2.16.2007

AMD's marketshare strategy not paying off?

It appears that AMD's has gotten itself into some very big financial trouble. Again, this goes to show how Scientia's rosy outlook for AMD is completely off.

AMD in Trouble: Needs to Raise Cash & Develop Products

AMD needs to come out with new products, he says. And they also need to shore up the balance sheet. “We think management will be forced to come to the capital markets for operating cash before the end of the summer,” he asserts.

Unfortunately AMD is only coming up with a new product with extremely limited volume this year. The performance of K10 is even doubtful to give AMD the high ASP it needs. I think it’s the beginning of the end for AMD. 2007 with be a tough year for them and 2008 is looking like it’s even tougher. 45nm and later Nehalem will definitely prevent AMD to sell anything with a profit. Sooner or later, the creditors will stop lending cash. And that’s when you go to Burger King and flip burgers like Sharikou.

2 comments:

Anonymous said...

I've also noticed that AMD's stocks have been gradually dropping since it hit its high of around $42 I believe sometime in 06. Its gone below $15 just recently.

Roborat, Ph. D. said...

To be honesy, I'm surprised it haven't gone down below $10. But a lot of analysts values AMD at $18. Until AMD shows some Barcelona benchmarks, i don't see any reason why one should be holding AMD at the moment.