Advanced Micro Devices, Inc. (NYSE:AMD)

Quick, hide the vasoline. We don't need it anymore.

Since AMD hit rock bottom stock price around $2 it made it incredibly cheap compared to potential for profit. AMD began as an Intel clone and the tables are very much reversed, where Intel has been following in AMD's footsteps and then one upping the enginuity of AMD. However, AMD with the ATI graphics business and chipset packages has an end to end performance solution for any type of desktop, notebook, netbook. Their margins will begin to rise because of this. In the mean time Intel is alienating Nvidia, so their only choice will be to use AMD graphics, because Intel will not have comparable performance to AMD GPUs in the next 5 years.
The foundry spin-off is only making this all work financially, not the reason for AMD's future success.

I hold that AMD will return to profitability by Q309, barring further bad news for the economy at large. They will be buoyed by 40nm GPU sales and 6 core server chip sales in Q3, though Q2 will likely be rough with Nehalem Xeon chips shipping. For Q409-Q210, I expect that ZRAM for L3 cache (decreasing die area for a given cache size, allowing more cores per die), HKMG at 45nm and a new chipset with HT3.0 and later DDR3 support to keep them competitive in the server market. For Q310 and beyond, I see 32nm technology (Intel's and AMD's) as a major factor in valuation. News regarding Intel delaying 32nm tooling to save money is important. Finally, Bulldozer and the Fusion project are unknowns, and their success will depend upon software as much as the inherent strength of the hardware.

Enjoy being crushed by intel. Marketing speak that you are focusing your efforts in China may give you a small short-term stock boost, but it won't help the bottom line.

too much debt for the equity to survive and too little sales volume for operating profits not to nose dive.

bye bye AMD.

New hiring will spur the growth.

I am AMD loyal but with sales down and the less than stellar reviews on their newest offerings, I'll be keeping my eyes peeled for a few and just watching.

2nd best processor

Solid products...survived the earlier crash just as we all did...a day at a time...got yhe job done...I like them.

If you can break even, sell it and buy INTC.

First off, I love AMD (for being the perennial underdog, if nothing else). It therefore makes me sad to predict an underperform.
1. Bad Books: Huge debt, bleeding cash, etc... the usual arguments about the AMD balance sheet and income statements which others have repeated ad nauseum (quite justifiably). I haven't done the analysis myself, but it is the general consensus that the restructuring (with the fab spin-off and all) is somewhat unfavorable for AMD.
2. Nehalem, the bane of AMD: Core i7 (enthusiast Nehalem) comprehensively beats the latest and greatest AMD offerings (which are only competitive with 2 year old products from INTC). Core i5 (mainstream Nehalem) will also likely outperform the Phenom II. I don't know why people are pinning their hopes on the AM3 chipset; the only difference between AM2+ and AM3 is the DDR3 support. Benchmarks show that DDR3 provides almost no benefit at all! INTC will also have AMD by the balls with the release of the Nehalem-based server procs (Gainestown). This has been a VERY lucrative segment for AMD so far due to its technological superiority over INTC and attractive pricing. Any and all of AMD's advantages in this segment will be obliterated with the introducton of Gainestown in the coming months.
3. Barren roadmap: All AMD can offer us for the next two years is the Phenom II at the top and lower-end Athlon derivatives. The next-gen platform from AMD is Bulldozer coming in 2011. Meanwhile, INTC keeps tearing ahead with a Nehalem dieshrink to 32nm (called Westmere) in the next 6-8 months and the next-gen architecture (Sandy Bridge) planned for H2 2010. AMD will only adopt 32nm with the introduction of Bulldozer. Here's a tidbit: Bulldozer was originally planned for *gasp* 2009!
4. Radeon and Fusion: Sure, the R700 based discrete graphics products are great and they caught NVDA with its pants down, but NVDA has already announced their next-gen products. NVDA had problems with their manufacturing, but not anymore (a loss has been declared on their quarterly earnings statement and the company has moved on). Has anyone heard of AMD's response anywhere? Of course, AMD 're probably not sitting idle (hopefully anyway), but they'd do well to inform their current and prospective shareholders of their plans in this area. They are touting Fusion as 'the future'. Well AMD, we're all ears; please go beyond buzzwords and mysterious platform names and educate us.
5. The Economy: 'nuff said... no? OK. Companies are having a lot of trouble moving inventories in these tough economic climes. Price (=margin) slashes, product delays/cancellations, etc. will not exactly be shocking developments. A price war with INTC is obviously not in AMD's interests anyway.
I wonder if the Saudis will continue their attempts to prop up AMD. All these things only mean the following things: eroding margins, eroding marketshare (at least in the processor segment), and my eroding confidence in AMD as a company and as a stock. AMD ideally shouldn't fail because it is *the* counterfoil to INTC. An INTC monopoly would suck mooseballs. Finally, from what I have read, an AMD takeover by say, IBM (or AAPL lol) is an impossibility or at least a legal minefield because of restrictive cross-licensing (x86, etc.) conditions by INTC expressly forbidding exactly that.
Ich weine für AMD.='(

http://www.fool.com/investing/general/2009/02/11/amd-shareholders-dont-bother-to-vote.aspx

It's a great company, low price Im waiting for this stock to reach 5 bucks. I want to see them grow. They sell products in electronic stores and want to see them grow into having their own stores.

Good luck guessing what AMD will do. The good news is that with the bone-headed acquisition of ATI, there' s no cash left to buy another rotten company. Nevertheless, these guys always find a way to stay in the game and at 2.36, well how much lower can they go considering the product line.

Will see renewed insurgence in this area for AMD, MU and others in America.

Beaten to death - no questions about the technology. Will rebound when tech spending - and capital spending in general - rebounds.

has to go up

Obama rally

An Ace on the Turn. One in the Hole. All in for a good chance to buy a dime with a penny? Count me in!