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AMD appoints new CEO as losses continue
On Jul 22, 3:47 am, "geoff" wrote:
It isn't that simple. A programming language used by many customers had the same issues, to the point where the company put in its 10-Q how bad the market was and no one wants the product and there is no future for it. What really happened is they were bought by another company and the language is being happily used by many. The suggestion that there will be a big hole, once called AMD, is not reality either. Are you old enough to remember when there were at least five different companies making x86 CPUs? What happened to them all? They were going under, unable to compete with Intel (and AMD to some extent) and were bought by other companies who wanted the licenses to manufacture x86 CPUs with the Intel microcode. I remember that National bought one and after a few years of not knowing what to do with it sold it off again. I believe that was the unit that is now part of ASUS marketed as VIA chips. Another ended up with ST Micro which now makes very low end x86 CPUs for embedded work. None of these companies are making any product that is sold into the desktop/laptop market place in any significant manner. If (or should I say When) AMD is taken to the auction block it will likely be split up. Many of its assets are worth something in themselves, for example the foundries. ATI is another significant asset if AMD doesn't run it into the ground trying to stay alive. The CPU portion of its business may or may not fit well into anyone else's business model. If you ran a billion dollar company, would you want to pay even $0.10 on the dollar to get into competition with Intel??? I have been watching AMD as a stock for almost 20 years. I was able to pick three times in its history when it was down for the count and I was certain that it would be back on its feet in a year. I made significant money on this as did a few of my believing friends. But like others have said, they don't have any rabbits up their sleeve this time. There is nothing in the works that will let them compete again with Intel. They are a full process node behind assuring that Intel can undercut them and still make money. Every year AMD is losing money equivalent to the entire market cap of the company. They are going to start selling off assets to try to stay afloat. But they won't be able to borrow any more money and their days are numbered. Even if the economy turns around big time, they likely won't be able to pull up their average selling prices enough to make a profit. This can't continue long. Someone posted about the "long term" outlook for AMD... well we are all dead in the long run and AMD is likely dead in the short run. Oddly enough, the only feasible bailout for AMD is Intel! They won't want to be alone in the marketplace because of all the anti-trust issues. So they may find a way to funnel some cash into AMD, enough to keep them afloat. But I'm just speculating there. Rick |
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