“Everything that can go wrong has gone wrong” for AMD

From the Houston Chronicle:
“Chip maker Advanced Micro Devices Inc. may be losing market share, while continuing to face pricing pressure and cash flow challenges, according to Friedman Billings Ramsey analyst Chris Caso.”
"Our checks and AMD's own comments suggest that the company's first-quarter miss is related to share loss, not market softness," Caso wrote in a note to investors. "In contrast to AMD's comments, however, we believe this is more than a one-quarter problem, due to excess AMD inventory at customers, what we expect will be continuous competitive pressure form Intel, and AMD's urgent need to raise cash."
Caso reiterated an "Underperform" rating on the stock, and said he thinks the stock could drop to as low as $10.

AMD’s uncompromising marketshare strategy while sacrificing everything that matters in the business world like turning a profit seemed to have grinded to a halt and failed miserably. Now AMD has nothing left but a very big grave that they seem to have efficiently dug over night. Missed earnings, alarmingly low margins, poor product offerings, slow execution, huge debt, customer inventory, expensive and inefficient Fabs and poor yields. The future doesn’t look bright either. Any chance of AMD at least increasing ASPs with the release of K10s is now completely gone with the aggressive pull in of Intel’s Penryn 45nm family.

When AMD described Intel’s admission of losing e-mails as “everything that could go wrong did go wrong”, it seems that this sort of phrase is commonly used internally by everybody in AMD when reporting updates.

I sure hope that Scientia will now admit how he severely underestimated Core2Duo and he was completely mistaken to think that 2007 will be a good year for AMD. I honestly don’t know what else can AMD screw up to change his outlook. But I'm not holding my breath.


Anonymous said...

I give AMD til 2H 08 and its bankruptcy. Not really, thats a pretty dim view but far more feasible than Intel going bankrupt.

roborat, ph.d said...

Sorry, I now think that Intel is going BK, not AMD. AMD is the best. No one is better.

Anonymous said...

Tick: Intel:Core2, AMD:QuadSucX
Tock: Intel: 45nm Penryn, AMD: Barcelona
Tick: Intel:Nehalem, AMD:whine
Tock: Intel:32nm, CSI, AMD:BK