Advanced Micro Devices may bounce back with new servers: Barron's
(Reuters) - Prospects are looking better for Advanced Micro Devices Inc, the No. 2 maker of microprocessors for personal computers whose revenue fell sharply last year, as computer servers acquired last year in its purchase of tiny startup company SeaMicro bolster results, Barron's said.
"SeaMicro offers AMD a chance to take share in the mainstream server-computer market, in which Intel sells about 96 percent of the chips," Barron's said, citing industry data. "SeaMicro's technology looks good; its management team, astute; and the market opportunity, promising."
Barron's said Dan Niles, an investor with AlphaOne Capital Partners, believes AMD shares could double to over $8 by 2015 if company revenue grows to $7 billion and other sales measurements improve.
Company revenue fell 17 percent last year to $5.4 billion, following gains in 2010 and 2011, Barron's said. Recent results were hurt by weakening sales of personal computers and strong demand for Intel's Xeon line of server chips, the newspaper said.
(Reporting by Ransdell Pierson; Editing by Theodore d'Afflisio)
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