Would it be possible?
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AMD on the road to recovery.
- Thread starter humbug
- Start date
Would it be possible?
You say that. Do you remember when Intel killed overclocking on everything outside of a K + Z CPU/motherboard to squeeze another £150 out of us? And do you remember when Intel started binning it’s best parts for locked systems and then had sub bins for the desktop chips?
Do you remember when Intel released the same CPU over and over and used its chipset prices to increase costs?
Your memory is bias and selective.
I think so yes.
Intel has fallen below $50, from $56 a couple of days ago, they are predicted to have lost significant data centre sales to AMD, which is why they are up.
Is AMD's Xilinx acquisition goes through they will get an instant and significant revenue and margins boost, they could overtake Intel's Margins and market cap soon, AMD currently at $150 Billion with Margins at 48% to Intel's 56% margins and $200 Billion market cap.
Intel's revenues are still at around $75 Billion to AMD's $20 Billion, but, and here is why those margins matter so much to investors, if they aren't above a certain level you're not actually making any capital, it doesn't matter what your revenues are, you're just surviving, for AMD at 35% margins they weren't making any money. I don't know where Intel's lower limits are but their margins are in free-fall.
AMD currently have about $5 Billion in capital banked.
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How do we know AMD won't do the same if they manage to get themselves into the same position that Intel were a few years back?. In all likelihood they would be more than happy too when you look at their lastest GPU the 6600 which is just 5% faster than a 5600XT yet costs 18% more even at the MSRP and in their CPU line up they've done away with the non X Sku's forcing consumers to pay up to 50% extra in some cases for an X version.
The more success AMD has then the more like Intel and Nvidia they will become.
Back in the early 2000's AMD's market share was 50% to Intel's 50%, their CPU's were still cheaper, they were still innovating.
Make hay while the sunshine's, and all that. Why sell something for less if you can sell it for more while your largest competitor fails to compete, yet survives due to huge cash reserves. How can you ever be in that position if you don't make the money while the going is good in order to shelter the bad times. At least they are still actually trying to move forward, held back by supplies not demand, which is very odd for a CPU manufacturer to be in.
20 years ago Intel had gathered huge capital from the prior 20 years monopoly and spent billions, perhaps even 10's of billions, a vast sum in those days to pay OEM's not to use AMD CPU's, AMD was on the cusp of becoming thie dominant player, so Intel shut them down, illegally.
If you're not selling CPU's you're not making any money, that's when AMD's problems started.
If you're not selling CPU's you're not making any money, that's when AMD's problems started.
Do you even remember though.
Hundreds of billions.
Maybe...
We are still at the beginning of AMD clawing their way back, i named this thread "AMD on the road to recovery" for a reason. Its a long road.
That was a different AMD and even they have admitted that they don't want to be known as the budget brand anymore.
Judging by the AMD greed and pricehikes with just one year of domination I can't even begin to imagine how bad AMD would become with say 10 years of domination. Probably would make Intel at it's worst look like a consumer friendly company.
Take a quick look at what they did with Far cry 6. The current AMD is as ugly as they come. Offering a company your allegiance is one of the dumbest things you can do.
Not only is it possible, but also highly necessary or even critical, so AMD stays in the business after the Alder Lake launch tomorrow.
Ouch.... Bank Of America cuts Intel's outlook rating.
Intel now down to $48.05, 16% share prices loss in 2 days.
https://seekingalpha.com/news/37581..._source=seeking_alpha&utm_term=RTA+News+Smart
Intel now down to $48.05, 16% share prices loss in 2 days.
https://seekingalpha.com/news/37581..._source=seeking_alpha&utm_term=RTA+News+Smart
You know why they did this? its not possible to survive as the "Budget brand" that term is sets off cogitations of bad products in peoples minds, AMD are reacting to the market, they don't want that cancerous label.
4K8KW10 posts very poor attempts at trolling.
There's no good trolling, just terrible attempts at trolling then running away.
They do, i'm sure even Intel are seeing the writing on the wall for X86, its a smart move on their part going GPU, if Intel can't make a success of it they will not survive long term.
ADL itself could be seen as their first step towards heterogeneous architectures, imagine x86+ARM (or risc V!) mixed cores CPUs, with the future keeping an X86 "chiplet" or "tile" for compatibility and other cores for performance.