AMD now worth less than it paid for ATI
- Thread starter Davros
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Yeah, it's all up to Shangai for 2008 - and I'll admit not to be very optimistic. At best, they'll be able to sell a 3GHz Shangai in Q3 with 5% higher IPC than Barcelona. How is that competitive with Penryn, let alone Nehalem? If they do deliver, it'll be a very nice improvement over Barcelona at least - but that's not very hard, mind you.
If I had to take a bet, I'd say AMD's market cap will fall down to less than $3.2B within the next 9 months. Of course, market caps don't really matter, what does is actual financials - and I won't try guessing there, too many factors at play at many months out.
If I had to take a bet, I'd say AMD's market cap will fall down to less than $3.2B within the next 9 months. Of course, market caps don't really matter, what does is actual financials - and I won't try guessing there, too many factors at play at many months out.
I hope it's not up to Shanghai. I put some hope on 10.5k next year. AMD must have some flexibility to broaden its investiments on research.
As for the Nintendo comparison, I don´t think its fair. Consoles are basicaly toys. You still have a chance to beat the competition by using artistic creativity, like the Wii console. Now, IC companies relies to heavily on performance. Artistic sense not always bring the best results, if it ever once brought.
As for the Nintendo comparison, I don´t think its fair. Consoles are basicaly toys. You still have a chance to beat the competition by using artistic creativity, like the Wii console. Now, IC companies relies to heavily on performance. Artistic sense not always bring the best results, if it ever once brought.
Wii and DS aren't superior products though, they are well marketed.
Even if AMD marketed their new CPUs well, the average guy on the street is still going to know they aren't as good as Intel.
I have loved AMD since I had a 700 mhz thunderbird, but I am not going to buy one next time, Intel are far stronger CPUs now, it's not even close and it pains me to say that it really does.
I meant that in terms of "turning things around", not as a comparison of the product portfolio or company phyllosophy.
Just to show that a company which is "down on its knees" still CAN turn things for the better with good execution and strong products, that in reference to "DAAMIT is finished" calls.
And don't dare telling the guys in the console section that their object of worshipping is "just a toy", they'll crucify you
Just to show that a company which is "down on its knees" still CAN turn things for the better with good execution and strong products, that in reference to "DAAMIT is finished" calls.
And don't dare telling the guys in the console section that their object of worshipping is "just a toy", they'll crucify you
vertex_shader
Banned
AMD strugling is really bad from customer side, and i see no chance for real competation in CPU/GPU segment in the next 12 months.
If AMD try to sell ATi today, how much money AMD can get for ATi?
If AMD try to sell ATi today, how much money AMD can get for ATi?
2008 is a write-off, much as 2007 was. Let's hope Bulldozer hits in '09 and not the recently rumored '10.
WhiteCrane
Newcomer
I dont understand. AMD is FINALLY back in peoples' homes. Dell and Gateway, Acer, plenty of companies are bundling AMD chips again, like they haven't in a LOOOONG time.
I still think it is not related. WII is a nice idea, and that´s what toys and games are fundamentaly based. Chips, on the contrary, are a result of a technical and engineering effort.
I really wanted to believe that they can turn the tide, but I don´t think nintendo is a good comparison... maybe hanging chips and motherboards on clothes?
Well, even if AMD make a comeback again in the future and take the performance lead against Intel will it really make the slightest bit of difference? They had CPUs 'better' than their Intel equivalents for a number of years but barely made a dent in Intel's profits.
Unfortunately, the sheer size of Intel means I just can't see AMD competing in the long term - their R&D budget is a fraction of that of Intel so they've fallen behind in process technology not to mention the vast differences in fab capacity.
I can't really see them pulling a rabbit out of a hat unfortunately.
Unfortunately, the sheer size of Intel means I just can't see AMD competing in the long term - their R&D budget is a fraction of that of Intel so they've fallen behind in process technology not to mention the vast differences in fab capacity.
I can't really see them pulling a rabbit out of a hat unfortunately.
As the ultra-cheap budget option. Dell developed a new low-end lineup based on their new AMD hardware when they started selling it, for example.
Freak'n Big Panda
Regular
I wonder if AMD could push into the emerging markets in India and china and gain some sort of foot hold there... clearly they're not going to be competitive with intel on a performance basis for at least another year so this would offer a good way to make up for the lost ground.
WhiteCrane
Newcomer
They need to fix the Phenom and take performance lead. I also think they should sell stake in ATI. They dont need a GPU company.
Do what you're good at.
Do what you're good at.
As to how much a company is valued at the stock price is not a good indicator. When AMD were at $3 they were worth a lot more than that and when they were at $40 they were worth a lot less than that, so the share price always seems to lag what the actual value is.
Currently I think the value is really low due to the debt, the lack of profits, the lack of liquidity, the problems with current products and the evidence seemingly pointing to the competitor having better products in the near to mid future.
Ironically, although AMD paid a lot for ATi it might be Ati that provides enough income to tide over the cpu part of AMD until it recovers, if it ever does. The income from ATi needs to offset the interest payments on the loan though of course.
Currently I think the value is really low due to the debt, the lack of profits, the lack of liquidity, the problems with current products and the evidence seemingly pointing to the competitor having better products in the near to mid future.
Ironically, although AMD paid a lot for ATi it might be Ati that provides enough income to tide over the cpu part of AMD until it recovers, if it ever does. The income from ATi needs to offset the interest payments on the loan though of course.
Eh, no. Besides, who would want to buy ATi now after the failure that was R600, and their utter lack of competition at the high-end? Besides, you don't buy a company and then sell it off a year later. They're in this for the long-term.
Mod Edit: Removed 'QFT' in the interests of peace and constructive debate.
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