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- AMD appoints new CEO as losses continue
Re: AMD appoints new CEO as losses continue
Are you old enough to remember when there were at least five different
companies making x86 CPUs? What happened to them all? They were
going under, unable to compete with Intel (and AMD to some extent) and
were bought by other companies who wanted the licenses to manufacture
x86 CPUs with the Intel microcode. I remember that National bought
one and after a few years of not knowing what to do with it sold it
off again. I believe that was the unit that is now part of ASUS
marketed as VIA chips. Another ended up with ST Micro which now makes
very low end x86 CPUs for embedded work.
None of these companies are making any product that is sold into the
desktop/laptop market place in any significant manner.
If (or should I say When) AMD is taken to the auction block it will
likely be split up. Many of its assets are worth something in
themselves, for example the foundries. ATI is another significant
asset if AMD doesn't run it into the ground trying to stay alive. The
CPU portion of its business may or may not fit well into anyone else's
business model. If you ran a billion dollar company, would you want
to pay even $0.10 on the dollar to get into competition with Intel???
I have been watching AMD as a stock for almost 20 years. I was able
to pick three times in its history when it was down for the count and
I was certain that it would be back on its feet in a year. I made
significant money on this as did a few of my believing friends. But
like others have said, they don't have any rabbits up their sleeve
this time. There is nothing in the works that will let them compete
again with Intel. They are a full process node behind assuring that
Intel can undercut them and still make money.
Every year AMD is losing money equivalent to the entire market cap of
the company. They are going to start selling off assets to try to
stay afloat. But they won't be able to borrow any more money and
their days are numbered. Even if the economy turns around big time,
they likely won't be able to pull up their average selling prices
enough to make a profit.
This can't continue long. Someone posted about the "long term"
outlook for AMD... well we are all dead in the long run and AMD is
likely dead in the short run.
Oddly enough, the only feasible bailout for AMD is Intel! They won't
want to be alone in the marketplace because of all the anti-trust
issues. So they may find a way to funnel some cash into AMD, enough
to keep them afloat. But I'm just speculating there.
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