Tomahawk, WI 10/23/2013 (BasicsMedia) – The last two quarterly financial reports announced by Advanced Micro Devices, Inc. (NYSE:AMD) have not been positive. AMD’s stock has suffered great losses because of the negative earnings report the company has issued in the last two quarters in a row. While the company has posted revenues in the last two quarters that have been above industry expectations, I call the general results negative because of one factor that AMD relies on heavily; PC sales. AMD needs to change its business model if it is to avoid the full brunt of declining PC sales.

AMD Has to Stop Overreliance on PC Sales

AMD relies more on PC sales to drive up its revenues every year. AMD’s products are quite cheaper in comparison to those produced by its main competitor, Intel. However, in terms of performance, Intel’s systems are the preferred choice globally. For individuals, organizations and businesses with little in terms of financial power, they are better off using AMD systems and not Intel. The only challenge for AMD is that it needs to address the issue of performance and popularity right across the world, where the consensus is that it ranks lowly compared to Intel

Intel vs. AMD

Intel’s drivers are quite easy to install, which is not the same case with regard to AMD. It is important to realize that customers seem to appreciate the standard performance they have come to expect from all Intel products. This is bad for AMD, where the consensus is that it has not developed standard performance for all its products and this is making it lose a lot of revenue. Intel’s graphic acceleration is also much better than that of AMD. These simple things are preventing AMD from seeing growth in terms of revenue collection or sustainable profitability.

However, there are areas where AMD is preferred over Intel. An example is that its graphic acceleration is better than Intel’s, which is good. If you need systems that are of the highest quality and give you the highest speeds, AMD should be the first name you look for.  On the other hand, Intel systems are the best in terms of serving purely business-related needs. AMD also needs to invest more in marketing to create better brand awareness, in the same way that Intel has done to improve its popularity all over the world.

AMD Has to Increase its Investments in Marketing

I believe that if AMD invests more in marketing, it will see incredible growth in its market cap and market share. AMD is still quite good when talking about OC potential, and is higher than that of Intel. It is time for AMD to look at the areas where it is better than Intel and use these to market its products, systems and solutions all over the world. Perhaps the most important action it can undertake is to stop the overreliance on PC sales, since they are declining by the day and are being replaced by smaller gadgets such as tablets and Smartphones.

AMD is not at the end of its ropes. It offers cheaper alternative to Intel but it has to evolve with the market and the rest of the industry lest it is rendered irrelevant going forward.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.