Advanced Micro Devices, Inc. (NASDAQ:AMD) announced it has acquired intellectual property (IP) and key engineering talent from Nitero, a pioneer in millimeter wave solutions capable of enabling future generations of wireless Virtual Reality (VR) and Augmented Reality (AR) headsets. The acquisition provides AMD with a broader portfolio of IP capable of enabling VR headset and solution providers with key technology required to create more immersive computing experiences.
“Unwieldly headset cables remain a significant barrier to drive widespread adoption of VR,” said Mark Papermaster, AMD chief technology officer and senior vice president. “Our newly acquired wireless VR technology is focused on solving this challenge, and is another example of AMD making long-term technology investments to develop high-performance computing and graphics technologies that can create more immersive computing experiences.”
Nitero has designed a phased-array beamforming millimeter wave chip to address the challenges facing wireless VR and AR. Using high-performance 60 GHz wireless, this technology has the potential to enable multi-gigabit transmit performance with low latency in room-scale VR environments. The beamforming characteristics solve the requirement for line-of-sight associated with traditional high-frequency mm-wave systems, potentially eliminating wired VR headsets and enabling users to become more easily immersed in virtual and augmented worlds.
“Our world class engineering team has been focused on solving the difficult problem of building wireless VR technologies that can be integrated into next-generation headsets,” said Nitero co-founder and CEO Pat Kelly who has joined AMD as corporate vice president, Wireless IP. “We are excited to play a role in furthering AMD’s long-term technology vision.”
Shares of AMD are currently trading at $13.35, down $0.17 or -1.25%. AMD has a 1-year high of $15.55 and a 1-year low of $2.60. The stock’s 50-day moving average is $13.93 and its 200-day moving average is $10.45.
On the ratings front, AMD has been the subject of a number of recent research reports. In a report issued on April 6, Goldman Sachs analyst Toshiya Hari initiated coverage with a Sell rating on AMD and a price target of $11, which represents a potential downside of 19% from where the stock is currently trading. Separately, on the same day, Canaccord’s Matt Ramsay reiterated a Buy rating on the stock and has a price target of $17.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Toshiya Hari and Matt Ramsay have a yearly average return of 13.4% and 21.3% respectively. Hari has a success rate of 63% and is ranked #1030 out of 4560 analysts, while Ramsay has a success rate of 67% and is ranked #55.
Overall, 2 research analysts have rated the stock with a Sell rating, 9 research analysts have assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $12.47 which is -8% under where the stock closed last Friday.
Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. It operates through the following segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop, notebook processors, chipsets, discrete GPUs and professional graphics. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties.