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Article: Is There A Turnaround For AMD Ahead?

Nelly

Nelly

Nelly

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Seeking Alpha said:
Advanced Micro Devices (AMD) designs and produces microprocessors and low-power processor solutions for the communications, computer, and consumer electronics industries. The majority of the firm's sales are in the computer market. AMD acquired graphics processor and chipset maker ATI in 2006 in an effort to improve its positioning in the PC food chain. In 2009, the firm spun out its manufacturing operations to form a foundry joint venture, Global Foundries.

AMD is losing market share due to intense competition in the business. In the battle for microchip markets, Intel (INTC) emerged as the winner. Intel's win was an unfortunate lost for AMD and its shareholders. AMD lost about half of its market value in this year alone. The stock looks like a bargain at the current prices, but there are several risks involved. In this article, I dig deeper into company's recent financials and restructuring efforts to prove my point.
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Read the full article here >> http://seekingalpha.com/article/1080861-is-there-a-turnaround-for-amd-ahead
 
Seems to cover a lot of what I've been saying recently - and taking some criticism for stating.

The threat to AMD is more short term than long term (unless they epically screw up) mid to long term revenues should give them enough buffer to cover restructuring the business to pursue business more relevant to the long term future of the company, which looks fairly good, but short term cashflow is starting to feel the squeeze - with a downturn in investor and partner confidence it makes it harder for them to get outgoing payments deferred where needed, harder to borrow money when needed, etc. and they are going to struggle to both fund ongoing operations and effectively invest in the long term development, etc. thats vital to the long term viability of the company.

People are going to say its such a big company it can't/people won't let it happen but if you read the statements many of the companies connected to them have made many of them have said if it came to it they would rather see AMD fall in the current economy than try to prop the company up at the risk of their own company.
 
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NVIDIA Corporation is another big competitor of AMD in the tech industry. Nvidia makes some of the leading graphics cards in the market, but the company also makes the processors for tablets and phones. It is great to see that Nvidia almost have half of the market capitalization in cash. It highlights how much cash the company has on hand.
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Therefore, AMD declared a number of strategic moves in an effort to become cash-flow positive in the long-term. The new strategy is simple: stop attempting to battle Intel on its own turf. In addition, the company has now established a long-term goal to have only 40 percent to 50 percent of its revenues from the traditional PC space. AMD hopes to have the rest of its revenues come from alternate sources like micro-servers, semi-custom embedded design, and ultra-low power APUs. In addition, the company needs to turn cash flow break-even at a lower revenue rate.
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Two things i picked up. Kinda knew they were pushing APUs though.
Nvidia's cashflow and AMD surrendering to Intel, doesn't look too hot for the company in the short/mid long term.
 
AMD share price has taken a bigger hit than Intel and Nvidia.
But, its not all bad news, they have recovered a lot of those shares in the past month with the share price rising very steeply, they have consistently out performed all of their competitors, some by a huge margin, while Intel and Nvidia continue to flat-line or decline.

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They are also down sizing their workforce, that is not a bad thing, personally i don't see why cutting your overheads in a shrinking market is a bad thing, its the sensible thing to do. they are to big for the size of the market as it currently stands.

They have stopped that silly purchase commitments with Globalfoundries.
They have been loosing money from that for years with all the write downs from over stocking, they have now cut those purchase commitments by more than half, which is about right for the size of he market they have today.

Advanced Micro Devices Is Already Inside A 4G Tablet And Nobody Has Noticed

AMD market share in mobile will always be small and unnoticed, but their low power APU's will always attract portable device markers giving them a footprint and another source of revenue.

And another source of revenue is SeaMicro, their high density low power server boards are the best in the business, and patented.

They will continue to make some of the best GPU's on the planet.
The coming 28nm GCN APU's will be a vast step up from their current APU's and knock Intel's Haswel iGPU back into the dark ages.

They will continue to make mainstream market CPU's and continue to improve them.

They already are hardware suppliers to Nintendo, Sony will be added to the portfolio in 2013, and Microsoft looks almost a certainty.

AMD have a lot going for them in 2013/14, and with massively cut overheads they are sure to be back on a profitable footing.
 
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Interesting. Their APUs will be popular in the laptop market, although Intel have such a solid brand strength there. I'd like to see AMD still fighting the large form factor fight, for our sake more than anything. I don't like the idea of Intel being the only fish in the pond.
 
Devrij said:
Interesting. Their APUs will be popular in the laptop market, although Intel have such a solid brand strength there. I'd like to see AMD still fighting the large form factor fight, for our sake more than anything. I don't like the idea of Intel being the only fish in the pond.
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+1, if they think people will by their products 'regardless' they will start cutting back on development and production costs.

Like more expensive TIM solutions to accommodate extra heat from overclocking, next goes overvolting, then the more expensive CPU interchangeable sockets..... see where i'm going with this?
 
Devrij said:
Interesting. Their APUs will be popular in the laptop market, although Intel have such a solid brand strength there. I'd like to see AMD still fighting the large form factor fight, for our sake more than anything. I don't like the idea of Intel being the only fish in the pond.
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If AMD can manage to somehow work with the partners and able to deliver A10-5800K performance on a laptop for £500 price range or less, it would certainly be very attractive...but unfortunately the fastest APUs that are currently available for laptop are still quite behind A10-5800K's performance. Hope AMD would get there soon.
 
humbug said:
They are also down sizing their workforce, that is not a bad thing, personally i don't see why cutting your overheads in a shrinking market is a bad thing, its the sensible thing to do. they are to big for the size of the market as it currently stands.
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Cutting overheads to suit ongoing/changing business models as such isn't a bad thing - problem is all too often staff are cut as its the obvious, easy way to look like your doing "something" to "manage" a financial downturn and keep the investors happy whereas the companies that have a higher chance of surviving are the ones where before cutting staff, etc. they look at ways of utilising what they have better to pursue new avenues of business and so on.
 
Rroff said:
Cutting overheads to suit ongoing/changing business models as such isn't a bad thing - problem is all too often staff are cut as its the obvious, easy way to look like your doing "something" to "manage" a financial downturn and keep the investors happy whereas the companies that have a higher chance of surviving are the ones where before cutting staff, etc. they look at ways of utilising what they have better to pursue new avenues of business and so on.
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AMD have been to big for their shoes for far to long, twice the number of staff that Nvidia have, they don't need all of that fat and its about high time they went for some liposuction.

I don't even think 15% is enough, there is more dead weight to be cut loose i'm sure.
 
Martini1991 said:
Already got A10 IGP's at that price range don't we? Maybe lower clocked.
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That's the thing...A10 5800K is already pretty much at the just right/minimum one would hope for performance wise for gaming on a laptop...the AMD A10 4600M is still quite a far bit behind in terms of performance. It might wear the same A10 label, but it certainly ain't A10-5800K performance. Hope the next APU range would be able to hit that kind of performance.
 
Marine-RX179 said:
That's the thing...A10 5800K is already pretty much at the just right/minimum one would hope for performance wise for gaming on a laptop...the AMD A10 4600M is still quite a far bit behind in terms of performance. It might wear the same A10 label, but it certainly ain't A10-5800K performance. Hope the next APU range would be able to hit that kind of performance.
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Posibly Steamroller, the current A10 is a 6000 series GPU core.

The Steamroller APU will be the current 7000 or next 8000 GCN GPU, as optimisations of GCN 2 are unknown (8000 series 28nm GPU) and we assume the current gen;- its a 50% per core performance improvements and about 30% more power efficient, and a smaller DIE which may, probably will result in more Stream Processor cores.

Do the maths, as they say....

I think we are looking at a 7770 on DIE, and then CF that with what ever the 7770 like GPU it will be, 8750? hello........
 
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Martini1991 said:
http://www.cpu-world.com/CPUs/Bulldozer/AMD-A10-Series A10-4600M.html

Says 7660G to me.
76XX is a 66XX rebrand anyway (Desktop)

Afaik, that 7660G is a lower clocked desktop 7660D
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That's the thing...since it is at a lower clock, it still won't be able match it performance of the desktop counterpart...kinda like comparing laptop IvyBridge to desktop IvyBridge. I think it would take the next gen APU (for laptop) to be able to match the 7660D despite at a lower clock.

Don't get me wrong...I would love to buy a laptop with the same performance as the desktop A10-5800K for around £500 right now...but sadly there isn't one - yet.
 
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Martini1991 said:
Agh, I get you.

On the topic of Laptop Ivy, mine scores 6.X in Windows 8 System Rating :p
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I score 7.9 (Maxed in win 7) on the GPU at stock, 7.7 on the CPU overclocked and 7.8 on the memory @ 2800Mhz CPU-NB / 1600 RAM.

You know it means FA...... :p
 
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