AMD is on the verge of a turnaround

The cocaine nose jobs of Wall Street are suddenly warming to AMD again as many start to believe it might be making gains at Intel’s expense.

24/7 Wall Street  has focused on nine stocks that could double in 2014, and AMD was on the list. This ignored the fact that AMD has managed to disappoint for years and much of the potential gains discussed are dependent on Intel cocking up.

Things started to pick up after AMD CEO Rory Read made an appearance on CNBC’s Fast Money on Thursday. He was supposed to talk up the lesser importance of AMD’s PC market – after all anyone who says PCs have a future are automatically cursed.

Read talked up building long-term strategic relations via winning both platform processor and graphics wins for the Xbox One and PS4. Creating a broader reach in servers and embedded systems is a move as well. Apparently, investors liked the cut of his jib and the fact he appeared to be saying that AMD is migrating away from PCs. However, there was good news on this front too. It appears that AMD might be taking away market share from Intel in the “cheap and cheerful” range.

While PC sales remain weak, a one percent or two percent gain in total market share against Intel represents a huge revenue gain for AMD.

To be fair, though, predicting that AMD shares could double this year is a no brainer. AMD shares were trading at $3.48 which is so low that even a modest rally would lead to a doubling of value.