AMD in trouble …

Monday, April 30th, 2007 @ 7:11 am | Electronics, Finance, Semiconductors

Well after a miserable first quarter with a giant loss, AMD looks like it is going to keep losing for the rest of 2008. ATI and AMD are both failing to perform and a miserably falling behind their competitors. AMD still does not have 65 nm products on sale in volume, and looks like it is just happy to live another day. Nvidia is dominating ATI in the discrete graphics market with AMD failing to release its latest generation of video on schedule. I have been a AMD fan forever. I have worked with Thunderbird, Palomino, Hammer and enjoyed all of them. I am an avid overclocker, and as much as these companies claim we hurt their sales I have sold more of their processors through word of mouth than any AMD advertisement ever did. I have spoken so highly of their products to people who thought a computer was a pentium. Now, I have to say I am disappointed. They have failed to execute so miserably I see them having more trouble in the future. They are cutting capital expenditures down, which to a tech company is akin to suicide. You don’t climb out if a hole when you are getting outperformed by spending less on research.

I fear AMD is going to be relegated to its old spot as the value supplier, which to shareholders means low margins and ASPs. I hear AMD is going to double their float in an effort to survive, and it is most likely going to be approved. To shareholders at this point, half of something is more than all of nothing.

 

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