Monday, December 10th 2007

AMD Worth Less than it Paid for ATI

More bad news for AMD I’m afraid, this time it’s in terms of company value. AMD’s share price dropped to its lowest for more than four years last week, leaving the company with a total value of $5 billion US – that’s $400 million less than it paid for ATI a year and a half ago. To put things into perspective, AMD’s main rival Intel is worth $162 billion, which is more than 32 times more than AMD. Meanwhile, graphics card competitor NVIDIA is worth almost four times as much as AMD with a company value of $19 billion. These are tough times for AMD, and it will be hoping its Phenom processors and its HD 3000 series of graphics cards can get it out of trouble, although the former has not been particularly well received so far.Source: bit-tech.net
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79 Comments on AMD Worth Less than it Paid for ATI

#1
cdawall
where the hell are my stars
the HD3000 series should be helping bring ti up...looks like a good time to buy AMD stock though
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#2
TUngsten
let's hope AMD/Ati can get something right in the next 6 months or they'll be likely gobbled up by the competition in one way or another
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#3
regan1985
i hope amd does get better not because i want amd cpus and gpu, i just want the best and having one company making everything for the market isnt good as they havent got pressure to research better things
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#4
mandelore
guess ATI should have purchased AMD :p j/k
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#5
Silverel
What sucks, is on the DIY-er and Enthusiast level, we make very little difference on the value of their company. Single digit percentages here. What they need is to bust open some deals with the likes of HP, Dell, ASUS, etc.. to get their high margin products in end-user boxes. AMD's value reflects its mass market sales, and right now, it's the bottom of the barrel pickings that are selling at all, not their top end.
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#6
Triprift
by: regan1985
i hope amd does get better not because i want amd cpus and gpu, i just want the best and having one company making everything for the market isnt good as they havent got pressure to research better things
Cant agree more there regan even tho im a Intel user and have been me whole puter life i dont like seeing amd struggeling like they are.
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#7
jydie
by: Silverel
What sucks, is on the DIY-er and Enthusiast level, we make very little difference on the value of their company. Single digit percentages here. What they need is to bust open some deals with the likes of HP, Dell, ASUS, etc.. to get their high margin products in end-user boxes. AMD's value reflects its mass market sales, and right now, it's the bottom of the barrel pickings that are selling at all, not their top end.
That is a very good point. I sure hope that AMD/ATI can get trough this rough time, because I like having the choice of CPUs and GPUs. Plus competition is always good for consumers. I have stuck with AMD and ATI for two reasons... I want to keep the underdog around and they have always had great value/performance ratios.
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#8
Jimmy 2004
by: Silverel
What sucks, is on the DIY-er and Enthusiast level, we make very little difference on the value of their company. Single digit percentages here. What they need is to bust open some deals with the likes of HP, Dell, ASUS, etc.. to get their high margin products in end-user boxes. AMD's value reflects its mass market sales, and right now, it's the bottom of the barrel pickings that are selling at all, not their top end.
Don't forget the server sector either - that's worth loads.
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#9
mdm-adph
by: TUngsten
let's hope AMD/Ati can get something right in the next 6 months or they'll be likely gobbled up by the competition in one way or another
This, to me, wouldn't be a bad thing, as long as whoever buys them keeps making freaking CPU's, so Intel won't gain an absolute monopoly.

by: Silverel
What sucks, is on the DIY-er and Enthusiast level, we make very little difference on the value of their company. Single digit percentages here. What they need is to bust open some deals with the likes of HP, Dell, ASUS, etc.. to get their high margin products in end-user boxes. AMD's value reflects its mass market sales, and right now, it's the bottom of the barrel pickings that are selling at all, not their top end.
That's the problem, though -- AMD gets those deals with Dell and HP, but Intel undercuts the price of their chips so much that the average consumer doesn't save anything at all by building a computer with an AMD chip. Try it yourself at one of the big pre-built manufacturers and see for yourself.
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#10
hacker111
AMD needs to get back in the groove and find there weaknesses and conquer them.
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#11
Nicksterr
It's their video drivers. Can they not see how poor they are? They need to start churning out more. That is at least for the video card portion of profits =p
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#12
Nothgrin
time for Micro$oft to start making CPUs?
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#13
Spunky
I'll probably take flak for this, but oh well... That's what happens when you spend all of your time reverse engineering the work of others. You fall behind and lose money.
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#14
Batou1986
by: Spunky
I'll probably take flak for this, but oh well... That's what happens when you spend all of your time reverse engineering the work of others. You fall behind and lose money.
i really don't see where you coming from on that statement as most amd ati stuff is technologically superior but somehow fails in real world application's

2 examples of how your statement makes no sense phenom quad core is an actual quad core chip not just 2 dual core chips on 1 socket.

and the hd2800 series runs dx 10.1 and sm 4.1 how could they be reverse engineering someones stuff when they develop it first as nvidia has yet to produce any thing up to par technology wise other than die reduction and pci-e 2

my point is you cant reverse engineer something you invent first
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#15
tigger
I'm the only one
We need to start a worldwide campaign for all amd fans to buy a cheap amd chip.if millions of people buy one it will at least put some more money in their coffers.
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#16
suraswami
by: Batou1986
i really don't see where you coming from on that statement as most amd ati stuff is technologically superior but somehow fails in real world application's

2 examples of how your statement makes no sense phenom quad core is an actual quad core chip not just 2 dual core chips on 1 socket.

and the hd2800 series runs dx 10.1 and sm 4.1 how could they be reverse engineering someones stuff when they develop it first as nvidia has yet to produce any thing up to par technology wise other than die reduction and pci-e 2

my point is you cant reverse engineer something you invent first
well said.

I fear that we are going to buy a OEM single core single chip celeron D which runs at mere 500Mhz for $400.:banghead: Soon I will be quitting this hobby.

What else is fun?

Ok I am going to start buying old cars and start fitting Turbo on those powered by Rocket fuel:roll:
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#17
suraswami
by: tigger69
We need to start a worldwide campaign for all amd fans to buy a cheap amd chip.if millions of people buy one it will at least put some more money in their coffers.
But how much will go directly to AMD?

Yesterday I almost bought a X2 and Abit board just for the heck of it. But my wife :nutkick: me and still searching one of those.
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#18
tigger
I'm the only one
I dont know how much of it would go to amd,but if enuff people bought one,it could help.
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#19
crow1001
by: Batou1986
i really don't see where you coming from on that statement as most amd ati stuff is technologically superior but somehow fails in real world application's

2 examples of how your statement makes no sense phenom quad core is an actual quad core chip not just 2 dual core chips on 1 socket.

and the hd2800 series runs dx 10.1 and sm 4.1 how could they be reverse engineering someones stuff when they develop it first as nvidia has yet to produce any thing up to par technology wise other than die reduction and pci-e 2

my point is you cant reverse engineer something you invent first
What use is a " TRUE " QUAD core if it cant even take on Intel's quads in the performance stakes, you can keep your true quads if that's all their capable of. Last time i looked Microsoft developed 10.1 not ATI, who jumped on the band waggon when they realized their new cards offered nothing new in terms of performance from the last gen, its been widely acknowledged by developers and even MS that 10.1 will hardly be used.

LMAO at peps sacrificing performance to keep a company in business, i go for the best hardware that's available at the time, if ATI/AMD go down, its their on fault, if they don't deliver the goods to compete with competitors, sink they will.
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#20
btarunr
Editor & Senior Moderator
Without competition between the market players, we'll never have great products at great price. The industry will stagnate. Remember the classic Microsoft Internet Explorer - Netscape thing? After Netscape dissolved, MSIE was stagnated throughout IE 4, IE 5, IE 5.5, IE 6 until the former Netscape code resurfaced in the form of Mozilla Firefox and gave IE a mucho nut-kick Result: IE7. Even today, Firefox is the most widely used browser in existence.
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#21
Silverel
by: btarunr
Without competition between the market players, we'll never have great products at great price. The industry will stagnate. Remember the classic Microsoft Internet Explorer - Netscape thing? After Netscape dissolved, MSIE was stagnated throughout IE 4, IE 5, IE 5.5, IE 6 until the former Netscape code resurfaced in the form of Mozilla Firefox and gave IE a mucho nut-kick Result: IE7. Even today, Firefox is the most widely used browser in existence.
Firefox '07 Market Share
Erm, not quite, but good point anyways. They're hovering around 15%...

Regardless, it does make a good comparison if you turn IE into Intel, and FF into AMD. Well, except that AMD isn't really gaining a whole lot of ground lately.
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#22
erocker
I thought it was a good time to buy AMD stock a few months ago!:cry:
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#23
FreedomEclipse
~Technological Technocrat~
by: cdawall
the HD3000 series should be helping bring ti up...looks like a good time to buy AMD stock though
it is not a "great" time to buy AMD stocks. & anybody who buys into AMD recently has more money then sense. AMD are currently too unstable for anybody to want to invest in their shares. If i was a stockbroker i wouldnt recommend that my clients buy AMD shares because its a huge risk/gamble (80% against) of losing money. anybody will be able to tell you that its going to be an 'iceskating-uphill' kind of struggle for AMD to regain its share of the market & everybody wants to make a profit. even AMD themselves.


with them holding the Future of ATi in their hands can be a good thing & it can also be a bad thing.

good thing is that if the CPU department does go into administration at least all of AMD's resources will be funneld into ATi so most staff will be transferd over to carry on working on GPUs instead of CPUs resulting in better quality graphics cards by ATi making ATi more competitive which I think it currently lacks.

bad thing is that AMD may take ATi's resources & try to administer 'shock treatment' to AMD making a last ditch attempt & actually trying to make a CPU that can stand toe to toe with Intels C2D's & if that does wrong then AMD & will go down & take ATi down with it.


IMHO I think AMD is better off releasing ATi & letting them function independantly rather then in each others backyard

so anything could happen.
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#24
FatForester
I have a soft-spot for AMD, but when a company shows a complete lack of competition, this is what happens.
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#25
DanTheBanjoman
Señor Moderator
by: Batou1986
i really don't see where you coming from on that statement as most amd ati stuff is technologically superior but somehow fails in real world application's
Contradictio in terminis

by: btarunr
Even today, Firefox is the most widely used browser in existence.
http://www.w3schools.com/browsers/browsers_stats.asp Sure their share is growing but IE is still dominating.
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