Advanced Micro Devices, Inc. (NASDAQ:AMD) announced the company has received the Catalyst Award for its 25×20 energy efficiency initiative, presented by the Green Electronics Council (GEC) after review by an independent panel of judges. The award will be formally presented at the Electronics Goes Green 2016 conference in Berlin on September 7, 2016. AMD is ahead of pace to achieve its ambitious goal to dramatically improve the energy efficiency of its mobile microprocessors 25 times by year 2020, from a 2014 baseline.
“AMD clearly stood out among a strong group of finalists in their ability to catalyze large scale sustainability impact,” said Nancy Gillis, chief executive officer, Green Electronics Council. “Bringing a new architecture and energy management to computer chips will have a huge impact on managing energy use and reducing greenhouse gas emissions, yet another example of technology’s fundamental role in building a sustainable world.”
As part of its 25×20 initiative, AMD is developing new processor architectures, power efficient technologies, and power management techniques to achieve the goal of accelerating energy efficiency of its processors. As an example, the AMD 6th Generation A-Series Accelerated Processing Unit (APU) (code-named “Carrizo”) released in 2015 for notebook computers, delivered a 2.7 times improvement in energy efficiency compared to its 2014 predecessor.i This improvement set a pace well ahead of the trend line for achieving the 25×20 goal. Also, the AMD 6th Generation A-Series APU achieved an approximate 46-percent reduction in lifecycle carbon emissions compared to the previous generation APU.ii Further demonstrating AMD’s commitment to energy efficient computing, the new Polaris architecture-based Radeon™ RX 400 Series GPUs can be up to 2.8 times more energy efficient than graphics cards made just two years ago.iii
“As always, there is extreme competitive pressure in the computer market for new processors that provide even greater performance while minimizing power consumption,” said Mark Papermaster, SVP and chief technology officer, AMD. “This is made more challenging due to the slowdown in Moore’s Law. As the energy efficiency gains that were always a byproduct of manufacturing advances slow down, AMD engineers are creating innovative new designs aimed at managing energy use, and that is fueling our drive to 25×20.”
GEC’s Catalyst Awards seek to inspire innovation in the design, manufacture and use of electronics to advance global sustainability. The “Catalyzing Impact at Scale” Award recognizes the large-scale impact that leading corporations can have when changing the design, manufacture and intended use of their products. The judges’ comments included: “I believe that there’s a shift in technology [with 25×20] that maybe exceeds Moore’s Law and causes a shift in computing success.”
“Continued advances in health care, university research and other areas rely on greater performance in computing and visualization technologies,” said Susan Moore, corporate vice president for public affairs, AMD. “As AMD designs processors that help meet those needs, we’re focused on minimizing the environmental impact of our products. Consequently, we set out a couple of years ago with an ambitious initiative to dramatically improve the energy efficiency of our processors. The results of this work are now appearing and we could not be more pleased with our progress. We are honored to receive this award from the Green Electronics Council for our approach and work to date.” (Original Source)
Shares of AMD are down nearly 5% to $6.97 in early trading Wednesday. AMD has a 1-year high of $8 and a 1-year low of $1.65. The stock’s 50-day moving average is $6.81 and its 200-day moving average is $4.42.
On the ratings front, AMD has been the subject of a number of recent research reports. In a report issued on September 1, Mizuho analyst Vijay Rakesh reiterated a Hold rating on AMD, with a price target of $7.00, which represents a slight downside potential from current levels. Separately, on the same day, Jefferies’s Mark Lipacis maintained a Buy rating on the stock and has a price target of $9.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vijay Rakesh and Mark Lipacis have a total average return of 28.2% and 22.1% respectively. Rakesh has a success rate of 71.5% and is ranked #15 out of 4147 analysts, while Lipacis has a success rate of 79% and is ranked #9.
Overall, 6 research analysts have rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 4 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 $5.80 which is -21.0% under where the stock closed yesterday.
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. The company 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.