i wanna see your view on this but research and development is very important. theoretically to match intel's expenditure on r&d alone, would be pushing it for amd. regardless of how much marketshare they are able to capture, will they be able to sustain it ? i personally like AMD's chips and i dont exactly know the reason for why its been tanking, but i suspect something microeconomic.
I'd love to see AMD drop below $6 so I can add to my large position. I love when the stocks I want to own go on clearance.
I think it's going down more - their processor suck compared to the intel and dell is fading them out of their line of computers.
Now that, i respectfully disagree with. Yes, it probably will go down more, assuming the market goes down more, but their CPU's most assuredly do not "suck." But differences of opinion are what makes a horse race. Feel free to short AMD. In my opinion, AMD, even though they are not currently in the black, will return more in percentage over roughly the same time period, if bought at present price, or preferably under $6, than will INTEL, if bought at its present price. But you will have to have patience and trust that AMD is not going out of business. If they get cheap enough they could become a takeover target. Bottom line for me is that their CPU chips are very, very good. Certainly as good as INTEL's, arguably better, and the price is right. AMD is cheap not because their product is bad, but because they are financially spread thin due to their acquisition of ATI, and also because we appear to be going into recession. In the long run, i think that purchase of ATI makes sense. I have very little AMD, but i will buy more if the price is right. I mean if they want to give the stock away, i'll be there to scoop it up. Will i bet the farm on AMD? Of course not. I certainly do agree with ByLo's remark that the computer manufacturers don't want a sole source for their CPU's.
Dell is NOT phasing them out of their computers. They are actually going to be expanding their use in their retail segment of PCs. http://www.internetnews.com/ec-news...ite+Glitch+Sets+Off+AMD+Abandonment+Fears.htm "As it turns out, the reports were partly accurate, but could have used a few extra details. Dell is shifting the emphasis of AMD retail/consumer product to its new retail strategy by putting most of its AMD-based machines in retail outlets like Best Buy, Wal-Mart and Staples, according to Dell spokesman David Lord. "We always want to deliver best value to customers, so it's just a matter of how we merchandise them," he told InternetNews.com. "A good majority of consumer AMD systems are being moved to retail but they will still be available direct. It's about delivering value to customers, which is price and technology." ' But hey, if people want to believe the misinformation, fantastic. It will get me a lower entry point in accumulating more AMD shares.
Well now there is a rumor that UWisc is suing intel for C2D architecture patent infringement of some sort... So many damn rumors in this industry...
AMD closed at $6.34. DELL said it has stopped selling most consumer systems that use AMD chips on its web site. Goldman say's "We do not believe AMD's equity is fully reflecting the risk of an AMD bankruptcy." Abu Dhabi purchased a $622 million dollar stake in AMD on November 16th, 2007. AMD March option implied volatility of 79 is above its 26-week average of 60 according to Track Data, suggesting larger price movement
@ what price would you buy? i certainly do see your logic here. also it turns out AMD spends a bit more on r&D than intel. so is ATI the only woe for AMD/ i personally prefer amd chips over intel. but intel is just tearing it up. i think intel is a very good company, historically they have weathered storms well. amd, could it be undervalued ? who knows aquisition might come soon, but the only thin i worry is, as you mentioned by "financially spread thin" will this company go under?
Under 6 the risk to reward ratio is very favorable. There are no guarantees in life, but i would think it very remote that they would go under, as there seems to be those interested in supplying capitol. They are making top notch, very advanced chips. What will very likely happen is that their customers will make sure that they buy enough AMD chips to keep AMD in business. The idea of a sole source for computer CPU's is a nightmare to OEM's.
i certainly do hope amd pulls through. it'd be a shame if it went under. i need to know how to evaluate the bookvalue of this company....this is what i have recent trouble with maybe due to lack of accounting knowledge