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
Laurijan
if every person on earth (about 5 billion) donates one dollar to AMD is would still be not more worth than Nvidia - sorry for fanboyism - but ill go for what is better - or would you take an ugly looking girlfirend just because you have pitty with her over a good locking which wants you too?
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#2
InnocentCriminal
Resident Grammar Amender
jpierce55 said:
Actually Intel likely faces a split if ATI/AMD failed, it just depends on if they get ruled a monopoly, but they would likely have to separate some components of the company. I doubt they want AMD to fail completely, but would like to hold them down.
Even so, I highly doubt they'd buy into AMD just so they can keep them being fined even more money. I highly doubt AMD will go out just yet, it's got some interesting technologies and even if they did, they'd probably stop fabricating CPUs and sell their brains instead.

All I'm saying is, I find it hard to believe Intel would invest in the competition, even if it did bring some positives qualities.
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#3
alexicore5000
if AMD do go down then thats going to do wonders for intels already huge market share, this in turn will make it even harder for new competitors to come into a market with already a seemingly impossible entry! competition drives innovation (i think somebody said that earlier) and without innovation will we be forced to use half-arsed technology indefinately? if new competition comes along they will undoubtedly be using old(er) technology (copies of AMDs etc) until they have the funds to research (or buy it lol) but that would take years - but without serious competition Intel may well have stagnated by then!
gotta love hypothetical situations based on current events
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#4
InnocentCriminal
Resident Grammar Amender
alexicore5000
gotta love hypothetical situations based on current events...
I'd want Samsung (which was rumoured) to buy AMD. That would put Samsung in a great position, but this time, I don't see the fat cats of AMD allowing an far-eastern company to buy it, even if it is in need of some reinforcement.

Some people say it's the beginning of the end, but I don't think so. AMD have some interesting technology away from the new Phenoms which I think could be their trump card.... yeah I'm talking about 'Fusion'.
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