AMD Finds Itself In Financial Peril

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Forbes says that AMD could be in serious financial trouble and that investors are concerned AMD is spending too heavily to keep up with Intel. Stock has fallen sixty percent over the last year, wiping out about $10 billion in shareholder wealth.

Though the price competition has cut into both chip makers' profits, Wall Street has punished AMD's stock particularly hard. Its shares have plunged more than 60 percent over the past year on fears about the company's ability to continue gaining share without hurting profit margins. Meanwhile, Intel's stock is down just 4 percent.
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lol That's one way....:)

Not a bad time to buy some AMD styock if you have the stones.;)
 
I put about as much faith in analyists like Forbes as I do in MS with OSes. Seriously, these people have some very short term memory problems. Does K7 era AMD ring a bell for these morons? AMD was doing FAR worse then than they are now, still survived and actually thrived once the K8 hit the scene. My advice is to look for history to repeat itself once Barcelona aka K10 arrives, in other words, start buying AMD stock while it's low.
 
^ i did, and i hope you are right... i would feel sort of dirty putting an intel processor in my system. And while i could argue the market is different than in the k7 era, i think its true that they will come out of this... hence my stock purchase. The thing i really think holding them back is they need a new team at the helm.
 
When it takes seemingly forever to make good 65nm chips to compete with the core 2 duo and to release a directx 10 graphics card, then loosing money to competitors doesnt surprise me one bit. They arent competing. At all.

Ive always been an AMD user but frankly AMD deserves this ass kicking theyre getting, they havent brought anything to the table that even remotely competes with Intel or Nvidia. I'll be getting a core 2 duo when I upgrade my AGP video card to pcie, it will be my first Intel processor. If by some miracle the R600 actually gets released soon then I'll get one of those, but I dont see that happenning and my only choice is a 8800GTS despite how much I hate Nvidia and their drivers. AMD is basically forcing me to get Intel and Nvidia even though I dont want to.
 
Lots of people here equate AMD's health/future on the current state of their processor performance. Thats a big mistake, if you look at AMD's balance sheet they are in deep do-do with no way out unless they make a public offering of new shares and dilute the value of current shares.

Sell.
 
Lou Ceifer said:
I put about as much faith in analyists like Forbes as I do in MS with OSes. Seriously, these people have some very short term memory problems. Does K7 era AMD ring a bell for these morons? AMD was doing FAR worse then than they are now, still survived and actually thrived once the K8 hit the scene. My advice is to look for history to repeat itself once Barcelona aka K10 arrives, in other words, start buying AMD stock while it's low.
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Forbes magazine as whole is not comprised of morons. They are probably the best financial mag out there and they are not analysts. These analysts probably know more about AMD then you would ever want to know. Did you even read the article?

AMD's fall has wiped out about $10 billion in shareholder wealth. Analysts say the exodus will likely continue until the company rolls out its new chips this year and resolves fears about its dwindling cash reserves and high capital expenditures.
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http://www.forbes.com/feeds/ap/2007/03/09/ap3503028.html

They do mention the new rollout of new chips but one thing YOU didn't take into account is during the K7 era Intel was fucking up left and right and had horrible products. Right now Intel has excellent products and are on a torrential pace with technology. Much different.

You should read the article first before calling anyone morons. It is a good and LONG article. Not a knee jerk reaction like ...
 
The truth is AMD as good as they are in the engineering department as it stands right now the future is bleak. Intel is rolling out all kinds of great products and has some more in the pipeline. It's very hard for AMD to match the speed at which Intel is rolling right now. Come to think of it, they are actually playing catch on 2 fronts. The video market is slipping away from them and nVidia is very aggressive with no sign of slowing down.

Funny, if you look at both nVidia and Intel they seem to have adopted the same strategy. They both released overly powerful products which 2 years ago would have been introduced more progressively. They are in for the kill.

I hope AMD comes back strong. Competition gave us the Core 2 Duo at these great prices. With little competition left Intel and nVidia would procrastinate. In any case, the article is a bit on the pessimistic side. I believe AMD has made great progress through the years specially in the OEM & server market.
 
AMD has a huge market share compared to back in 98 or so.

alot has changed, its not like AMD will dissapear, they just bought ATI, which imo was a good decision. They have more contracts now then they ever did before.

You guys gotta be positiv, if AMD goes down, and INTEL becomes 99% market share, you do know what prices will be like dont you???? Doesnt anyone here remember how high chip prices were back in the day?

I would give them a year before they get all set up and start stomping some ass again. In the meantime, watch there stock price, and begin buying up cheap shares.
 
Looks like trying to beat Intel on the pricewar front might not have been such a hot idea .At least ATI kept their prices at reasonable levels to keep some of the profits rolling. I guess hindsight is 20/20 ,lots of people predicted that with the massive price cuts Amd was going to clean up on Intel .But nowdays it seems people aren't so desperate to go for the cheapest in the range anymore.
 
AMD stock is worth less than when it was worthless...Hah

Sucks tho.. I Was an AMD/ATI !!!!!! for a long time till HP delivered unto my ass a DV8000 w Core Duo and NVidia 7600 512mb.. I removed all AMD and ATI parts from my rigs and sold them..

RIP AMD/ATI..
 
AMD has always been in sorry financial condition. They're #2. Wait until they're back to being competitive with Intel before you buy shares. You know how to read benchmarks, but no one buys stock based on CPU performance benchmarks. I bought AMD at $18 when the first Athlon demonstrated it was beating Intel and sold at $40 when they started to make a little money off it. I then used the cash to buy my wife's wedding ring. So essentially I lost all my money.

Personally I still buy AMD chips because they're fast enough for the people who work here (actually they're much faster than the people who work here), and no good would come of AMD being taken out of the CPU or graphics market.
 
This latest piece of news,in what has become on ongoing eulogy for AMD in the financial press,does not surprise me.What does really surprise me,is the mass crowd of tech fans on this of all sites,continuing to bury their respective heads even deeper in the proverbial sand,and yell even loader "I cant hear you" :eek:

Wake up people.... and smell not the coffee,but that the pot is on fire and needs to be put out with a fire extinguisher !!!! 60+% of the stocks and companies share/company value, under great old uncle Hectors watch has been flushed down the toilet !

All of the cash reserves they had are totally and completely gone !!! AMD's stock has
been downgraded to a sell so many times now in the last year,I have lost count ! I say
Ruiz resigns now !!! He should have resigned last summer,when C2D hit them blindside
like it did then ! Orton should also be fired ! And none of the two should receive any form of compensation !!! Before any exec does I want my stocks value replaced to Dec 05 levels.I bought in at 40+ I sold at near a 58% loss :( My broker told me at the start of the year that AMD would be a 5 dollar share by Nov of 07,and I said he was crazy....

I owned not allot,but enough that between 14 months of buy in and sell off in jan of 07 I lost over 620.00 + US.Might not seem much to some here,but to me it was allot.

Maybe he wasn't so crazy....

:mad:
 
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