7.09.2007

VMWare Investment - Wise Move?

VMware sets IPO price range; lands Intel Capital as investor by ZDNet's Larry Dignan -- Intel Capital said it will invest $218.5 million in VMware and ultimately own 2.5 percent of the virtualization company’s outstanding common stock as it goes public. Separately, VMware said in a regulatory filing that it will offer 33 million shares priced between $23 and $25 a share. VMware, which will trade under the ticker “VMW,” [...]

It is a bit difficult to know for sure what's Intel's ulterior motive when we know for a fact that VMWare success means fewer CPU demand for both Intel and AMD. The significant amount leaves little doubt how much Intel is taking virtualization seriously. $218M was large enough to get a seat at the board and influence the direction of the company bearing in mind that AMD and Intel have competing virtualization technologies. The virtualization market is about to explode with the proliferation of multi-core processors and under utilized servers. And if Intel can get a leg up by collaborating closely with VMWare (research and marketing) and at the same time marginalize AMD's technologies, it is easy to makes sense of the investment.

8 comments:

Anonymous said...

Bye AMD.

SPARKS said...

Don't be so hasty. Things are very bad for Ruinz and his minions, no doubt. However, the stock price HAS been gaining significant momentum. Today’s 75 cent per share increase, a steady rise during the past few weeks with a special share holder meeting on 7/16 is pointing to something very big. All this, despite Intel’s $1.50 one day rise, terrific quarterly dividend payout, great road map, regained market share, and of course, Penryn.

The Street knows something big is brewing for AMD. This is insider stuff that sneaks out slowly and quietly. It has nothing to do with Barcelona or sales. It has to do with big money. Capital Research and Management and Company, among others, holds a 16 percent stake in AMD. Morgan Stanley holds the note. They will not let AMD go away quietly into the night; bank on it.

SPARKS

Anonymous said...

A year ago, just before Conroe, Intel was hovering around ~18. Now it's 26. Is AMD's "rebound" so impressive now?

Roborat, Ph. D. said...

The Street knows something big is brewing for AMD...

There is speculation that this quarter unexpectedly picked up. report earlier this week shows that Intel may report on the high side of the window. Obviously, this can spill over to AMD. I won't be surprised if it did. Of course stocks always tend to go the direction where the consensus is before earnings report. But be aware that these are short term share price moves.

this is different from 2003, sparks, so i think you should hold on to your cash.

SPARKS said...

Doc, let us get one thing clear. This was just a comment on something brewing.

MY MONEY has been and always will be with INTC. I buy when they are at the low end. This time around the good Lord shined on me @ 17.25 a year ago nearly to the day. Hoo Ya! Those IDIOTS had Intel for dead, even after Conroe was kicking the guts out of K8. Now @ 26., as I told a certain 'Charlie' 8 months ago, my target was 27.00 by August. I'm a buck away, mid July, sans a good earning report, and with BarBaloney on Skid Row.

Intel? Here's to a great Christmas cheer. AMD? Not with my money, never, not with that dog and pony show. Presently, they are not worth what they paid for ATI.

SPARKS

Anonymous said...

Ha

Giant said...

Nehalem is coming in H2'08: http://www.vr-zone.com/?i=5113

AMD is finished. K10 is fragged by Clovertown. Still, Penryn is coming this year and Nehalem is coming next year.

Anonymous said...

Scientia is at it again. Now apparently Intel cannot release a dual core or quad part faster than 3Ghz. With the new E6850 3Ghz with 65W TDP, they have plenty of headroom left at 65nm.