SOURCE: FOOL.com
The Motley Fool Take on Friday, October 8, 2004
Can AMD Unseat Intel?
September jobs growth was weaker than Wall Street anticipated. The Labor Department today said the U.S. economy added 96,000 jobs last month. Economists polled by CBSMarketWatch had anticipated payrolls to grow by some 138,000. The unemployment rate remained at 5.4%....
Can AMD Unseat Intel?
By Bill Mann (TMF Otter)
Advanced Micro Devices (NYSE: AMD) continues to plug away at microprocessor rival Intel's (Nasdaq: INTC) lead, which once seemed insurmountable.
In its report on third-quarter 2004 results, AMD swung from a year-ago loss of $31 million to a profit of $43.8 million, or $0.12 per share. This comes at a time when companies in every element of the semiconductor market seem to be streaming to the confessional with bad news, most recently Magma Design Automation (Nasdaq: LAVA), Zoran Corporation (Nasdaq: ZRAN), and Credence Systems (Nasdaq: CMOS). AMD's improved performance comes at a time when there are no tailwinds to be found.
AMD reported a 34% rise in sales of processors over the same quarter last year. Processors account for a little more than half of the company's total revenues. For comparison, Intel's own forecasts in processors calls for growth from 4-5%, a number that may prove, if anything, optimistic. As we noted in July....
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