The Zacks Analyst Blog Highlights: Advanced Micro Devices, Qualcomm, Texas Instruments, Intel and NVIDIA
CHICAGO, Nov. 8, 2011 /PRNewswire/ — Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Advanced Micro Devices Inc. (NYSE: AMD), Qualcomm Inc. (Nasdaq: QCOM), Texas Instruments Inc. (NYSE: TXN), Intel Corp. (Nasdaq: INTC) and NVIDIA Corp (Nasdaq: NVDA).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
AMD to Cut 10% of Its Workforce
Advanced Micro Devices Inc. (NYSE: AMD) plans to eliminate 10% of its workforce or about 1,400 jobs in order to reduce operational costs. This layoff is an attempt by AMD to optimize its cost structure and thereby improve its competitiveness.
The workforce reduction is expected to be over by the first quarter of 2012 and will be conducted globally across all its divisions. Along with other unspecified operational changes, the layoffs are expected to save $200 million in 2012.
Management is looking to reinvest some of the savings into newer business areas, including chips for devices such as tablet-style computers in emerging markets and Internet-related opportunities (mainly cloud computing).
Advanced Micro has been suffering from the slowdown in the global PC market plus the delay in important new chips due to manufacturing hiccups this year. The company’s third-quarter sales of $1.69 billion missed its guidance of a 10% sequential increase after Globalfoundries Inc. couldn’t supply enough of Advanced Micro’s new laptop chips to meet demand.
Most of Advanced Micro’s business is in chips for PCs that don’t have a meaningful presence in smartphones and tablets. We believe that the weak computer market and the company’s failure to penetrate the new mobile device market have forced it to refine its cost structure.
After a weak second quarter, Advanced Micro made a modest comeback in the third quarter, with earnings of 13 cents a share beating the Zacks Consensus Estimate by 3 cents. Worldwide PC sales have been stagnant, while smartphones, tablets, and other mobile devices experienced strong growth. In order to stay ahead of its rivals like Intel Corp. (Nasdaq: INTC) and NVIDIA Corp (Nasdaq: NVDA), we believe Advanced Micro would need to enter these emerging markets.
AMD shares currently carry a Zacks Rank of #3, implying a Hold recommendation in the short term (1-3 months).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.