The Nintendo NX is predicted to be released sometime in 2016, and it is expected to be some pretty advanced technology that will make the Nintendo Wii U look like a vintage machine. Rumors have it that this latest console will include a processor built by Advanced Micro Devices, Inc. (NASDAQ:AMD). Surely much of this rumor is already priced into the company’s stock, but what exactly will happen if it is confirmed that AMD is building the processors?
Considering that Nintendo was able to sell 600,000 units of their Wii consoles in the first eight days after its release in the United States, the potential revenue for Advanced Micro Devices, Inc. (NASDAQ:AMD), should they be the ones to build the processors, is huge. The Nintendo NX is expected to greatly outsell the Wii and Wii U (sold 400,000 units in the first week), thus benefits for AMD are great if they do have the contract. If this is the case, we could see some stock increases in the near future.
The stock is up 1.54% or $0.04, hitting $2.96 per share. About 8.00 million shares traded hands. AMD has risen 28.07% since May 22, 2015 and is uptrending. It has outperformed the S&P500 by 30.33%.
From a total of 3 analysts covering Advanced Micro (NASDAQ:AMD) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $2.05 while the lowest target price is $2.0. The mean of all analyst targets is $2.03 which is -31.42% below today’s ($2.96) stock price. Advanced Micro was the topic of 3 analyst reports since August 13, 2015 according to the firm StockzIntelligence Inc. Vetr upgraded shares on September 22 to a “Strong-Buy” rating. Topeka Capital Markets initiated AMD stock in a recent report from August 13 with a “Hold” rating.
The institutional sentiment decreased to 0.63 in Q2 2015. It’s down 0.42, from 1.05 in 2015Q2. The ratio dropped, as 38 funds sold all their Advanced Micro Devices, Inc. shares they owned while 73 reduced their positions. 23 funds bought stakes while 47 increased their total positions. Institutions now own 293.84 million shares which is 8.23% less than the previous share count of 320.18 million in 2015Q2.
Shanda Payment Holdings Ltd. holds 9.11% of its total portfolio in Advanced Micro Devices, Inc., equating to 6.08 million shares. Mcglinn Capital Management Inc owns 91,600 shares representing 0.48% of their total US portfolio. Moreover, Two Sigma Securities Llc has 0.47% of their total portfolio invested in the company, equating to 174,607 shares. The New York-based Stone Ridge Asset Management Llc has a total of 0.32% of their portfolio invested in the stock. Chicago Equity Partners Llc, a Illinois-based fund reported 5.61 million shares owned.
Advanced Micro Devices, Inc. is a global semiconductor firm with facilities across the world. The company has a market cap of $2.36 billion. The Firm offers x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit , chipsets, discrete graphics processing units (GPUs) and professional graphics, and server and embedded processors, dense servers, semi-custom System-on-Chip (SoC) products and technology for game consoles. It currently has negative earnings. The Firm operates in two divisions: the Computing and Graphics segment, which includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics, and the Enterprise, Embedded and Semi-Custom segment, which includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties.