What happens when even Advanced Micro Devices, Inc. (NYSE: AMD) predicts that the personal computer market is improving this year and also in 2013? Intel Corporation (NASDAQ: INTC) recently reiterated its same guidance last week as it did with earnings a month ago, and the hype is out there for Windows 8 from Microsoft Corporation (NASDAQ: MSFT) being the key growth driver.
What is interesting is that this is all taking place when Apple Inc. (NASDAQ: AAPL) has been a huge disruption force. Mac sales have grown, but the iPad has been the true disruption as consumers are flocking to the tablet for casual web use and media use and keeping older desktops and/or laptops to use for more heavy issues.
This morning at the J.P. Morgan Global Technology, Media and Telecom Conference came word from AMD’s CEO Rory Read that demand is picking up in the personal computer space. The pickup was said to be for both 2012 and for 2013, although that is a company prediction. He even went on to note that the personal computer market will have a single-digit rise this year and that the growth will be back-end loaded for the second half of this year.
The strength is based upon AMD’s Trinity processors for laptops after many key design wins. AMD shares are up only $0.04 at $6.79 against a 52-week trading range of $4.31 to $8.73 and its market capitalization rate is $4.76 billion.
Now the company just has to go out and execute on its strategy. Unfortunately, that has always been the hard part for AMD to maintain and that is regardless of the PC sales climate.
JON C. OGG