Advanced Micro Devices (NASDAQ:AMD) - Bears on Prowl Amidst Stellar Earnings Beat & New Product Launch

Bears on Prowl - Bulls Smell Opportunity 

Shareholders were left scratching their heads when, despite reporting operating income of $126 million (compared to an operating loss of $293 million a year ago), shares of Advanced Micro Devices (NASDAQ:AMD) tumbled 16% in two days on lower guidance. 

Today, the Company officially unveiled the new Ryzen 7 2700U and Ryzen 5 2500U Mobile Processors. In this article, we will examine the Q3 financial results and the new Mobile Processors.

The stellar Q3 financial report showed operating income of $126 million compared to an operating loss of $293 million a year ago, and operating income of $25 million in the prior quarter. As reported, Q3 revenue was $1.64 billion, up 26 percent year-over-year. Operating loss was $28 million compared with an operating loss of $363 million a year ago.

The market reaction to the Q3 results left many scratching their heads. 

Above: Market makers made an impressive stand today with 12 million shares traded around the 3-month support line of $12.00. 

Now, onto the new Ryzen Mobile Processors that were unveiled today. Boasting 44% more multi-threaded CPU performance and up to 161% more graphics performance, the Ryzen 7 2700U Mobile Processor is the fasted processor available for ultra-thin notebooks. AMD claims the Ryzen 7 2700U is so powerful it can outperform Intel's Core i5-7600K Kaby Lake desktop microprocessor with up to 58% less power consumption.

In the coming weeks, initial systems powered by Ryzen™ mobile processors are slated to be available from top manufacturers including Acer, Inc. (TPE:2353), HP, Inc. (NYSE:HPQ) and Lenovo (OTCMKTS:LNVGY), with further platform updates expected from Dell, Asus (TPE:2357) and other OEMs in early 2018.

In addition, AMD claims the new Ryzen mobile processors will be able to power today's most popular e-sports titles at the ideal benchmark rate, 1080p and 60 frames per second. This will eliminate the need for a dedicated mobile graphics card, lowering the price of the laptops while generating less heat and less power consumption.

Will this price be a bargain? The bulls certainly think so. And, as the saying goes, "With great tragedy comes great opportunity."