SOURCE: The Bedford Report

The Bedford Report

October 15, 2010 12:35 ET

Microchip Makers Posting Profits Despite Weak Consumer Demand

The Bedford Report Provides Analyst Research on Advanced Micro Devices and Texas Instruments

NEW YORK, NY--(Marketwire - October 15, 2010) - After a poor start to 2009 prompted companies to reduce investment and cut production capabilities, surging microchip demand in 2010 has led to supply shortages as chip makers struggle to fill orders. Although performance in this industry is expected to be strong, inability to immediately increase production may limit the upside companies see in this industry as the microchip manufacturers are already operating at 96% of capacity. Even with investment in the semiconductor industry expected to increase by 84% this year, any increases in microchip production won't be realized for many months. The Bedford Report examines the outlook for companies in the Semiconductor - Broad Line Industry and provides research reports on Advanced Micro Devices, Inc. (NYSE: AMD) and Texas Instruments, Inc. (NYSE: TXN). Access to the full company reports can be found at:

Shares of AMD rose sharply in after hours trading yesterday after the company reported third quarter earnings of 15 cents a share not counting losses related to its factory spinoff -- well ahead of consensus analyst estimates forecasting earnings in the neighborhood of 6 cents a share. AMD has been driving growth over the last year by spinning off factories it couldn't afford into a separate entity called GlobalFoundries. This venture accounted for a $186 million non-cash loss.

The Bedford Report releases regular market updates on the Semiconductor - Broad Line Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at and get exclusive access to our numerous analyst reports and industry newsletters.

AMD's profit improved despite what the company's CEO Dirk Meyer called, "weaker than expected consumer demand" in the US and Europe. Analysts had been forecasting negative long term effects of the iPad on the PC industry. According to market research firms Gartner and IDC's estimates, worldwide PC shipments grew 7.6 percent during the quarter, well below its anticipated projection of 12.7 percent.

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