AMD Reports Second Quarter 2017 Financial Results

[Captain_Tom]

So... companies that end up in black are stupid?

Have you watched the show Silicon Valley? LOL

 

[thesmokingman]

It's fair to say, most here don't understand business.. AMD is on a good road right now!

It's ironic right? From CNBC:

• Wall Street is surprised over AMD's strong earnings and guidance due to digital currency mining demand for its graphics cards.
• AMD shares have rallied 102 percent through Tuesday in the previous 12 months compared with the S&P 500's 14 percent return.
• That performance ranks No. 4 in the entire S&P 500, according to FactSet.

The most hilarious quote is from the register:

AMD shocks the world by only losing $16m

rofl

https://www.theregister.co.uk/2017/07/25/amd_q2_fy2017/

 

[FrustratedGarrett]

Some people wondering about why they are in the red: If you want marketshare as a underdog you will have to invest. Right now AMD is producing more CPU that they have done in a decade and pushing on all cpu markets. Do you think that stuff comes cheap? A company will push their economy to the max for marketshare and SHOULD go to 0 or minus (if not they have not invested enough. Reestablishing infrastructure and reputation at sellers is not free!

Ryzen CPUs are priced terribly. Mostly because they suck at gaming workloads (muh 8-core CPUs for gaming), but also because some of the CPUs aren't priced apart well, like the 6 and 4 core ones. I mean they're selling their 4C/8T CPU for less than the 6600k. How do you expect them to make money? That company is run by people who only care about survival so that they can keep filling their deep pockets and outsourcing jobs, while the company crumbles on itself. Their thread Ripper line up won't make 'em any decent profits.

To make things worse, Vega is a failure and Volta is around the corner. If I were a stock holder, I'd want them to sell their divisions to Intel, Nvidia, or Qualcomm, and call it a good run.

 

[Captain_Tom]

Ryzen CPUs are priced terribly. Mostly because they suck at gaming workloads (muh 8-core CPUs for gaming), but also because some of the CPUs aren't priced apart well, like the 6 and 4 core ones. I mean they're selling their 4C/8T CPU for less than the 6600k. How do you expect them to make money? That company is run by people who only care about survival so that they can keep filling their deep pockets and outsourcing jobs, while the company crumbles on itself.

This is a common misconception. The CCX design and GF's cheap 14nm process make Ryzen chips cheaper to manufacture than their Intel counterparts.

Look it up - Ryzen die size is smaller, and GF's node is cheaper. AMD is getting 80%+ yields while Intel is getting 70% yields at best, and AMD's cpu is easier to make.

 

[Ravenas]

The growth over the last year and a half is an amazing story. Going from a 1.5 bil dollar market cap to a 14 bil dollar market cap in less than 2 years time. Wow.

 

[TheinsanegamerN]

Ryzen CPUs are priced terribly. Mostly because they suck at gaming workloads (muh 8-core CPUs for gaming), but also because some of the CPUs aren't priced apart well, like the 6 and 4 core ones. I mean they're selling their 4C/8T CPU for less than the 6600k. How do you expect them to make money? That company is run by people who only care about survival so that they can keep filling their deep pockets and outsourcing jobs, while the company crumbles on itself. Their thread Ripper line up won't make 'em any decent profits.

To make things worse, Vega is a failure and Volta is around the corner. If I were a stock holder, I'd want them to sell their divisions to Intel, Nvidia, or Qualcomm, and call it a good run.

Is being a whole 2-3% slower "suck" now? Please show me a gaming workload that a 1700 cannot handle well. I'll wait.

This whole comment, from the misconception of performance, the misconception of costs, that weird rambling bit about outsourcing jobs, all reads like some sort of intel shillboy/fanboy dribble.

 

[bug]

Have you watched the show Silicon Valley? LOL

I haven't. Why? Do you educate yourself by watching HBO?

 

[phanbuey]

Even with Ryzen out and selling they're losing money. I don't see how they can survive in the long term. They should sell their graphics division to Intel and their CPU division to Nvidia and call it a day already.

Operationally they are making money.

 

[thesmokingman]

Is being a whole 2-3% slower "suck" now? Please show me a gaming workload that a 1700 cannot handle well. I'll wait.

This whole comment, from the misconception of performance, the misconception of costs, that weird rambling bit about outsourcing jobs, all reads like some sort of intel shillboy/fanboy dribble.

The rise of low post count posters worrying for AMD's behalf is an interesting coincidence.

 

[Nuckles56]

The rise of low post count posters worrying for AMD's behalf is an interesting coincidence.

I think we could also say the same about the reverse, with low post count people popping out of the woodwork claiming AMD's doom will happen tomorrow because Ryzen is s**t

 

[notb]

It's fair to say, most here don't understand business.. AMD is on a good road right now!

Because?

Most of these comments are laughable and show a sad understanding of how to read a companies financials. Basic understanding of economics and how the financial markets work would really help people understand that these are phenomenal numbers coming from AMD and show a clear path toward long term growth and profitability.

Can you point out the phenomenal part?
I'm not saying the results are bad, but they're far from great either. The situation improved, as everyone expected. But it's not a huge jump and - since we can't easily separate CPU and GPU impact, this could all be a result of mining boom.

But by all means, listen to Goldman-Sachs if you would prefer...their last few analysts predictions have helped them increase their holdings in AMD for cheap.

GS does not own a significant (>1%) share in AMD (I'd say: no share at all).

I think we could also say the same about the reverse, with low post count people popping out of the woodwork claiming AMD's doom will happen tomorrow because Ryzen is s**t

I think the problem here is that people confuse 2 fundamental things: Ryzen being a good CPU and a good product.
This is not a place for discussing whether Ryzen is a good CPU for the user. But is it a good product for AMD? Especially at the price point they're currently forced to sell it? 1800X price is down $80 since launch, 1700 is -$60.

 

[Boosnie]

This is not a place for discussing whether Ryzen is a good CPU for the user. But is it a good product for AMD? Especially at the price point they're currently forced to sell it? 1800X price is down $80 since launch, 1700 is -$60.

And what conclusions you make out of these pricing considerations?

It's in italian but the numbers still show 215% over a year because ryzen is not a good product for AMD


EDIT: for my part, I'm a low post user because I set myself a goal to build an all red pc for the first time in years since my last build (Athlon XP).
I went on with laptops for more than a decade and I'm now resurfacing on the gaming side of life.
Hopefully RX Vega will be better than it seems it is right now.

 

[rtwjunkie]

Even with Ryzen out and selling they're losing money. I don't see how they can survive in the long term. They should sell their graphics division to Intel and their CPU division to Nvidia and call it a day already.

So much here....

AMD hemmhoraged money for so long and owed so much money that even while selling well it will take a long while to climb completely out of the red. It's a long slow process in business. Their prospects on the financials look fairly positive.

As to selling off to Intel and Nvidia, they would not be allowed to do that. They are a U.S. company and regulations preventing monopolies would kick in. Until a valid 3rd competitor to CPU's and GPU's comes along, AMD will never be allowed to fail.

 

[notb]

It's in italian but the numbers still show 215% over a year because ryzen is not a good product for AMD

215% built on a product hype.
AMD stock was going up for a long time and maxed at $15.2 in the last week before Ryzen launch.
The actual launch stopped the positive trend. It hasn't reached the $15.2 level since.
BTW: after a short optimistic jump, the stock is back to the price from before the Ryzen 3 announcement.

AMD hemmhoraged money for so long and owed so much money that even while selling well it will take a long while to climb completely out of the red. It's a long slow process in business. Their prospects on the financials look fairly positive.

Have you even read this before posting?
Their "prospects on the financials" is rubbish for exactly the reason you've mentioned. They've spent a lot on developing Ryzen. This could have been a huge revolution, but it turned out to be just another CPU - just cheaper than Intel's. This huge investment may not pay off.

As to selling off to Intel and Nvidia, they would not be allowed to do that. They are a U.S. company and regulations preventing monopolies would kick in. Until a valid 3rd competitor to CPU's and GPU's comes along, AMD will never be allowed to fail.

I don't think any American company would be interested in buying AMD. But there are quite a few Asian ones that could use the patents and the brand (and they can easily afford it).

 

[Frick]

Again, Ryzen is <6 months in the market, and they have no chip with an IGP or a mobile chip yet. It's way to soon to call it in for AMD.

 

[rtwjunkie]

Again, Ryzen is <6 months in the market, and they have no chip with an IGP or a mobile chip yet. It's way to soon to call it in for AMD.

Actually, APU's announced today.

 

[deu]

Ryzen CPUs are priced terribly. Mostly because they suck at gaming workloads (muh 8-core CPUs for gaming), but also because some of the CPUs aren't priced apart well, like the 6 and 4 core ones. I mean they're selling their 4C/8T CPU for less than the 6600k. How do you expect them to make money? That company is run by people who only care about survival so that they can keep filling their deep pockets and outsourcing jobs, while the company crumbles on itself. Their thread Ripper line up won't make 'em any decent profits.

To make things worse, Vega is a failure and Volta is around the corner. If I were a stock holder, I'd want them to sell their divisions to Intel, Nvidia, or Qualcomm, and call it a good run.

So thats why they are selling like hot cake?

I know the whole 'more cores' can be hard to grasp but with the comming 1-2 year you will see a shift for multicore utilization pushed by ryzenplatform on consoles, dx12 vulkan. Comparing the purcase of a new ryzen CPU to the used price is not and argument as it can be used against ANY new CPU. (my 4770K for instance decimates 7700K in cost/performance if we take mine used and 7700K as a new CPU. And trust me; the stock did not go up 639% for fun last year. It is possible that you and your friends dont attribute any progress to what is happening with AMD, but they are strong-arming intel to complete and utter panic (partly intel own fault) right now AMD can spit out CPUs cheaper than intel can. And everything in intel lineup have undergone pricedrops. 7700K cost 66% lower compare to before ryzen (eventhough 4770,4790,6700 did not move on inch during their complete cycle.) Do you think intel have decided to drop prices because they just love their customers? You gotta read up on alot of stuff if you dont wanna get battered on the forum

 

[bug]

So thats why they are selling like hot cake?

I know the whole 'more cores' can be hard to grasp but with the comming 1-2 year you will see a shift for multicore utilization pushed by ryzenplatform on consoles, dx12 vulkan. Comparing the purcase of a new ryzen CPU to the used price is not and argument as it can be used against ANY new CPU. (my 4770K for instance decimates 7700K in cost/performance if we take mine used and 7700K as a new CPU. And trust me; the stock did not go up 639% for fun last year. It is possible that you and your friends dont attribute any progress to what is happening with AMD, but they are strong-arming intel to complete and utter panic (partly intel own fault) right now AMD can spit out CPUs cheaper than intel can. And everything in intel lineup have undergone pricedrops. 7700K cost 66% lower compare to before ryzen (eventhough 4770,4790,6700 did not move on inch during their complete cycle.) Do you think intel have decided to drop prices because they just love their customers? You gotta read up on alot of stuff if you dont wanna get battered on the forum

Not that I disagree with you, but last year AMD's stock went up because they signed some contracts to supply GPUs for deep learning and such. Same for Nvidia. Nothing to do with Ryzen/Threadripper/Epyc.

 

[deu]

Not that I disagree with you, but last year AMD's stock went up because they signed some contracts to supply GPUs for deep learning and such. Same for Nvidia. Nothing to do with Ryzen/Threadripper/Epyc.

It was more less the CPU division that was the cause (I checked to stock everyday since i owned it) (bought it at 2,3$ and sold it at 14,5$ 3-4 months ago. )The AMD kept optimizing their business and centering their focus WAY more than the years before. They got the deal with the chinese goverment, CERN, consoles and so on. The chinese one resulted in a temporary 60% increase landing on about 51% as far as i remember. (biggest jump for the stock in its history) Their GPU involvement is not the solve cause for sure but i remember the agreements pushing it 10% a few times. Ryzen information kept the price rising up to the launch. If you ask me the next or the quarterly will push AMDs market share up resulting in the stock going up.