Friday, July 17th 2015
AMD Now Almost Worth A Quarter of What it Paid for ATI
It's been gloomy at the markets in the wake of the European economic crisis. This along with a revised quarterly outlook released by the company, hit AMD very hard over the past week. The AMD stock opened to a stock price of 1.87 down -0.09 or -4.59% at the time of writing this report, which sets the company's market capitalization at $1.53 billion. This is almost a quarter of what AMD paid to acquire ATI Technology, about a decade ago ($5.60 billion). Earlier this month, AMD took a steep fall of -15.59%, seeing its market cap drop by a quarter.
Intel is now worth $140.8 billion (92 times more), and NVIDIA $10.7 billion (7 times more). Among the issues affecting AMD are decline in PC sales and stiff competition. However, reasonably positive earnings put out by Intel disproves AMD's excuse that the market is to blame for bad performance, and the company could slide even further, hitting its all-time-low at the financial markets. The company will host an earnings call later today.
Source:
Google Finance
Intel is now worth $140.8 billion (92 times more), and NVIDIA $10.7 billion (7 times more). Among the issues affecting AMD are decline in PC sales and stiff competition. However, reasonably positive earnings put out by Intel disproves AMD's excuse that the market is to blame for bad performance, and the company could slide even further, hitting its all-time-low at the financial markets. The company will host an earnings call later today.
136 Comments on AMD Now Almost Worth A Quarter of What it Paid for ATI
And wtf is with these anti fanboy posts i keep seeing, AMD goes down this shit hits everyone regardless if a fanboy from either side or not even one at all.
The Fury-X would have been the perfect 2015 parallel to the 2008 Radeon 4870, were it a $550 graphics card. Fiji is a cleaned up and improved Hawaii using an older die process, much like the 4870 did. The Fury-X uses a new type of ram, much like the 4870. The Fury-X for the most part matches the performance of nVidia's #2 graphics card, again much like the 4870 matched the GTX260.
Where AMD screwed up is pricing. Had the Fury-X launched at $550 it would have made both the 980Ti and Vanilla-980 pointless. Figure for $50 more than a 980 you get much more performance, and for $100 less than the 980-Ti you get close enough performance.
I don't think that a $550 Fury-X and $450 Fury would have helped in the short-term, but positive press would generate greater interest and sales. Like I said, had AMD looked for the same $450 that nVidia was asking for the GTX260, and offering the same performance, I know most would have gotten nVidia. Because it was much less expensive and was either equal or faster than the GTX260 AMD had a great few years because of one wise decision to price the 4870 at $300. I wish AMD still had a shred of common sense left.
And since the regular Fury is not that far behind, I would guess a $535-550 would suffice for the non X. Number of peple who buy high end cards to game on Linux is negligible.
Amd had been hit hard by the tablet/phone market making a huge dent on low end laptop sales, and driving down laptop costs. They never had a big market share in the corporate business machine market that has always been dominated by Intel. AMD is trying to make ends meet with the APU laptops but with everything else that goes into them, and in an attempt to keep prices as low as possible they suffer in profits. There also struggling against Intel's very strong i series branding. And while the APU's offer more in a lot of cases the cheap red and black logo against the more mature Intel logo is a no brainier to those that buy without knowledge.
What AMD need is a break into the business machine market. And a product that businesses want to use. They already have it with the APU but it needs to be brought into a format that offers more than what Intel are offering. And currently both companies are offering the same deal, Powerful base chip with excellent power saving features. AMD really need re-badging for the business sector with a mature image. The current red and black doesn't have that mature business feeling to it.
I personally believe that AMD is going to die. It's sad, but I see very little chance of them getting out of this alive, AMD has nothing to challenge Intel with and Nvidia knows that AMD is weak and will continue the bloody price war that they started with the GTX 970, with the final objective of forcing AMD out of the discrete GPU space.
After that, (high-end) PC gaming will get more expensive as Nvidia will continue slowly increasing the price of graphics cards. GTX 780 Ti, 980 and now 980 Ti have all gone for $650, beginning with Volta (or Pascal if AMD dies before it) I'm expecting Nvidia to start slowly increasing the price of their most powerful non-Titan graphics card closer to $1000, just because they can.
And what exactly is the link you show me? I don't find it relevant with consoles or x86 and even if it is, this article is from 11/2014. PS4 and Xbox One where introduced at the end of 2013. So the question is what did Nvidia had to offer at 2012? Looking at wiki, Tegra 3 and that's not an x86 SOC. x86 on all platforms (Xbox One, PS4, PC) makes game development cheaper and faster. The latest rumors say than Nintendo NX will also use AMD's chips, which makes sense because the biggest problem for the Nintendo consoles today is the lack of third party games. I think Sony and Microsoft know how to negotiate a deal. Also AMD was with its back on the wall. And both those companies knew it. So I am pretty sure they explained to AMD that they had many alternative options for their next gen consoles, and all those options where bad for AMD. So AMD would have to offer them a great deal from the beginning, to guaranteed that Sony and/or Microsoft would not turn to Nvidia and/or Intel for the main parts. I don't think AMD was willing to gamble it's future just so it can secure a better deal.
if its Liquid don't bother typing back
:rolleyes:
"With fanboys all over the place and wrong information given by reviewers and review sites, AMD is taking heavy shots." - Irony :laugh:
Invest less in your marketing and more into (enthusiast level) substance for your products.
- Consumers Wow... with respect, you really have no idea.
(I'd elaborate this second, but, I'm mobile and it will take more than I want to give to hash it out on my phone.. sorry to be so terse)
Game over is it? Time to get that stock while it's still affordable is more like it. ;)
If they weather the storm, I think a pretty penny can be had in say, 5-10 years time?
I will discuss this with my Broker, Tuesday. He's the smart one with the money. I come up with ideas and he figures out how to make me money. I didn't do what he said, once. Lost my hat.
Since then, he's made me some money back. I will let you all know, perhaps, ;) what he says.
:lovetpu: