Advanced Micro Devices' new chief executive was praised by Wall Street analysts for his aggressive plan to fight bigger rivals and tap new opportunities, but lack of details left them cautious.
Rory Read, who took over as CEO in August, said on Thursday the chipmaker would leverage its PC chip technology to attack the fast-growing tablet segment as well as the emerging markets, but stay away from the smartphone segment.
AMD is well positioned to benefit from the tablet boom as it has expertise in developing power-efficient chips and has a traditional focus on emerging markets, Canaccord Genuity analysts wrote in a note. They expect the company to gain shares in mainstream notebook and server markets.
We left with greater conviction regarding the company's ability to execute, both for manufacturing (fewer foundry misstep going forward) and design (zealously focusing on growth opportunities), they said.
Some analysts, however, felt AMD should have been more forthcoming with details of its plans.
What is clear is that AMD intends to take a fresh approach. But we did not hear enough detail about the company's strategy to enable us to get behind the stock as of yet, analysts at Susquenhana Financial Group said.
AMD shares, which have risen about 60 percent since September, were up 1 percent at $7 in early trade on Friday on the New York Stock exchange.
(Reporting by Rachana Khanzode in Bangalore; Editing by Sreejiraj Eluvangal)