AMD: Finally Some Good News

Advanced Micro Devices (NYSE:AMD) reported net income that nearly doubled in Q1 as the computer industry benefits from strong corporate demand.

The company is still without a permanent CEO after forcing out Dirk Meyer in a surprise move in January.

(www.mercurynews.com) AMD is the No. 2 maker of PC processors, with about 20 percent of the worldwide market. Its results help underscore a broader trend in technology spending: Companies' spending on PCs is perking up, and their interest in other kinds of computers -- from tablets to mainframes -- is also on the rise.

Although the company's results topped expectations, the reaction on Wall Street was subdued. AMD has for decades existed in the shadow of its larger rival Intel (INTC) and is often squeezed on prices and has trouble finding new ways to expand business.

One potentially worrisome sign: AMD's prices for processors, the "brains" of PCs, declined from last quarter, while Intel's prices increased. Intel reported its results earlier this week.

And the prices for AMD's graphics chips, which are used for rendering video and other visually intense jobs that general purpose microprocessors aren't as good at, also fell. 

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SOURCE: http://www.mercurynews.com/business/ci_17901993?source=rss&nclick_check=...