Does this mean AMD/ATI discrete graphics cards will be phased out as well? or are the 'dead' PC markets the ones AMD are unable to compete sufficiently in?
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Is the end imminent for AMD?
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Does this mean AMD/ATI discrete graphics cards will be phased out as well? or are the 'dead' PC markets the ones AMD are unable to compete sufficiently in?
I think the writings been on the wall for x86 code now for a decade. There are still some very clunky parts to it.
The other loser will be the famous IBM open architecture where you can slot in all sorts of bits. It is not really needed now with so much functionality on the motherboard chipset.
Small, light, cool and quiet is the mantra. A computing device in every room or school desk for a $100 or so. most computing tasks can be done on a 1.6GHz processor and often that is overkill.
I expect if AMD did leave the desktop CPU market to Intel it would mark the beginning of the end for the market and nvidia would also be in an invidious (excuse pun) position as well. I believe that AMD graphics cards are still very strong and would survive any breakup quite well.
The other loser will be the famous IBM open architecture where you can slot in all sorts of bits. It is not really needed now with so much functionality on the motherboard chipset.
Small, light, cool and quiet is the mantra. A computing device in every room or school desk for a $100 or so. most computing tasks can be done on a 1.6GHz processor and often that is overkill.
I expect if AMD did leave the desktop CPU market to Intel it would mark the beginning of the end for the market and nvidia would also be in an invidious (excuse pun) position as well. I believe that AMD graphics cards are still very strong and would survive any breakup quite well.
With AMD losing 20% of it's share value yesterday, it must now be very very close to being broken up. They are unlikely to receive more inves tment, their cash stockpile is dwindling, and they are making big losses. They simply do not have enough time o turn things around because they have no killer product available now.
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I'm sure AMD will be fine 
. I don't think they have anything to worry about on the GPU side of things and their APU's are also very attractive for HTPC builds (more so than Intel's offerings). I like Intel, but i don't want them to be the only choice when building a new rig, and i'm sure AMD will do their best to survive (even with help) just to prevent Intel claiming total dominance in the PC market.
. I don't think they have anything to worry about on the GPU side of things and their APU's are also very attractive for HTPC builds (more so than Intel's offerings). I like Intel, but i don't want them to be the only choice when building a new rig, and i'm sure AMD will do their best to survive (even with help) just to prevent Intel claiming total dominance in the PC market.
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There is no panic in that AMD executives Q3 discussion transcript i posted earlier.
The discussion included analysts from the likes of Deutsche Bank and Barclays Capital. All of which were rationally discussing going on for a couple of years yet before things start to getting much better.
There is no talk of an imminent end in it at all, they are expecting shares to be as they are today or worse for the next year, they are expecting revenue to be flat in 2013 and pic up again in 2014.
Multi Billion $ companies don't just go under at the drop of the hat, it doesn't work like that.
Companies like this have so many ties, connections, dependants, friends and fingers in pies its almost impossible for them to just suddenly sink.
Global Foundries have a fairly significant dependence on AMD, that's probably why Deutsche Bank were there, these guys all know eachother. they all scratch eachothers back.
Its not what you know- but who you know, inter-business networking.
Don't panic.
The discussion included analysts from the likes of Deutsche Bank and Barclays Capital. All of which were rationally discussing going on for a couple of years yet before things start to getting much better.
There is no talk of an imminent end in it at all, they are expecting shares to be as they are today or worse for the next year, they are expecting revenue to be flat in 2013 and pic up again in 2014.
Multi Billion $ companies don't just go under at the drop of the hat, it doesn't work like that.
Companies like this have so many ties, connections, dependants, friends and fingers in pies its almost impossible for them to just suddenly sink.
Global Foundries have a fairly significant dependence on AMD, that's probably why Deutsche Bank were there, these guys all know eachother. they all scratch eachothers back.
Its not what you know- but who you know, inter-business networking.
Don't panic.
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Well, multi billion dollar companies with IP and contracts don't go under. Considering healthy GPU sales and the Nintendo WiiU contract I think they'll be fine, Nintendo consoles have been consistently selling well for decades.
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Maybe not so much with the N64 or the Gamecube, but their Wii and DS sales made up for that
.x86* might be a problem but the rumours are that Nintendo only took AMD's GPU AFAIK. So, the deal for that is probably similar to the Xbox360 deal: AMD supplied the design and Nintendo have to get it manufacturer and pay royalties. Therefore <if> AMD were to fold they'd still be able to make their console.
*That is the APU rumoured for the Xbox720 and PS4
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The stock price varys by how people judge the company and many other factors like credit available. They arent reliant on the stock for funding, it pays no dividend its an afterthought
AMD will get royalities from use of its design, the main concern would be debt vs that revenue
Main reasons for weakness in Intel or most tech recently has been a switch over from desktop to handheld smaller cpu, an emphasis on power saving and also fiscal budget cutting from ongoing falling government tax revenue
Main focus forthcoming is the success of Windows 8 and its relevance to each companys production and sales targets
AMD will get royalities from use of its design, the main concern would be debt vs that revenue
Like General Motors, I think it depends on liabilities accumulating from revenue. Its the reason AMD switched out of manufacturing itself I think
Main reasons for weakness in Intel or most tech recently has been a switch over from desktop to handheld smaller cpu, an emphasis on power saving and also fiscal budget cutting from ongoing falling government tax revenue
Main focus forthcoming is the success of Windows 8 and its relevance to each companys production and sales targets
Stock price has no direct correlation with if the company will survive or not no but that massive almost 20% drop in a few hours shows how low confidence is in the company and that alone can make a bad situation a lot worse.
A lot of people who matter aren't confident in the management of the company and there are questions if they can afford their financial obligations in the early part of next year (typically a tough time for many companies) regardless of how well or not upcoming products do it could be too late to save the company if people who have money tied up in the company, etc. pull the rug from under them. That aside they look like being about 3 years away from becoming profitable making atleast a 100m loss a year until they become profitable again - this in itself isn't that unusual but with everything else they may not survive anyway to become profitable again.
There may be no panic in the statements/transcripts as part of the earnings conference, etc. but those people you mentioned aren't confident in the management of the company any more and thats reflected in the massive dump the stock price took, multi billion $ companies do just go under sometimes, a little bit different in this sector as things like patents and royalties, etc. can give them some worth to trade on but quite commonly a lot of companies have significant financial obligations to meet in Q1 (rent, debts, etc.) and if they are struggling for cash flow and people aren't confident enough in their long term future to defer if needed they could have the rug pulled from under them by people who'd rather cannibalise the company than risk making a loss.
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Stock price directly reflects investor confidence. Investor confidence directly affects funding and available borrowing rates. Hence, stock price has a direct impact on funding if the company in question is not cash rich.
They are in a stronger position now than they have ever been during one of their past 3 or 4 so called crisis, the same prediction and share value were then as they are now.
If share price is an indicator AMD's position then let me tell you about the pattern in AMD's share price in the last 5 years alone.
2007: $12 / 2008: $2 / 2009: $10 / 2010 Q1: $6 / 2010 Q3: $9 / 2011 Q1: $5 2011 Q3: $8 / 2012 Q3: $2
Its up and down every year, this year is nothing new. the only reason its been talked about in this way now is because Intel are also on a steep slide down like the rest of the industry, so everyone looses their heads.
The stock market is almost irrelevant to AMD, to them its an indication of a need to restructure and enter new markets.
PS: the $100m loss is down to a Llano write down, they over produced the chip and to late, Against Trinity they will probably be selling them off at a loss, or scraping them.
If share price is an indicator AMD's position then let me tell you about the pattern in AMD's share price in the last 5 years alone.
2007: $12 / 2008: $2 / 2009: $10 / 2010 Q1: $6 / 2010 Q3: $9 / 2011 Q1: $5 2011 Q3: $8 / 2012 Q3: $2
Its up and down every year, this year is nothing new. the only reason its been talked about in this way now is because Intel are also on a steep slide down like the rest of the industry, so everyone looses their heads.
The stock market is almost irrelevant to AMD, to them its an indication of a need to restructure and enter new markets.
PS: the $100m loss is down to a Llano write down, they over produced the chip and to late, Against Trinity they will probably be selling them off at a loss, or scraping them.
The share price alone means nothing - as mentioned several times - its more the trends of the share price and what the changes are in response to that are what people are basing the doom and gloom on - they've never been in the position they are now - the drop in 2008 was at a time when everyone took a big long decline inline with the economy the rest of the ups and downs are inline with product cycles, acquisitions, etc. what they are facing atm is a completely different situation to anything before.
The telling thing for me (and I suspect whats triggered the loss of confidence in the company thats resulted in the share price nosedive) is the talk of needing to diversify, lot of guff about trimming operations, places where savings can be made, etc. and very little (of real substance) about how they are going to stimulate growth in the company and what actual new areas they are exploring, what other sources of revenue they have actual plans to tap into, etc. see it time and time again in the months before a company goes under or is sold off, etc.
The telling thing for me (and I suspect whats triggered the loss of confidence in the company thats resulted in the share price nosedive) is the talk of needing to diversify, lot of guff about trimming operations, places where savings can be made, etc. and very little (of real substance) about how they are going to stimulate growth in the company and what actual new areas they are exploring, what other sources of revenue they have actual plans to tap into, etc. see it time and time again in the months before a company goes under or is sold off, etc.
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Perhaps share price means nothing and it could just be coincidence that share prices slumped very soon after major product releases (Phenoms & Bulldozer). The current nosedive is likely due to so called decline of the PC Market, and the fact that AMD have no foothold (yet) within the Tablet market. The graphics diivision is doing okay, but how much is investment suffering due to problems within the business as a whole.
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Wheres their bond prices listed at
http://community.nasdaq.com/News/2012-10/could-amd-go-bankrupt.aspx?storyid=183168#.UILyr4bps6U
Tech pulled back quite sharply this week, google dropped 9% in a few minutes and so on. It might be amd suffered a knock on effect, its earnings season
The stock has a more negative attitude then 2008
They owe 8bn ? http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=amd
What happened with HBOS was as the maturity date approached, investors panicked.
In 2008 finance year HBOS has to roll over 200bn I think it was, a gigantic amount and it caused pressure most evidently on the share price if you remember Alex Salmon bursting a blood vein around March 2008 well it was predictive in that case
In about 14 months AMD probably has to refinance 3bn set at 6% now which is more reasonable then it will be after. Unless they make a lot of profit before then, are they making any
http://community.nasdaq.com/News/2012-10/could-amd-go-bankrupt.aspx?storyid=183168#.UILyr4bps6U
Tech pulled back quite sharply this week, google dropped 9% in a few minutes and so on. It might be amd suffered a knock on effect, its earnings season
The stock has a more negative attitude then 2008
They owe 8bn ? http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=amd
What happened with HBOS was as the maturity date approached, investors panicked.
In 2008 finance year HBOS has to roll over 200bn I think it was, a gigantic amount and it caused pressure most evidently on the share price if you remember Alex Salmon bursting a blood vein around March 2008 well it was predictive in that case
In about 14 months AMD probably has to refinance 3bn set at 6% now which is more reasonable then it will be after. Unless they make a lot of profit before then, are they making any
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Exactly, a $150m loss is not as serious as it looks when they have plenty of money in the Bank. $100m of that loss is also down to them writing off late produced Llano stock which they can't sell because of Trinity.
They are to big in this climate, so they are down sizing to cut overheads, they will also be producing less volume for 2013 so they don't have to end up writing some of it off in the end.
How do you come to the conclusion that they will be making atleast 100m Loss for the next 2 to 3 years? You know something we don't, do you have a Cristal ball?