AMD Declines on GPU Losses

[Yaayuh!]

http://blogs.barrons.com/techtrader...t-cuts-consoles/?mod=BOL_qtoverview_barlatest

Shares of chip maker Advanced Micro Devices (AMD) are down 12 cents, or almost 6%, at $1.97 following a report yesterday afternoon by Reuters’s Nadia Damouni and Noel Randewich that said the company hired JP Morgan to “explore options,” which was almost immediately followed by a company statement asserting AMD is not shopping itself.

Weighing on the shares today, principally, is the concern that the company lost share to competitor Nvidia (NVDA) in the third quarter in PC graphics processors, or GPUs, according to data released by Mercury Research.


Wong ticks off the things that he thinks the company is doing, or can do, right to improve its position across multiple markets:

AMD is taking appropriate actions to reduce costs and streamline in product development efforts. We think that AMD has done a good job in leveraging its graphics and microprocessor expertise to create its APU product lines. We think that AMD’s opportunity to design and sell chips into game consoles will very helpful in provided a near to intermediate term revenue boost as well as some nonrecurring engineering (NRE) funding for R&D costs […] We suspect that AMD has a contract to develop and manufacture game console processors for either one or two of the large game console maker (perhaps Sony (SNE) and/or Microsoft (MSFT)) systems that may be launching in the second half of 2013.

 

[mmj_uk]

Surely they must be having money troubles (needing loans) or looking to sell? why else would they go to a bank for help? also the AMD guy never denied they were looking to sell off just that they weren't "at this time".

 

[CAT-THE-FIFTH]

TBH,its other parts of the company which are having the major issues,and Nvidia released their more value orientated desktop parts in the last quarter,so of course they are going to gain marketshare!!

The figures are for Q2 2012 where Nvidia shipped nearly 1 million less discrete cards than in the previous quarter. Now with Nvidia refreshing many of their lower end ranges,of course marketshare will go up.

Where were all the threads in the GPU section regarding this?? Zero.

More sensationalism as usual.