AMD signs deals with EA for exclusively optimized games

[deadrats]

some time ago i posted about AMD getting the contracts to supply the APU's for the next generation of console games, both XBOX and PS4. at the time AMD stock was $2.41 and i said it was a buy, as i believed AMD bonds were. a few offered the opinion that AMD stock wasn't going anywhere, regardless of any deal they signed.

after thinking about it for a day, i decided to pick up 1000 shares of AMD and checking today AMD is at $4.14. so what? am i bragging? nope, i'm here to tell you guys that i think AMD is still a buy and here's why:

http://techreport.com/news/24976/refuted-bf4-other-frostbite-3-games-to-be-optimized-e...sively-for-amd

AMD signed a deal with EA that calls for EA to optimize all games based on it's Frostbite 3 engine EXCLUSIVELY for AMD cpu's and gpu's.

this is a major win for AMD in more ways than the obvious: not only will EA's triple A titles run faster on AMD's hardware on the desktop but more importantly they will run like stink on a monkey on the next gen consoles, thereby making said consoles an attractive gaming option compared to a high end gaming pc and driving sales of said consoles, which means more Jaguar APU's sold.

i give AMD about 3-5 years before they are well in the black again and flush with cash. i see AMD stock going to over $10 a share within a couple of years, if not sooner, with healthy dividends.

i'm getting ready to put some more cash in their stock, if any of you guys have a few grand to spare, you should seriously consider picking up some shares, AMD stock is seriously undervalued at the moment, i think they are a safe investment.

edit: i ran across this:

http://www.xbitlabs.com/news/graphics/display/20130618193824_Nvidia_Set_to_Radically_C...to_Others.html

NVIDIA has announced that they are radically altering their business model, seeking to become a licensing company. some of you may remember that when SB first came out i predicted that NVIDA would be out of business within 5 years, i was forced to backtrack somewhat when Intel a 5 year deal with them for a few billion dollars (i don't remember the exact amount).

maybe the 5 year time table for NVIDIA's demise was too optimistic but i think the ghosts of 3DFX are rearing their heads and the handwriting is on the wall.

now don't get me wrong, i don't want to see NVIDIA go under but i think their destined to go the way of the dodo, at least as far as their desktop graphics cards are concerned.

[DarrellS]

I think most people knew a couple years ago that AMD was more interested in getting into the video game console market than trying to compete with Intel which owns almost 75% of the CPU market. I don't see AMD knocking NVIDIA out of the graphics card market either. NVIDIA owned 45% of the video card market last month while AMD/ATI owned 34% and three of the top four graphics cards are NVIDIA cards.

AMD was smart to get into the gaming console market because it is what will keep them in business since they can't compete with Intel in the CPU market.