Boston, MA 10/16/2013 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD),having a market cap of approximately $2.89 billion, appear to be attractive in both the long term as well as short term equally. AMD is in a state where it is drawing lots of attention because of the incredible growth potential it offers. Due to drop in usage of personal computers, AMD is quick on gearing itself up to diversify its products which could bring about a radical growth to the IT industry. AMD has effectively entered the competitive edge after it has finalized its deal with Verizon Communications Inc.(NYSE:VZ), one of the major competitors in the telecommunications industry globally.
Apparently, Verizon has also made it public that it will be using AMD’s SeaMicro Servers for their upcoming cloud computing solutions. As per the reports, the global spending on cloud computing solutions is forecasted to touch around $107 billion point, which is more than double of what it will be in 2013. The spending for the year 2013 is expected to be $47.4 billion across the globe. If the growth in Cloud computing industry is to be predicted then the reports see about 23% surge in the growth of the industry as against the much slower growth of the combined IT industry’s which is expected to be only around 5%.Verizon’s decision is seen as a positive stimulus on the company’s sales and resultantly on the profits generated from the revenues. This deal could benefit AMD in its long term growth and will also influence the tech industry as whole.
Basing views on the factorslike AMD’s deal with Verizon and the company’s plans of new innovative products in the pipeline, future prospects look encouraging. At the moment, AMD’s efforts are expected to reflect in its revenues for October 2013, but the company still has an impending task to consolidate its debt in order to maintain the upbeat it has created in the market.