.
The stock of Advanced Micro is up more than 15 percent since the year started. The consensus revenue estimate for Q4 is $1.54 billion revenue which indicates about 33 percent over the previous year level. Will the company attain or exceed this revenue prediction in the forthcoming earnings?
There are several indicators that Advanced Micro Devices, Inc. (NYSE:AMD) is headed to close fiscal 2013 on a positive note. The bottoming up of the PC market and opportunities arising in new markets are allowing for performance improvement which should be reflected in the Q4 results.
Growth Strategy
Advanced Micro Devices, Inc. (NYSE:AMD) is making fast success in the professional GPU market. The company currently controls 21 percent of this market which is dominated by Nvidia (NVDA). However, its deal with Apple Inc (NASDAQ:AAPL) which resulted in the company supply the graphics solutions used in the recently launched Mac Pros desktop is an indication that AMD is gaining the attention of big players in the professional GPU market. This latest deal with Apple Inc could take the share of AMD in the professional GPU market to 30 percent by end of this year.
Note strong performance of the professional graphics enabled AMD to enter the profitability and positive cash flow path in the last quarter. This simply means that there are lots of growth opportunities for the company in this market.
As Advanced Micro Devices, Inc. (NYSE:AMD) strives to increase footprint in professional GPU, it is also assuming an important role in games console processors. The company is now driving the revolution in gaming with its chips powering the next-gen consoles Xbox One (MSFT) and PlayStation4 (SNE).
Bottom line
Advanced Micro Devices, Inc. (NYSE:AMD) is keen to generate most of its revenue away from the PC market. Looking at what is already happening, it is important noting that the company is getting many things right in this strategy.
