The stock of Advanced Micro Devices, Inc. (NASDAQ:AMD) has declined by a whole 66%, which has had many investors raising various questions. Advanced Micro Devices, Inc. (NASDAQ:AMD) has its operation all across the globe, and is a renowned manufacturer of microprocessor. However, the company produces a number of other products as well, for example embedded processors, motherboard chipsets as well as graphic processing units.
Previously, Advanced Micro Devices, Inc. (NASDAQ:AMD) had relied on the sales of its microprocessors for 90% of its sales, however, the company was adversely effected as the PC shipments hit their highest levels in 2012. This was further aggravated by the increasing industry of low cost PCs as well as tablets. This situation provided companies like Intel Corporation (NASDAQ:INTC) to advance their interests, by making investments in developing better solutions for the emerging problems, which also has better pricing power. Furthermore, investors are reconsidering their money’s worth in the company owing to this uncertainty.
However, one important factor which determines the future prospects of Advanced Micro Devices, Inc. (NASDAQ:AMD) is whether the company will be able to increase its market share with increase in sales. Throughout 2014, Intel Corporation (NASDAQ:INTC) successfully grabbed the majority market share of tablets, with delivering as many as 46 million chips. However, what is overlooked is that Intel Corporation (NASDAQ:INTC) has made negative revenue throughout its last quarter, with the loss of $4 billion in the year.
The management if Intel Corporation (NASDAQ:INTC) has claimed that with the contra revenue incentives, the company will be able to reduce the revenue depreciation. On the flip side, Advanced Micro Devices, Inc. (NASDAQ:AMD) still has the opportunity to get its share back with increased sales along with better earnings. The company has announced the plans that it has regarding the next generation of APU, more particularly the Carrizo which is an improved version of the Bulldozer architecture. This had also offered an alternate to the Kaveri processing unit of Advanced Micro Devices, Inc. (NASDAQ:AMD). Carrizo is going to be priced in a way which would help the company get its market share back. However, the Core series of Intel Corporation (NASDAQ:INTC) still has a lot of potential to give tough time to the products of Advanced Micro Devices, Inc. (NASDAQ:AMD), especially because the company offers its products at midrange prices.
The system architecture manager of Advanced Micro Devices, Inc. (NASDAQ:AMD), Linglan Zhang has stated that the company has been developing a 300W 2.5 GPU SoC. It is further rumored that this new GPU is with reference to the most power GPU by Advanced Micro Devices, Inc. (NASDAQ:AMD), R9 380X. A competitor, NVIDIA Corporation (NASDAQ:NVDA) offer a substitute, GTX 980, which takes up 165W. However, with the 300W of R9 380X, the customer will be able to get an even better experience. Furthermore, Advanced Micro Devices, Inc. (NASDAQ:AMD) can take advantage from the hype which is created by the expected launch of R9 380X, and also increase its profits in 2015. With the company trying to do better in the mobile as well as tablet segment, it can prove to be a good investment in the long run.
