Advanced Micro Devices, Inc. (AMD)

I've heard it all before.

Intel is awesome. AMD runs hot. AMD crashes. AMD are not good for servers. The list goes on and on.

Anyone remember the Athlon Series? How many of you owned at least one?

Yes, I do admit recently AMD's products have been less than Intel's in some ways, but I think that will change.

Not to get too technical, but AMD's system for quad core has pulled ahead of Intel. (For you nerds/EE's/fellow CMPE's out there...compare if AMD quad core chips need to ever touch an off chip bus to communicate with one another) AMD will have the ability to come into the OC market again, which is what fueled them through the early 2000's.

Also, while I cannot comment on Intel's tech support, when I had an issue with my AMD chip several years ago, they replaced the chip hassle free; even though the damage to it was mostly my fault.

AMD and Intel have always been intertwined, which as been a great benefit for the consumer. The fact they are in direct competition has caused the prices of computers to fall. One's stock is up, the other's is down. And I believe that they will continue to fluxuate into the future.

Its AMD's time to be up.

AMD is on life support and has been for years. Although they do come out with an innovative product every few years, INTC quickly stomps them back down a few months later.

I use AMD in all my computers and it excells far above Intel. I own the stock and I did not sell it last year at $40. I am prepared to hold it to go up over $40 this year or early next year.

This is a contrarian momentum play for me. I like AMD, and right now the market seems not to. Rather than follow that trend, I am betting that at some point in the next five years, AMD will "shock and awe" the industry somehow and everyone will come running, causing the price to surge. In the mean time, I have no idea what to expect from the stock price. I aim for a sell point of $40 sometime before 2009. If the price drops more without substantive cause, I just might buy more.

Risk is moderate, depending on how you define it. The chance of shares going belly up is very low. The chance of $20 being the all-time low for the next three years is also very low. However, I don't care what happens to the stock price until I am ready to sell it. (In fact, as Tom Gardner preaches, if you've done your homework, you'll find yourself hoping the stock price goes down in the short term, so you can buy more shares at a discount.)

If you wait for the good news to buy in, you miss the boat. So, I choose to buy now at close to a 52-wk low in anticipation of a change in momentum down the road.

In case it is not already obvious, I am not a computer wizard. I don't know much about the technical details of AMD's processors. I do, however, understand that Wall Street has a tendecy to be rather short-sighted about things, and if you are patient enough to have a long-term outlook (think hundreds of weeks rather than hundreds of days), you really can find steeply mispriced stocks and profit tremendously from that patience.

This pick will likely sit in my "loser" column for months, and I am okay with that. One day, maybe as soon as 2007 or 2008, I will be delighted by a nice, fat profit.

That's how it goes in my head, anyway. Time will tell...

I bought this stock at $3 in November. AMD's current balance sheet then and now does not reflect the realities of its situation. The spinoff of The Foundary Company wiped the debt off AMD's balance sheet, and with the acquisition of ATI a few years back, are in a better position than Intel to make a run at combined GPU/CPU chips.

AMD is a dual play on CPUs and GPUs. Tech is overbattered and primed for a recovery. The spinoff of the chip foundaries mean the most cost inefficient part of the buisness is not an issue anymore. AMD can focus on what they do best: design awesome chips.

Using Ken Fisher's super stock method, this is a super company that has taken an overbeating in stock price. They will recover from their mistakes. This stock trades in the $15-$20 range in a good economy.

GOD told me atleast 77$ by Sept 11 and GOD DONT LIE>>>WHY?>>Cause he dosent have 2 ...AMEN-n-AMEN

It's interesting to see the All-Stars evenly split on this stock, yet it has one-star status. At any rate, I believe AMD was unfairly sold off on the last earnings report and that the downside is somewhat limited from here. Margins fell some as the company had to rejigger manufacturing to meet high demand for Turion notebook chips, but that's out of the way now and, after a 50% drop in the stock price since February, this looks like a good time to jump in.

Don't let the naysayers fool you - there's a lot of potential here. Intel is a favorite but there's plenty of room in the processor marketplace to sustain two massive producers, and AMD beats or ties Intel on many levels. The ATI buyout is definitely a positive thing, expect to see that bearing fruit by mid-2007. AMD has been a big part of my real-world portfolio for about seven years and will continue to be for the foreseeable future. And with the price so low right now it's hard not to recommend this stock.

Bought this for my real life portfolio. Appears to be a classic value play, trading at 52 week low, recently pummeled by the market, and has products coming out this year that will once again put it back neck and neck with Intel.
Not only that, but I use their processors in my own home built computers and the performance is outstanding for the money. Much better bang for the buck than Intel's processors.

I think AMD will continue to sink for a quarter or two - maybe a bit longer - as Intel's Core 2 gets all of the attention. But as others have posted, I think AMD is looking down the road, and it has great potential -- with the co-processor options, and now ATI merged in, I see a lot of long-term growth opportunity here.

I love amd and their cpu's, but I think the new intel conroe chip could swing the home cpu market share back towards them.

Despite AMD going through some tough times, they will eventually turn around. They still provide cheap alternatives to Intel and are about to close the 65nm-45nm gap. “Shanghai” and “Deneb” should bring back the competition and provide AMD a boost in revenue. AMD is also changing their manufacturing process to make use of IBM's Immersion Lithography, which should be more cost effective.

Dual Core Processors from Intel has put a dent in the Desktop Processor Market for AMD. It wont be long before AMD rolls out its new line of processors. Also, AMD processors for Laptops are still doing good. With DELL as its newest customer it sure will bounce back from the oversold state of its stock. The Initial reaction from Market showed how short-sighted wallstreet Is.

Engineers of AMD have a new brilliant and revolutionary idea. Together with ATI they'll bring the CPU and GPU on the same chip. But this is just the beginning of a new era. In near future they will probably mold a physic-engine, and any kind of accelerated units that your imagination allows, within a single chip. (Ref: AMDs analyst day at 14. Dec. 2006, presentation of Phil Hester, AMD's Corporate Vice President and Chief Technology Officer, http://www.amd.com/us-en/Corporate/
InvestorRelations/0,,51_306_14668,0
0.html)

This means no more FSB speed limit between CPU and GPU. After this fact was declared (actually much before 14.Dec), NVDA has tried an urgent counter attack, and announced a new NFORCE motherboard with 1033 MHz FSB speed in addition to its new 8800 GeForce serie. This however doesn't compensate the fascinating idea of hardwired CPU-GPU.

Similarly Intel's hurriedly planned 45 nm chips cannot counterbalance this revolutionary idea. In fact most of the end-users will not even have interested about the nm scala of these chips.

If the system intelligently optimized and perform better, it should sell better. Marriage of AMD and ATI is something more than targeting the game and multimedia market. With this new concept, they will change the rules. They will redefine the art of computing and they will break the new speed limits.

Imagine how the motherboards will shrink. And imagine how AMD will invade the laptop market. Hardware that we add on today's motherboards, or some addons like on board vga's will be shifted from the surface of motherboards into the processor. This means however means cheaper laptops, cheaper motherboards, but more apportionment for AMD since it offers more functionality on its chips.

In long term this means motherboards will be cheaper, but AMD chips will be sold for higher prices, because on their chips they will bring more than multiple-cpu's. They will cancel the need for graphic cards, or on the board vga's. And in future, they will probably cancel the need for basic audio functions, they can easily bring physic -engines for gamers, etc. etc... Possibilities are limited with your imagination.

With the $1.25B settlement, AMD will be able to payoff a good chunk of it's debt (originally about $3.7B) hence improve their Balance Sheet.

With their agreement for a new 5 year cross licensing deal with INTEL, Globalfoundries now no longer needs an extra license to manufacture any processor using the x86 Architecture.

With the fair business agreement they both accepted (though terms not known) there's a possibility that AMD will gain momentum and gain market share (hopefully). Which is not considering their ATI side which cleaned up nice this winter since NVIDIA won't be introducing FERMI until Q1 2010.

Lastly, as mentioned earlier ATI is known as the current "best in class" for GPU production (until Fermi shows up). If AMD can speed up the release of their APU LLANO then I have a feeling that they'll be able to clean up nice compared to Intel's Arrandale.

It's still a bit speculative, but I believe that with the economic upturn, settlement payment, and new executives, they can make it happen.

The next year will be ugly for AMD. I rode AMD puts from 29 down to 21 this summer, and am looking to do the same again if it gets above 26.

For the past 2 years, AMD has benefitted from Intel's lousy product lineup. That situation is now reversed. Intel's new product lineup wins in every measurable aspect: performance, price, and power consumption. A look at each company's roadmap makes it clear this will continue for at least the next year. Intel still has a strong brand, and history has shown AMD suffers immensely when faced with the competitve onslaight Intel is currently unleashing.

AMD's main business is its CPU production. It has enjoyed superior cost performance over Intel for the past few years and has become the enthusiasts' favorite, but its Opteron has yet to intrude Intel's stronghold of the server market. While things looked good on the surface plans for the next generation Athlon processor was scratched as the project leader left AMD. The only new processors on the horizon are incremental updates on the current architecture.

Meanwhile, Core 2 from Intel blew away the cost/performance ratio of Athlon64s and even power consumption efficiency. AMD reacted by cutting Athlon64 prices by half but benchmarks showed even that was not enough to match Core 2.

The merger with ATI at first glance seems like good synergy. GPU and CPU sharing circuits makes sense, and ATI fans would stick to AMD. Yet any proposed architectural changes involving the interaction between the GPU and the CPU is not a simple task. Sharing of architecture, developer knowledge, and R&D style would require significant time.

In the long run AMD invested for the future by acquiring ATI, but in the shorter term it may be more of an act of desparation, as 50% price cuts show. As Core 2 sales grow Intel shares will grow in server, workstation, home, and gaming usage. Intel is already coming out with new ideas for the next generation mobile Core. I believe things do not look peachy for AMD for a year or so until they come out with their new line of processors and strategy.

Dropped in 2006, will recover in 2007 with new products, new plants, Vista boost, etc.

Classic overaction, too cheap to pass up at this price!