$5.04
0.21 (+4.35%)
Advanced Micro Devices, Inc. (AMD)
CAPS Rating:
The Company is a global semiconductor company with facilities around the world. It provides processing solutions for the computing, graphics and consumer electronics markets.
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Kaskoosek: 99.89
The company isn't making money and we really don't know when it is going to make money again.
AMD manufactures cpus and vga cards. The technology alone should be worth billions. I think Mubadala did a genius move even if they are loosing money.
AMD Market cap is 3 bn. Intel Market cap is 84 bn with better cpus but the technological difference is not huge. I can still do everything with a pc that has AMD inside of it.
On top of that they also have VGA cards on par or even better than nvidia. This company would never disappear because the whole world would pay the price since Intel and Nvidia would sort of become monopolies. With some help from the Arabs "favoritism" in the region this company could prosper again.
I am expecting AMD earnings to turn positive very soon. Shorts, you are going to be slaughtered on this one.
The recent lineup by AMD is beyond phenomenal.
The R&D department needs to be given the nobel prize. The new cpus and vga cards are beyond phenomenal. Each component is outperformin its counterpart in NVDA and Intel.
Funny thing is that each of these companies is trading higher than AMD. Intel for instance is trading 40x the marketcap of AMD.
I do not care about current earnings, all that will change soon.
Advanced Micro Devices, Inc. Introduces 45nm Quad-Core AMD Opteron EE Processor
April 22, 2009
Advanced Micro Devices, Inc. announced that it has introduced the 45nm Quad-Core AMD Opteron EE processor with the Company's x86 quad-core server power band. The new 40W ACP processor is designed for very dense data center environments such as those built for cloud computing, web serving, or other highly dense environments. It offers a full suite of virtualization and power management capabilities.
http://moneycentral.msn.com/news/ticker/sigdev.aspx?Symbol=AMD
http://online.barrons.com/article/SB124232227208920301.html?ru=#mod=barrons_msnhttp://online.barrons.com/article/SB124232227208920301.html?
Great point but I would point out that something is going on with AMD - the stock has doubled in price from a low in the $2's. They have compelling new products coming to market and I think Intel will lose the two antitrust suits - US and Europe...doc
1st of all, this company can't execute any more. They pretty well failed to deliver on their last 2 product cycles of microprocessor. That means they had orders, were going to be used by numerous hardware manufacturers, and at the last moment had to say, "Sorry, guys, our processor DOESN'T WORK and so we can't ship it to you in time."
Those hardware mfgrs then have to go to Intel at the last minute, and pay top dollar for the dregs of the supply chain that other, more astute mfgr's optioned years prior.
Once could be forgivable. Twice is not. If Intel has a monopoly, it's because AMD handed one to them on a silver platter with their poor execution.
Second, monopolies often arise as a sector turns the corner and heads toward shrink and extinction. The large, quad-core 45 nm microprocessor is not a growth market. Smaller, slower embedded processors - "chipsets" in mobile devices - are the growth market. AMD has not positioned itself to enter it. They are struggling with Intel for a slice of an ever shrinking pie.
Third - how, how can you talk about AMD and not mention their balance sheet? They are drowning in debt. Their annual debt servicing payments will soon exceed their market cap. Even if AMD was the monopoly and made the best processors ever, plus free magic flying unicorns for all, they'd be challenged to earn their way out from under their horrific debt pile.
You are right, their balance sheet does not look too good.
However, this is a high risk high reward bet here.
If the company breaks even at zero net income, we will see a considerable up-tick in the price.
A country like china or the UAE, would love to buy this company even with the considerable amount of debt. There are a lot of synergies that you are taking for granted.
The technology is worth billions of dollars, and countries with big reserves that want to improve technologically would be getting a bargain. One big project alone could be worth the whole market cap of AMD.
I need to see some positive earnings before getting into this one, but I do like the products they are coming out with. Their Quad-Core and Phenon processors look like solid products.
Is this a company you buy on the dip? What do you wait for it to hit? $2? $3?
www.ShootTheBears.com
You keep talking about the company's operations as if they were going to turn around. They may very well do so - and that'll be great. For the bondholders. Common will see none of this benefit for 10-15 years. The company is 300% leveraged, they have 3x more long term debt than they have market cap. The only thing the common holders are going to be able to do is prevent the UAE or China from paying off the bondholders and taking the assets - no buyer in their right mind would offer a dime for a share of AMD common unless the debt was wiped out.
Strong words ikkyu2, and thank you for them. I personally love AMD products, and the majority of the small circle of computer nerds that i know like them. Still, debt it debt.
Yet truly, one big project . . . .
ikkyu2
"The only thing the common holders are going to be able to do is prevent the UAE or China from paying off the bondholders and taking the assets"
Exactly my point. Look at enterprise value, it is actually pretty low.
Long term debt is 5.2 bn.Cash is 2.5 bn.
Market Cap is 2.5 bn.
So they can buy the company at a measly 5 bn, which is enterprise value. This is still cheap for a company like AMD.
I will agree with you on some thing though, the june numbers were disastrous.
Does anyone care about AMD anymore?
When Intel is the leader in CPU's and AMD makes the exact same processors, why not just go with intel. I could see if they were faster, and somehow special...but..
If you can get a BMW for a few bucks more, why bother with a KIA?
Of course we still care about AMD. Competition is critical to drive development of new technology and control prices. There used to be 5x or so viable computer processor architectures and manufactures. That has now dwindled to effectively one style of architecture and two active manufacturers with one on its death bed.
A company with no viable competitors has much less motivation to advance its technology if it can maintain its market share by simply sitting idle and churning out yesterdays achievements.
I do not have high hopes for AMD's stock price. However, I sincerely hope the company finds a way to flourish and compete effectively.