Advanced Micro Devices (AMD) Inc is putting up for sale its Austin,
Texas campus to raise cash, which analysts say is a positive move for
the chip giant.
AMD said it will sell and lease back its 58-acre
Austin, Texas campus for $150 million to $200 million. It hopes to
close the deal in the second quarter of 2013.
AMD has struggled with a weakening PC market, aggravated by an uncertain economy.
Early
this week, Chief Executive Rory Read said AMD is wrapping up a "perfect
storm" of a year, with a "choppy" business environment anticipated in
2013.
Problems arose mainly due to the introduction of mobile
gadgets like the smartphone and tablet, PCs have seen a strong decline
in sales.
"I think it's a smart move," Williams Financial analyst
Cody Acree said noting that AMD has to make investments as it faces "a
secular decline in the PC space".
Evercore Partners analyst
Patrick Wang said in a note that the move is "but a temporary fix,"
adding: "The quick cash fix would help alleviate management's current
cash crunch over the next two to three quarters."
AMD is currently
looking to sneak into other markets. In late October, the chip maker
announced it was making 64-bit ARM processors for multiple markets. It's
starting with its Piledriver Opteron 6300 Series, which will replace
the Bulldozer-equipped Opteron 6200 Series.