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

#26
WhiteLotus
DanTheBanjomanSure their share is growing but IE is still dominating.
looks like Fx is going to overtake them in '09-'10 at that rate.
Posted on Reply
#27
keakar
crow1001What 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.
well said.

trying to support a company that has nothing to offer as real competition to intel is silly.

what, you help pay the light bill this month but what about next month????

AMD abandoned its customers and the market they served by trying to compete head to head with the 800lb gorilla (intel), the customers did not abandon AMD they just have nothing that makes sense to buy. AMD should have stoped trying to beat intel and just kept building quality products that offered customers a much cheaper alternative product that could still do the same jobs. loyalty is nice but when spending money you need the best results from the money your spending. if a corvette only cost $2000 more than a ford economy car then which would you buy, or should i say which would make more sense to buy?
Posted on Reply
#28
newbielives
AMD underpriced? Should it not be worth atleast as much as NVidia at the moment.
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#29
Deleted member 3
WhiteLotuslooks like Fx is going to overtake them in '09-'10 at that rate.
Not really relevant. In this sector companies grow large in no time and disappear even faster. Looking 2 years in the future is nearly impossible.
Posted on Reply
#30
ghost101
Lol at people thinking they are capable stockbrokers.
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#31
Jimmy 2004
ghost101Lol at people thinking they are capable stockbrokers.
You should all be investing in TPU ;)
Posted on Reply
#32
mdm-adph
DanTheBanjomanNot really relevant. In this sector companies grow large in no time and disappear even faster. Looking 2 years in the future is nearly impossible.
So, you're saying that in two years Microsoft could be bankrupt and forbidden to sell their product to anyone, leading to a majority browser share for Firefox? Somehow I don't think so. No one can know the future, but for what it's worth, we can definitely make somewhat reasonable predictions as to what the computing field will look like in 2 years.

My prediction: Firefox will continue to gain browser market share, perhaps even reaching parity with IE's share, due to the increased usage of web-based applications, and the corresponding usage of Firefox amongst the developers creating those web-based applications (I don't know a single web designer who isn't using Firefox anymore). So there. :p

Now, if you'd said 10 years in the future, I'll agree with you -- that's impossible to predict.
Posted on Reply
#33
xvi
keakarif a corvette only cost $2000 more than a ford economy car then which would you buy, or should i say which would make more sense to buy?
With performance per watt in mind, many would buy the Ford economy car. Would you rather buy four power-hungry Intel processors, or five power-efficient (and usually cheaper) AMD processors? This is AMD's strongpoint in the server market and it looks like they're trying to drive that point home again with their boatload of new K8 processors.

(For the record, I drive a '91 Ford Escort. 35 MPG FTW)
Posted on Reply
#34
suraswami
xviWith performance per watt in mind, many would buy the Ford economy car. Would you rather buy four power-hungry Intel processors, or five power-efficient (and usually cheaper) AMD processors? This is AMD's strongpoint in the server market and it looks like they're trying to drive that point home again with their boatload of new K8 processors.

(For the record, I drive a '91 Ford Escort. 35 MPG FTW)
What will be more effective is AMD should spend more money and do aggressive marketing of those low watt Desktop and server class procs in countries where Electricity is expensive. The countries where it is already hot and don't need a room heater.

India,
Most countries from Asia, Africa and south america.
Posted on Reply
#35
brian.ca
ghost101Lol at people thinking they are capable stockbrokers.
haha, that always makes me laugh too.

But looking at AMD's stock info and history wouldn't their value at the time of the merger only have been slightly less than double what it is now? Actually looking at the numbers it seems like the stock value dropped more in the 2 months prior to the merger than it has in the year and half since. While it's an interesting tidbit that their value dropped to less than what they paid for ATI the idea of it as a story seems to be somewhat out of or lacking context.
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.
If there's any value to doing a true quad it'll probably have more to do with the business side of things and will won't be realized until triple cores come out. But the point of the post you were responding to was that AMD/ATI are obviously not trying to reverse engineer anything since they're doing things differently. He wasn't saying that ATI developed 10.1 but they were the first to make a card that could handle it. Regardless of how far off it may be from being a standard it is still direct x. If it's not in use now it will be eventually. If Nvidia is not including it on their new cards what are the chances that they're refusing to plan ahead vs. them just not being able to do yet?

Also iirc I think that MS acknowledgment you referred to happened to be at an Nvidia sponsored event lol.
Posted on Reply
#36
JC316
Knows what makes you tick
I have to say that AMD has screwed themselves on this one. They are focusing on mid range items at a cheaper price than the competition. The problem comes in that me as a consumer, will pay the extra $20 to go Intel, when Intel has a chip that is guaranteed to overclock to at least 3.2GHZ.

AMD's strategy would be fine if they had more prebuilt computers using their Phenom chips. Since Intel has most prebuilts in their pocket already, AMD needs to focus on a chip that allows for overclocking to make the consumer, rather than wholesaler, the primary target.
Posted on Reply
#37
Deleted member 3
mdm-adphSo, you're saying that in two years Microsoft could be bankrupt and forbidden to sell their product to anyone, leading to a majority browser share for Firefox? Somehow I don't think so. No one can know the future, but for what it's worth, we can definitely make somewhat reasonable predictions as to what the computing field will look like in 2 years.

My prediction: Firefox will continue to gain browser market share, perhaps even reaching parity with IE's share, due to the increased usage of web-based applications, and the corresponding usage of Firefox amongst the developers creating those web-based applications (I don't know a single web designer who isn't using Firefox anymore). So there. :p

Now, if you'd said 10 years in the future, I'll agree with you -- that's impossible to predict.
Not saying they'd be bankrupt, though they could always take a serious hit. Besides they're active in many areas so they're pretty safe. However in 2 years IE could be a lot less popular, or Firefox could be gone.

As for webdesigners using Firefox, they're really bad at their job if they only use a single browser.
Posted on Reply
#38
3991vhtes
Good luck staying in business, AMD
Posted on Reply
#39
mdm-adph
DanTheBanjomanNot saying they'd be bankrupt, though they could always take a serious hit. Besides they're active in many areas so they're pretty safe. However in 2 years IE could be a lot less popular, or Firefox could be gone.

As for webdesigners using Firefox, they're really bad at their job if they only use a single browser.
Ugh :wtf: Nowhere did I state that they were using Firefox exclusively, but they are definitely using it as their main browser. (The combination of Firefox+Firebug is pretty much the #1 toolset used in web design today, unless you're working in some .NET shop where you do what Microsoft tells you to, and little else.)

Sadly enough, Firefox has had an easier time making inroads than AMD has -- maybe they need to start making processors that fit in Intel's own slots again. :p
Posted on Reply
#40
jpierce55
No AMD/ATI= Only Intel/Nvidia. And then I wonder what happens with monopoly laws when you did not intentionally kill the competition.
Posted on Reply
#41
Kreij
Senior Monkey Moderator
jpierce55I wonder what happens with monopoly laws when you did not intentionally kill the competition.
Nothing. It is not illegal to be a monopoly. It is only illegal to use that advatage to unfairly crush any competition.
Posted on Reply
#42
mrmonk
crow1001What 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 wagon 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.

.
lets look towards the future. This is what i am thinking at the moment that's if they sort out all the bugs and so for Barcelona and phenom

Amd

True 4 core 65mm

Take the mcm approach

8 cores on 65m


mcm again

12 cores or so on 45mm


mcm again

16 cores or so 32mm

and so on

SO when intel starts developing true quad cores if i am correct which will be sometime next year amd will have the upper hand with the mcm route as they have already a true quad cpu


correct me if i am wrong or if this is not at least possible in the future


p.s Not a fanboi got a intel quad and amd 6400x2

peace
Posted on Reply
#43
PVTCaboose1337
Graphical Hacker
I am quite sad that AMD is having trouble, but if they do, hopefully they will pull out of it or even better they cream Intel.
Posted on Reply
#44
Solaris17
Super Dainty Moderator
mrmonklets look towards the future. This is what i am thinking at the moment that's if they sort out all the bugs and so for Barcelona and phenom

Amd

True 4 core 65mm

Take the mcm approach

8 cores on 65m


mcm again

12 cores or so on 45mm


mcm again

16 cores or so 32mm

and so on

SO when intel starts developing true quad cores if i am correct which will be sometime next year amd will have the upper hand with the mcm route as they have already a true quad cpu


correct me if i am wrong or if this is not at least possible in the future


p.s Not a fanboi got a intel quad and amd 6400x2

peace
and sun microsystems cam out with a 16core sparc processor a little more than a year ago....me and danthebanjoman talked about it at the time.
Posted on Reply
#45
Davidelmo
Batou1986i 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
But who cares about technology? I don't.

I care about performance, and I want bang for my buck. I bet that statement represents the vast majority of users on this site.

I don't care if it's a TRUE quad core or a 386. If the 386 is better performing, then i will get that.
Posted on Reply
#46
mrmonk
Solaris17and sun microsystems cam out with a 16core sparc processor a little more than a year ago....me and danthebanjoman talked about it at the time.
Thanks or the info

Is that an x86 cpu or one that they have manufactured to be used within their sun blade systems.
Posted on Reply
#47
anticlutch
tigger69We 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.
That momentary boost in sales will do nothing to truely solve the problem... it would only serve to give them a quick breather. I'd compare that to nitrous oxide in a car... if AMD and Intel were cars (with Intel being significantly faster), nitrous oxide (AMD fans buying one chip each) would only help AMD keep pace with Intel for a while until that fanbase stops buying, at which point it will fall behind yet again. Weird analogy, I know :)

If I were Intel, I'd start assembling a team of the best lawyers money can buy (or add to their already high-powered lawyer team)... if AMD ever goes under and dies, Intel will get anti-trust lawsuits up their ass and then some :P
Posted on Reply
#48
imperialreign
FreedomEclipseIMHO I think AMD is better off releasing ATi & letting them function independantly rather then in each others backyard
Agreed! ATI were doing a lot better before the merger, and it only appears that AMD has put a stranglehold on ATI in general since then.

IMO, it'd be more beneficial (and also profitable) for AMD to maintain ownership, but allow ATI to function as it's own seperate entity.
Posted on Reply
#49
panchoman
Sold my stars!
tis a sad sad sad day for amd
Posted on Reply
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