2-Star Stocks Poised to Plunge: AMD?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, embattled chip maker Advanced Micro Devices (NYS: AMD) has received a distressing two-star ranking.

With that in mind, let's take a closer look at AMD and see what CAPS investors are saying about the stock right now.

AMD facts

Sunnyvale, Calif. (1969)

Market Cap

$1.9 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$6.4 billion

Management

CEO Rory Read (since August 2011)

Interim CFO Devinder Kumar (since September 2012)

Return on Capital (average, past 3 years)

2.6%

Cash/Debt

$1.6 billion / $2.0 billion

Competitors

Intel (NAS: INTC)

IBM (NYS: IBM)

NVIDIA (NAS: NVDA)


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 18% of the 3,739 members who have rated AMD believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, GenFrogKing, touched on the competitive headwinds working against AMD:

Why would anyone pick an AMD chip over an Intel [Ivy Bridge] or even [Sandy Bridge] chip? Intel is unparalleled in its ability to service personal computers. Plus in the near future, Intel will be releasing its Haswell CPUs for many mobile devices including Tablets. AMD is simply way behind the game here.

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The article 2-Star Stocks Poised to Plunge: AMD? originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of IBM and Intel. Motley Fool newsletter services recommend Intel and NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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