Stock Thoughts: AMD

Advanced Micro Devices has come a long way from playing alongside Cyrix in the Intel clone market. As a chipmaker for PCs, they've gone from making cheap, discardable processors to exceeding Intel at its own game. The latest 64-bit chips for the desktop and the Opteron chips for the server have contributed to AMD outpacing Intel in the market. Additionally, Sun Microsystems jumped on the AMD bandwagon in a big way and has vaulted from nowhere to number 6 in the Intel-based server market.

So the big question is, why is the stock going down? Simple answer, it ran up too far and Intel warned recently. I'll be looking for a bounce off of obvious support levels before the end of the year.