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You would think MS,Sony and Nintendo would work something out with them as they are obviously heavily reliant on them
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Dark days, AMD share price at lowest ever.
- Thread starter bru
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Associate
All I'll say is if AMD did somehow go under then graphics forums would become dull places.
Associate
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- 24 Oct 2013
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- 7
The problem was both companies knew AMD was close to broke and got to negotiate on their terms.
From how the revenue and margins seem to be dropping, it seems as the prices and the yields of the chip got better, the savings were passed on to sony and xbox so they could drop prices further while still not losing money. AMD will get less and less profit as the prices of chips lower while in percentage terms the margins stay the same. As a result, AMD console revenue has likely already peaked(and I think they said this a few quarter back) and it will probably be less and less profit in the long run of things.
Simple question of how much profit per console versus total operating expenses.
Sometime ago there was a break down of the costs and the APU was like $100 which will cost a certain amount to make, assemble, test, ship. AMD might make soe thing like $10-20 per console but would have additional costs in R&D and overheads.
Maybe then make a few hundred million from console profit, but if they loose more money from GPUs, CPUs etc. Then the company will make a loss overall.
However, it certainly helps to have the console deals in place. Makes the company somewhat more attractive for investors or a buyout. A guaranteed revenue stream will help prevent bankruptcy.
Part of their contract may have been to provide all design and manufacturing knowledge to a new manufacturer if AMD went bankrupt. The chips aren't made by AMD so if AMD didn't exist Sony/Ms could still get everything fabricate with permission. Would be a hell of a mess.
Also the possibility the console part of the business would be spun out to carry on making a profit while the rest of the company is left to rot.
Permabanned
Fair point and although it would suck for us,surely they could just sack off everything else except the console stuff and still continue to make money. It would be better than going bust but not for us
Caporegime
According to this article there is a lot of short interest in the stock:
http://www.moneyflowindex.org/advanced-micro-devices-inc-nasdaqamd-short-interest-update/382302/
According to 12+ analysts it will be around the $2.50 mark in the short term eventually.
http://www.moneyflowindex.org/advanced-micro-devices-inc-nasdaqamd-short-interest-update/382302/
According to 12+ analysts it will be around the $2.50 mark in the short term eventually.
Like D.P. says I'm pretty sure I've read that they license the right to manufacture the technology, so it would probably be in their interest for AMD to go bust as then they won't have to pay AMD anything.
Soldato
I wouldn't get to worked up about the share price, stock markets across the globe have been in a nose dive over what's happening in China. A lot of the shares are held by big pension funds if they decide to sell they sell in blocks which will contain a element of AMD shares so most likely the movement we are seeing are just stock market chatter.
Soldato
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- 30 Nov 2011
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- 11,375
That would be great, except the nasdaq as a whole is up on where it was a year ago, and roughly level with a month ago, AMD are well down on both
The Market Analyst don't seem to worried....
The company has received recommendation from many analysts. 2 analysts have rated the company as a strong buy. The shares have been rated as hold from 14 Wall Street Analysts. 2 analysts have suggested buy for the company.3 analyst has also rated it as a strong sell. Underperform rating was given by 7 analyst.
The company has received recommendation from many analysts. 2 analysts have rated the company as a strong buy. The shares have been rated as hold from 14 Wall Street Analysts. 2 analysts have suggested buy for the company.3 analyst has also rated it as a strong sell. Underperform rating was given by 7 analyst.
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Fingers crossed AMD's share price makes a U-turn.
Just so you understand 2 analysts said strong buy and 2 said buy, that is somewhat countered by 3 who said strong sell. The 14 who said hold means if you have stock you might as well hold on to it and wait to see what happens but it isn't a recommendation to buy or sell, they basically don't really know, they are sitting in the fence.
The 7 under-performing ratings are also actually a negative sign, the rating isn't as bad as sell but it is not as good as hold. The underperformed means they expect it to perform was than the stock market average, i.e. if you did sell the shares and simply invested in a NASDAQ 500 fund you should do better than the AMD shares, but they don't think there is an immediate reason to ditch the shares.
I just thought I would clarify that because if you don't know then "underperform" sound like a positive when it is a negative. You don't want stock to underperform, you want stock to overperform! You don't go looking for underperforming companies.
So I think overall that is a pretty mixed bag from the analysts. Certainly not very positively but luckily not at all very negative. I certainly woudln't buy AMD stock with those ratings, but I don't like to gamble on the stock market anyway. If someone likes to gamble then a few hundred quid of AMD shares would be quite fun to watch.
Caporegime
AMD share price is up to $1.76 now.
$1.83 now.
Did anyone buy stock yesterday morning at $1.61? Nice double digit return in 24 hours!
Stock back to where it was middle of July, hopefully we have just witness an inflection point. WARNING: before people rush och and buy some stock, AMD shares had a similar 13% rise June 13-22nd before begging a a precipitous landslide and loosing 60+%
Caporegime
Jen Hsun bought loads and now flogged em 
Caporegime
Wait until a couple of weeks before Q3, it'll be $2.50'ish and back down to $1.8'ish after Q3
$1.97 now