Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) [Detail Analytic Report] moved up 0.82% in early trading session on Friday as with the diminishing PC market, Advanced Micro Devices as well as its rival and Intel (NASDAQ:INTC) are feeling the pain. Worldwide PC shipments declined 9.8% in 2013, 2.1% in 2014, and 10.4% in last year, driven by a combination of factors including the growth of mobile devices and the failure of Windows 10 to trigger an upgrade cycle. This year isn’t off to a better start, with worldwide PC shipments tumbling 11.5% year over year during the Q1.
AMD as well as Intel are still dependent on the PC market, although both firms are working to change that. AMD has established its semi-custom chip business, with its SoCs powering the major game consoles, and the firm intends to make a run at the server chip market in 2017 with its upcoming Zen CPUs. Intel dominates that market, with the firm’s server chip business acting as a source of growth and outsize profits, partially offsetting PC-related weakness.
AMD has more upside potential, but the firm needs to deliver with its upcoming product revealing, something it’s had problems with in the past. Intel has an attractive valuation assuming earnings don’t drop, but the firm is facing major obstacles as PC sales slump and its efforts in mobile fizzle. AMD has the potential to rise, but it also has the potential to crash and burn if Polaris and Zen come up short. For most investors, Intel looks like the better buy, despite the myriad issues facing the firm.
SunPower Corporation (NASDAQ:SPWR) [Detail Analytic Report] announced its first quarter loss of $85.4 million. The California-located firm reported that it had a loss of 62 cents a share. Commenting on the first quarter results president and CEO of SunPower, Tom Werner stated that their results in the period reflect solid execution against their long term strategy. With the recent launch of their Helix and SunPower Equinox complete solutions for the commercial and residential markets respectively, they are now in a position to offer standardized plug and play solutions across all primary solar applications from large scale power plants to individual homes and businesses. This positions the firm very well to facilitate the adoption of solar power as a mainstream energy technology.
SunPower declared revenue of $433.6 million in the quarter, beating Street forecasts. According to Zacks, analysts have expected $324.8 million. For the current quarter completing in July, SunPower reported that it expects revenue in the range of $310 to $360 million. Analysts polled by Zacks had expected revenue of $780.1 million. SunPower expects full-year revenue in the range of $3.2 to $3.4 billion. Shares of SunPower have declined 43 percent since the starting of the year.
Werner added in their upstream solar cell and panel manufacturing operations, they delivered strong yields and record panel output, and they continue to ramp volume at their new Fab 4 cell manufacturing facility. During the period, they also started commercial shipments of their new, lower cost, high efficiency Performance Series panel product line and they are on track to ramp volume significantly starting in the Q3.
Chief financial officer of QLogic Corp. (NASDAQ:QLGC) [Detail Analytic Report] commented after the firm released fourth quarter results that he is very pleased with their financial performance during the period and their strong finish for the second half of fiscal 2016. For the second quarter in a row, they delivered both revenue and non-GAAP earnings per diluted share above the high end of their guidance range. Looking ahead, they will continue to focus on improving operational execution to provide intelligent high performance connectivity solutions across both enterprise and cloud data centers.
QLogic posted net income of $18.2 million in its fiscal fourth quarter. Qlogic reported that it had net income of 22 cents a share. Earnings, revised for one-time gains and costs, came in 30 cents a share. The results topped Wall Street estimates. The average estimate of experts polled by Zacks Investment Research was for earnings of 25 cents a share.
QLogic declared its fourth quarter revenue of $119.4 million, also surpassing Street forecasts. According to Zacks, analysts have expected $116.9 million. For the year, the firm declared net income of $46.5 million, or 54 cents a share, swinging to a profit in the quarter. Revenue was revealed as $458.9 million. For the current quarter completing in July, QLogic expects its earnings to be 23 to 27 cents a share.