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AMD MarketShare back to 30%

These results are from Q2, before all the new cards were released. AMD's sales figures were flat, nvidia's dropped. Did AMD really "gain" marketshare? Or did people just stop buying cards in the run up to both new cards and big price drops on old cards?

It'll be the Q3 results where we see if AMD actually managed to increase sales or not.
 
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LoadsaMoney said:
AMD Announces Seasoned Issue Worth $600 Million in Shares and $450 Million of Convertible Senior Notes

http://wccftech.com/amd-seasoned-issue-600-450-million-analysis/
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The market sure doesn't like that, down over 6% today.

But basically AMD are saying they don;t expect to pay sufficient profits in order to service their large debts so are selling the debt to investors. AMD has $1bn in cash and $2bn in debt, not hard to see they need to find spare $1bn .

This should see AMD less burdened with debts and allows a longer runway for Zen to succeed without cutting costs even more. It may be a reflection of their internal analysis not looking so favorable over the next 2 years but more liekly it is looking at longer term growth through earlier reinvestment.
 
D.P. said:
The market sure doesn't like that, down over 6% today.

But basically AMD are saying they don;t expect to pay sufficient profits in order to service their large debts so are selling the debt to investors. AMD has $1bn in cash and $2bn in debt, not hard to see they need to find spare $1bn .

This should see AMD less burdened with debts and allows a longer runway for Zen to succeed without cutting costs even more. It may be a reflection of their internal analysis not looking so favorable over the next 2 years but more liekly it is looking at longer term growth through earlier reinvestment.
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Its up over 300% in this year, frankly i'm amazed its stayed around $7, 6 months ago they were trading at $2:50.

But basically AMD are saying they don;t expect to pay sufficient profits in order to service their large debts so are selling the debt to investors. AMD has $1bn in cash and $2bn in debt, not hard to see they need to find spare $1bn .
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Well, no... the reason is far less doom and gloom than that.

A year ago AMD with a market cap at $2Bn was not in a position to raise $1Bn from their stock in order to pay off half their debt.
Now with a market cap of close to $7Bn they are.

With the debt that AMD have they would be stupid not to sell some of those option to pay off half of their $2Bn debt, for a start it will save them $60m a year in interest payments, not to mention actually clearing half their debt.
If you were in a position to pay half your mortgage in one go wouldn't you do that?

The reason for the slight slump of 6% is likely natural shifting around of AMD stock, and driven by the fact that this move will dilute the value of the stock by about 10%

Whats more, and to address your comment on AMD's own confidence, they would only do this if they were confident of their market value remaining about as high as it is or growing.
Some analysts are predicting $15 a share by 2019.
before then they may well sell more options to pay off the remaining $1Bn... how gloomy is that?

I'll tell you what this actually is, for years the doom and gloom sayers have been saying its AMD's debt that will kill them, after 8 years of saying that it has not happened.

What has actually happened is that AMD are now paying back their debts, this is AMD coming back to health, instead of admitting they were wrong some people still like to twist even that in to doom and gloom.

Broken companies cannot raise $1Bn.
 
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D.P. said:
The market sure doesn't like that, down over 6% today.

But basically AMD are saying they don;t expect to pay sufficient profits in order to service their large debts so are selling the debt to investors. AMD has $1bn in cash and $2bn in debt, not hard to see they need to find spare $1bn .

This should see AMD less burdened with debts and allows a longer runway for Zen to succeed without cutting costs even more. It may be a reflection of their internal analysis not looking so favorable over the next 2 years but more liekly it is looking at longer term growth through earlier reinvestment.
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Nonsense, the stock was diluted, the price should go down, if the market didn't like it the stock would have tanked beyond the price of the dilution... which it didn't. In fact the result is extremely strong and far better than most things it could be.

Cash on hand vs debt is a completely pointless measure, AMD had that cash, have increased their cash on hand and did it will paying off the interest.

This is a way to encourage investment and help pay off a large chunk of debt in the short term before a suspected significant rise in the market.

If they wanted to raise $1 billion with a stock price at $2, they'd have had to issue enough shares that every existing share holder would be angry and the market would react badly. If they did it at $15 supposing AMD hit that some time after zen server chips show a good quarter, then there is less reason for people to invest as they might be deemed closer to their peak. Currently Zen looks promising, Vega looks promising, DX12 looks promising and without 2 of those AMD's market share has been increasing significantly in the past 6 months.


That the market reacted VERY WELL to this extra stock issue just reinforces that. Interest payments will be down, paying down the rest of the debt now becomes easier, if you were paying 160mil a year on 2billion just on the interest, then if you continue paying 160mil on 1billion debt, suddenly you're paying down 80mil interest and 80mil of the actual debt. AMD go from maintaining the debt to paying it off, to the market that is a HUGE step and a huge sign of increasing health.

This kind of stock price was the ideal time to make such an issue, to make a big enough dent in the stock to look good, at a high enough price that you don't have to issue so much stock you anger the existing shareholders and before new products that the market believes will raise stock prices further thus people investing at $7 in the new shares isn't a problem.


While the shares have been devalued, in turn it has increased the health of the company by reducing debt and making the remaining debt more manageable. Also restructuring debt is cheaper the less of it you have. So notes due in 2020 get turned into new notes at a much better interest rate when restructuring 1 billion instead of 2 billion.

Nothing today has shown anything but excellent signs for AMD and the very lack of a significant drop shows the market knows this.
 
Yup definitely a good move by AMD, it is a good step to full financial recovery.

Lets just hope that Zen and Vega are a hit, then they can start to put some more into research for whatever they are planning next.
 
TheRealDeal said:
Getting myself an Xim4 which allows me to properly use a mouse and keyboard with the ps4. The PC is my preffered system but the majority of my mates are on ps4. They are not going to know what hit them in fps games when i get it. Had a shot of my mates and in my first shot was 40/10 in black ops 3. With some tuning on my own mouse and practice, ownage will be coming there way :D:D.
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:D


If true, great to seem them claw some share back.
 
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im not sure if the graphics card market is big enough for a company like samsung to invest in, they seem to have plenty of others things to tide them over
 
The closest intel will get to the discrete GPU market is if they released a high performance APU with their iris graphics, or allowing NV/AMD to fab graphics chips at their foundries.
 
It costs $bn to develop capable Discrete GPU's, and AMD / Nvidia own the lions share of the IP needed, by lions share i mean; between them, all of it.

Samsung could afford it but they would have to negotiate IP with AMD and Nvidia and with them being new to the high performance Desktop and workstation markets they wouldn't get a return on their investments.

Intel could get a return but they would also have to negotiate IP with AMD and Nvidia.

Its not going to happen, we are stuck with what we have.

What could happen is someone like Samsung taking over AMD and ramming them full of cash, AMD would be a juicy proposition for Samsung as they own a lot of IP very useful to them.
 
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humbug said:
It costs $bn to develop capable Discrete GPU's, and AMD / Nvidia own the lions share of the IP needed.

Samsung could afford it but they would have to negotiate IP with AMD and Nvidia and with them being new to the high performance Desktop and workstation markets they wouldn't get a return on their investments.

Intel could get a return but they would also have to negotiate IP with AMD and Nvidia.

Its not going to happen, we are stuck with what we have.

What could happen is someone like Samsung taking over AMD and ramming them full of cash, AMD would be a juicy proposition for Samsung as they own a lot of IP very useful to them.
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The issue would come if owning AMD gives their memory business a conflict of interest and they're no longer chosen by nvidia now that they're competing.

I don't think that would have a massive bearing though given how much business Samsung do with Apple
 
Cleeecooo said:
The issue would come if owning AMD gives their memory business a conflict of interest and they're no longer chosen by nvidia now that they're competing.

I don't think that would have a massive bearing though given how much business Samsung do with Apple
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I doubt Memory IC's no longer sold to Nvidia would be something to cause Samsung to cry. it must be what 0.1% of Samsung's business?

With Samsung's money AMD's Liquid VR, X64, Heterogeneous System Architecture, Asynchronous Shading and a ton of other IP could start somewhat of an evolution for them.
 
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PS4 Pro... Launches in November.

Q: How does PS4 Pro compare to the standard PS4?
PS4 Pro is significantly more powerful than the standard PS4 model. PS4 Pro’s advanced graphics processor unit incorporates many features from AMD’s latest “Polaris” architecture, as well as some fully custom hardware innovations, and is considerably more powerful than the GPU included in the standard PS4.
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http://blog.us.playstation.com/2016/09/08/ps4-pro-the-ultimate-faq/
 
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It's been SUCH a long time since I've owned an AMD card and as somebody who shamelessly jumps on whichever product provides the best performance that's very telling for me. It's great that they're doing well in the lower end of the market, but I long for them to start making inroads into the top tier again. With their current strategy evidently paying dividends and the company starting to return to health I don't see that happening any time soon :(
 
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