Tomahawk, WI 02/10/2014 (BasicsMedia) – Advanced Micro Devices Inc (NYSE:AMD) remains quite unconvincing to many investors. AMD should by now have proven that it is a worthy investment and gone out of its way to win back investor confidence. However, everything it does just highlights the fact that any investor who opted to keep off from AMD made a wise decision. Somehow, AMD has to find a way to appease investor anger, and prove to them that they made a bad decision when they decided not to pour their money into the company. How can this be true for a company that reports profits?

The general trend and rule is that a company that posts profits for consecutive quarters is often in good hands and a worthy investment. Advanced Micro Devices Inc (NYSE:AMD) has just posted its second profit in two consecutive quarters. Now, that would be more than adequate to prove to investors that it will give them good returns on investment. Therefore, why is the situation different with Advanced Micro Devices Inc? The reason for this existing thought or line of thinking among investors is the belief that AMD is just a couple of quarters away from facing serious liquidity problems.

It is not too often that a company discovers that it has to do more than just reporting profits on a consistent basis. In this case, Advanced Micro Devices Inc (NYSE:AMD) has to address its liquidity situation, and offer investors the assurance they need that this will not be a huge problem. Secondly, AMD has to prove that it has better CPU products and solutions compared to Intel. Similarly, the company needs to prove to investors that it will remain ahead of NVIDIA in the GPU markets. Analysts believe that AMD lacks the capacity to maintain a long-term competition with the likes of Intel and NVIDIA.

In the meantime, Advanced Micro Devices Inc (NYSE:AMD) has said that it will focus more on seeing that the sale of semi-custom as well as embedded items will increase in the short-term. This will give it breathing space for the short-term, but AMD needs to remember that investors are more concerned with its long-term outlook than anything else. Most investors are hoping to reap good short-term benefits, but when thinking of long-term prospects, they choose other companies and not Advanced Micro Devices Inc. AMD has to address such matters and win back investor confidence for the long-term.

Advanced Micro Devices Inc (NYSE:AMD) may achieve the success it craves in terms of increasing the sale of semi-custom and embedded chips. What it has to tackle while doing this, is the issue of lower margins obtained from semi-custom and embedded chips. AMD’s operating expenses are huge, and the low margins it enjoys from sale of these products will not cover such. The company’s top executives appear to be pleased with the direction AMD has taken to complete the turnaround. The company’s revenue growth is due to the recently launched PlayStation 4 and Xbox consoles.

Currently, investors continue to shun Advanced Micro Devices Inc (NYSE:AMD) in preference for other stocks. How far this will continue remains to be seen, although the trend does not show that this can change any time soon, not unless AMD improves its business massively.

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.