• Competitor rules

    Please remember that any mention of competitors, hinting at competitors or offering to provide details of competitors will result in an account suspension. The full rules can be found under the 'Terms and Rules' link in the bottom right corner of your screen. Just don't mention competitors in any way, shape or form and you'll be OK.

Is the end imminent for AMD?

http://seekingalpha.com/currents/post/674571?source=email_rt_mc_readmore&ifp=0

  • Monday, November 19, 4:04 PM (AMD +2.7%) may have plenty of problems, but bankruptcy risk isn't one of them, argues Williams Financial. Abu Dhabi-based Mubadala Development (previous) just raised its stake in the chipmaker to 19% from 15%, and Williams considers the odds of Mubadala refusing to provide AMD with needed liquidity to be very low. The firm thinks shares should return to the $3-$4 range if insolvency fears dissipate.
Click to expand...
 
Last edited:
If they can get their chips into both new consoles.. I think amd shares would be worth a punt
 
Rroff said:
I'm guessing thats in response to this http://www.businessweek.com/news/20...g-cash-crunch-amid-quest-for-new-markets-tech

Which IMO is glossing over the real cashflow problems AMD faces but people stepping up to shore up the short term issues/concerns does help there a lot.
Click to expand...


What the article is saying is Mubadala would not have bought more AMD shares to increase its stake if the situation was critical.

The situation at AMD is far from good, but i also think a lot of people overstate it to get people to read their article, the more urgent and fantastic thier story is the more popular it will be.

I think there are also others with an invested interest in competing companies who see their own investments in those companies declining in a shrinking market, and figure their shares would get a nice boost with AMD completely out of the way, so they go on a mission to exacerbate the AMD doom and gloom in order to frighten people away and so force their predictions to come true.

They smell blood, so the thangs come out.
 
Last edited:
With AMD having the next generation consoles hardware locked up there is zero chance they go under, Sony/Microsoft wouldn't let them. That alone is worth investing in them, especially as they seem undervalued at the minute given this fact.
 
Phreaky said:
With AMD having the next generation consoles hardware locked up there is zero chance they go under, Sony/Microsoft wouldn't let them. That alone is worth investing in them, especially as they seem undervalued at the minute given this fact.
Click to expand...

That is probably why Mubadala Development increased their stake in AMD, they are inside and know whats actually going on.

AMD are so badly valued in part because of the constant sensationalist bankruptcy predictions.

Some people are going to make a lot of money this time next year.
 
Phreaky said:
With AMD having the next generation consoles hardware locked up there is zero chance they go under, Sony/Microsoft wouldn't let them. That alone is worth investing in them, especially as they seem undervalued at the minute given this fact.
Click to expand...

Thats a bit naive to be honest, companies have very much been killed off by short term issues even with very rosey futures. Companies like Sony, etc. might decide its less costly to drop all dependancy on AMD and start from scratch with another company for instance - one of the several reasons their share price has dropped out is due to companies with an investment in them stating on record that if it came to it they'd rather see AMD die than put their own company at risk in order to prop AMD up. While the predictions of their bankruptcy is very much sensationalised in the press their short term cashflow issues are serious and very real - even taking the articles on it with a large dose of salt still shows them in a very unhealthy and risky position.

Bacon? said:
Tempted to buy some shared in them myself ;)
Click to expand...

Potentially not a bad idea, good chance of making significant long term cash without losing too much if it does all go **** up. As humbug said some people are likely to make quite a lot from this if AMD doesn't go under (not inferring that they will).



One of the most frustrating things about this - back in the day 2005-2007 or so one of the things I respected the most about AMD was that they had some very very good business people who kept the company afloat and healthy despite constant attacks from other companies especially underhand tactics from intel and the likes (many companies would not have survived)... but in more recent times many of these people were hamstrung by management, marginalised to get "yes men" into their positions, etc. and to be honest a lot of the problems AMD are going through at the moment are problems they've brought on themselves.
 
Last edited:
The Key is to monitor in whatever way you can whats going on, if you know AMD are in Nintendo / Microsoft / Sony and you can see they are selling well the chances are AMD will post good revenue results the following quarter and put it down to successfully breaking into growing markets.

Be that as it may watch AMD's shares rocket in value virtually over night, be there at the first minute of trading.
 
Even if they go bust, someone will buy the tech cheap. After wiping all the debt and costly infrastructure out, then add in some big orders for the Xbox 720 and PS4 then you have a pretty good business.
 
SkodaMart said:
tablet PCs and games consoles :(
Click to expand...

humbug said:
Thats the future, bleak isn't it? :(
Click to expand...

V F said:
More like depressing.
Click to expand...

Ive been a pc gamer for 18 years now and my best moments has been playing games on my various pcs that I've custom build. I would be so sad if all that went away because the "normal" folks want a damn tablet instead.. You cant play a proper shooter or RPG on a darn tablet!!!! ITS BLASPHEMY!!

Then again a lot of gamer devs are using Console Systems for their pc ports, such as the stupid Matchmaking without Dedicated servers or aim assist on a freaking keyboard and mice. Everything is going south :( but then again we are most likely not gonna live through the solar flare or whatever on December 21 unless your name is Chuck Norris.
 
Last edited:
Some good news for AMD, but it isn't going to please Phixsator ^^^^ :D

Advanced Micro Devices Inc. announced that it is supplying custom AMD Radeon HD GPUs to Nintendo's newly-launched Wii U home consoles. This custom graphic processing unit (GPU) will enable Wii U to support high-definition (HD) video for games.
Click to expand...
The Wii U is Nintendo’s first offering with HD graphics. Moreover, this is the first console upgrade by Nintendo in six years since the release of Wii. Gamers appear enthusiastic about the new console, as evident from the fact that Wii U is already sold out in many U.S. stores. Research firm IHS is also optimistic, expecting Nintendo to sell 3.5 million Wii Us in the U.S. this year. Obviously, the success of the Wii U will benefit AMD
Click to expand...
I have absolutly no idea what profit AMD make from each GPU that ends up in each Wii U,but if (what seems perfectly reasonable to me) AMD get $10 profit from each GPU sold with the Wii U, its $350m,- this year they say? Thats about the same amount of profit they have made in the last 2 quarters put together.

Sony is next with AMD based PS4's already sent to devs.

http://www.zacks.com/stock/news/87393/amds-hd-gpu-for-nintendos-wii-u
 
Last edited:
I am sure they aren't going to go bust.
They wiill carry on making low cost chips for consoles and such.

There not likely to ever challenge Intel in the desktop arena again but that market is shrinking fast anyhow.

If they have won contracts to supply chips for the next gen consoles then good for them, that will help the balance sheet.

I personally don't like that idea at all though as it means low performance next gen consoles.
 
PCZ said:
I am sure they aren't going to go bust.
They wiill carry on making low cost chips for consoles and such.

There not likely to ever challenge Intel in the desktop arena again but that market is shrinking fast anyhow.

If they have won contracts to supply chips for the next gen consoles then good for them, that will help the balance sheet.

I personally don't like that idea at all though as it means low performance next gen consoles.
Click to expand...

As opposed to what? Intel's IGPU is pathetic and Nvidia's low end GPU's are just as bad as that.
 
PCZ said:
I expect new consoles to push the envelope performance wise.
They stay on the market for many years.
Click to expand...

yeah, but its a lot of power in a small box with minimal cooling, look at the xBox360 and how hot that gets despite sounding like a jet engine.

That had an ATI 1950 256MB, or some rubbish like that, the 6670 might not be all that but its many time more than what was in the 360 and PS4.
And will no doubt run cooler.
 
Think about the performance of the 360 relative to the PC's when it launched.
It was quite good.

The new consoles will not be so far up the ladder compared to currently available PC's if we are correct about the hardware that will be in them.

Since there likely to be on the market for a long time then it means even darker times for PC gaming.

If they use x86 hardware then it could be seen as a good thing.
If devs can be bothered or are allowed to enhance the PC versions.

Anyhow this thread has taken several twists in the road and needs to get back on track.

I feel that Intel would bail out AMD rather than see them go under.
The last thing they need is to be seen as a monopoly.
 
Last edited:
Intel already bailed them out with a hefty court pay out a few years back, share price rocketed at the time. Just after I bought Intel :o

Intel yielding 4.5% now which is pretty tasty for not that much risk. Its basically the same case as 2009 which is too cheap imo, they arent worse off. World GDP positive, Im sure they'll be ok and AMD so long as their products are popular in Asia or anywhere real growth exists.

The desktop market is over, is OTT
They are behind on phone chips but got no disadvantage in small laptop type devices and soon they'll reduce to 22nm which means brute force and size efficiency will be in their corner again even on sub laptop sizes.
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom