Advanced Micro Devices (AMD) competes with Intel (INTC) and Nvidia (NVDA) in the PC microprocessor and graphics businesses. Our price estimate for AMD stands at $9.30, which is roughly in line with market price. We estimate that although most of the company's value comes from microprocessor business, about 14% can be attributed to graphics.
One of the recent wins in this regard was Apple's (AAPL) plan to use AMD's graphics cards in its Macbook Pro notebooks. What does this tell us about AMD?
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