Advanced Micro Devices, Inc. (NYSE:AMD): Chip Maker Targets Growth with New VP Appointment
Northern, WI 04/22/2013 (GDPInsider) – Advanced Micro Devices, Inc. (NYSE:AMD) is trading down 0.20% today despite announcement of a new appointment. Joining the company is 44 year-old visionary engineer, Raja Koduri. His appointment comes as AMD tries to push for relevancy and the Koduri’s credentials as a world-class engineer in and thought-leader is expected to give AMD a boost in the coming months.
Koduri will report to Mark Papermaster, the senior VP and chief technology officer but more importantly the company is expecting him to hit the ground running and develop innovative offerings in the company’s accelerated computing division. Speaking about AMD’s prospects in the visual computing space, Papermaster highlighted the importance to Koduri’s appointment: “Raja brings exceptional vision and strength to AMD’s world-class engineering leadership team. Given his past record of success, Raja will help AMD lead the way in visual and accelerated computing and ensure we continue developing the industry-leading graphics IP that forms the foundation for our future growth.”
The appointment hasn’t quite seeped into investor consciousness it seems and share in AMD continue to hover below the $3 mark. Incidentally there’s heavy talk among analysts that options traders are looking to push the stock to $3 a share. Analysts cite sharp move last Friday when the stock’s January 2014 3-day strike call presented itself favorably as a contract.
AMD’s earnings report last week beat Wall Street estimates but the stock took a hit after rival Intel presented warnings signs. AMD it seems is inextricable linked in the minds of investors with Intel. This link is leaving many to wonder if the chip maker can complete the 3-step turnaround laid out by executives. The strategic plan which more or less is devised to keep AMD afloat involves restructuring and reducing operating costs. The other two prongs of the plan involve returning to profitability by sticking to the company’s product roadmap and a measured expansion into new markets.
In the last 12 months AMD has lost more than 70% off its share value and many question whether it’s the end of the line for the chip maker given the emergence of mobile phones and tablet computing. Only time will tell if Koduri can deliver on expectations.
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