Friday, July 17th 2015
AMD Now Almost Worth A Quarter of What it Paid for ATI
It's been gloomy at the markets in the wake of the European economic crisis. This along with a revised quarterly outlook released by the company, hit AMD very hard over the past week. The AMD stock opened to a stock price of 1.87 down -0.09 or -4.59% at the time of writing this report, which sets the company's market capitalization at $1.53 billion. This is almost a quarter of what AMD paid to acquire ATI Technology, about a decade ago ($5.60 billion). Earlier this month, AMD took a steep fall of -15.59%, seeing its market cap drop by a quarter.
Intel is now worth $140.8 billion (92 times more), and NVIDIA $10.7 billion (7 times more). Among the issues affecting AMD are decline in PC sales and stiff competition. However, reasonably positive earnings put out by Intel disproves AMD's excuse that the market is to blame for bad performance, and the company could slide even further, hitting its all-time-low at the financial markets. The company will host an earnings call later today.
Source:
Google Finance
Intel is now worth $140.8 billion (92 times more), and NVIDIA $10.7 billion (7 times more). Among the issues affecting AMD are decline in PC sales and stiff competition. However, reasonably positive earnings put out by Intel disproves AMD's excuse that the market is to blame for bad performance, and the company could slide even further, hitting its all-time-low at the financial markets. The company will host an earnings call later today.
136 Comments on AMD Now Almost Worth A Quarter of What it Paid for ATI
On a side note. It's odd but I'm slowly moving away from intel products even though the performance gap is getting steadily larger, I've come to realize that I don't play enough new games to care about single threaded performance on the other hand I do stream and edit video on occasion and that's something an FX8370 at 4.8Ghz can do better than an i5 4XXX.
The reality is that for a regular consumer who spends most of their time browsing reddit, watching Netflix, maybe fumbling with formulas in Excel or playing games, the choice of a CPU makes very little difference. But people are not some perfect, rational consumers and will gladly pay double because the guy at the computer shop read a review and the prime95 numbers were better so they end up getting the Intel i7.
What fairly few people here realize (the54thvoid being one of them) is that there is much more to running a profitable business than just having the best product, and that marketing is not just buying advertisements.
For the record, I have i5-3350P myself.
You're also ignoring how Intel has prioritised power efficiency over performance since Sandy Bridge, so that their CPUs can be put into even more devices and make even more money. This is called a "successful business strategy" and is something that AMD has not yet heard of.
SGI sold them...
I had a 4690 (non K) which my friend's CPU kicked the bucket so I gave that to him. and I had a pentium G3260 laying around. and I honestly couldn't tell the difference with basic stuff.
I even played CS go on the integrated GFX no joke!
This last week I got a I7 4790K as my Final CPU till the end of next year when Zen etc come out. and I can not notice any diff. except AAA games that need the HP and then multitasking apps.
The i7 is total overkill and thats cool id rather have it than not have it and need it.
if I had the pentium I woudnt be able to play battlefront etc. or I could but with less Ai etc. just like BF4 if you had a dual core you got less AI in the single players etc.
What I said..... Perception and belief are key to this, whether or not their products stack up. If you can't get it across to the consumer that your product is the best (even if it isn't, iphone for example) then you fail at changing opinions and perceptions. The same way that LG have problems shifting lots of their flagship G4 smartphone despite it being pretty damn good. Samsung and Apple hold the market perception amongst the masses as being the best (and they are good mind). AMD while delivering solid products are seen as lesser. That is a failure of AMD's own marketing strategy and it's business direction. AMD need to prove they have a viable alternative to Intel and/or that it fits a better pricing model. This product then has to be delivered to the consumer at a profitable margin.
As for your whimsical fairy tale that it is Intel's fault, that's because AMD has failed to counter the industry's perception. Your general statement about using the tech for mundane purposes is irrelevent as I can also use a low cost Intel or even a SoC for that. AMD are a business and if they cannot change perceptions - they have failed as a business, irrespective of the market forces around them.
FTR, for you to simply state "fairly few people realise..." shows a staggering level of arrogance and ignorance. Even if i knew jack shit about business, there are a whole heap of folks here that do.
For those unfamiliar with how businesses work, it's the marketing's job to perform market analysis and communicate the value of the product to the customers, including business customers. And the fraction of high-end consumer grade CPUs (that is i7s rather than Xeons) that are actually used for number crunching as opposed to idling in office PCs is minuscule. They might as well be APUs, but AMD failed to convince anyone about that. After all, they are slower in Prime95, and the benchmarks don't lie.
what happned to the good ol days when you could slap on a naked chick and a product would sell?
Mismanagement seems to be the biggest problem AMD has had over the years. It has brought them to the point of ruin and I don't think Lisa Su can turn things around now even though she is trying. Their debt increases at alarming rates and they probably can't borrow too much more because they are having trouble servicing the debt they already have.
In the last 10 years AMD has fallen from $40 a share to $1.87 a share. A market cap of 32.5 billion dollars to a market cap of 1.5 billion dollars. That's a staggering 2,140% loss for shareholders. In the last month alone AMD's market cap has fallen another 24%.
Well there is only the hope that they will make some money with the GPU sales that are happening now. Other than that they are not doing much until 2016...
This is definitely one of the reasons they're not doing very well lately. It's not 2005 anymore, people need quality stuff. Nice art, some social media interaction, a couple Microsoft-style ads (no, not with Balmer having a stroke). Just putting a triple-tittied lady on the box of your Fury XXX GPU isn't gonna be enough.
They need to focus on winning over OEM's, get their products in the market and maybe show off that they are in every console. That would at least help them get their names out a bit more which is part of their problems currently.
Whoopsies!