Advanced Micro Devices (AMD, news, msgs) seems a close match. The company has been adding new customers for its top of the line Athlon chip. For example, in March IBM (IBM, news, msgs) designed the Athlon into its line of network servers. And Advanced Micro Devices continues to pick up share from Intel (INTC, news, msgs). In the March quarter, Advanced Micro’s market share increased to 22%, up from 17% in the previous quarter. With new products rolling out for desktops and laptops, it looks like Advanced Micro Devices can keep the momentum going, too. The stock was up 70% in the period from April 6 through May 22, so it has the kind of upside momentum that I’m looking for in a replacement for RF Micro Devices. And even if I use the $1.37 a share in earnings that Merrill Lynch’s Joe Osha recently projected for 2001, after he slashed his estimates on the stock for the year, Advanced Micro Devices is still only trading at a price-to-earnings ratio of 24. With the end-of-year uptick in PC sales still ahead of us, I think this is a good stock to rotate into. In fact, even though I'm still waiting to sell RF Micro Devices, since I've got some cash in the Jubak's Picks portfolio I'm going to add Advanced Micro Devices to Jubak’s Picks with this column since the market has weakened going into the holiday weekend.
Full article moneycentral.msn.com
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