According to the beancounters, all this feel good positive outlook reflects AMD's prospects for improved operating performance and cash generation.

Apparently AMD’s improved product portfolio will let the company compete in the current discrete GPUs (graphics processing unit), APUs (application process units), x86 and ARM CPUs (central processing unit) market.

“Although we expect ongoing revenue declines and operating losses in its PC-related business (microprocessors and graphics chips), the growing EESC (enterprise, embedded, and semi-custom) business supported by the reported design wins, we project break even to modest profitability beginning in the second half of 2016,” a Moody person said.

Some of that is because Moody's expects the company will significantly reduce a combination of borrowings under its asset based lending facility as well as senior unsecured notes.

However, despite these ongoing competitive challenges, AMD has made progress over the last few quarters in terms of design wins and market share gains, which Moody’s thinks will contribute to improved performance over the next year, including operating profitability and modestly positive free cash flow.

“ We project steady to slightly higher revenue in 2016 and 2017 with operating profit developing over the next year as profitable growth in the semi-custom business offsets the moderating losses in the company's personal computer related microprocessor and graphics chip segment,” the Moody person sulked.

The outfit was impressed by AMD’s three large design wins worth approximately $1.5 billion over three to four years, it should let the company to modestly build revenue beginning in the second half of 2016 and offset losses in the rest of its business.

AMD has good liquidity with $957 million of cash and marketable securities as of June 25, 2016 (88 percent held domestically).