AMD Stops the Hemorrhaging, but is Still Bleeding Cash
AMD Stops the Hemorrhaging, but is Still Bleeding Cash
Posted 10/18/2008 at 4:08pm
| by Justin Kerr
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AMD posted better-than-expected earnings on Thursday and proved to its chief rival Intel that they may be down, but not out. The company which has been losing money for some time now managed to make a respectable 13 cents per share which far outstripped analyst expectations of a 39 cent loss. This is good news for AMD, but the semi conductor giant isn’t out of hot water just yet. The company still posted a $67 million dollar loss, though when you compare this to the $396 million it shed in the same quarter last year it suddenly doesn’t seem so bad.
Not surprisingly, sales and margins improved mostly on the back of its graphics chip division which has made significant gains in market share at the expensive of Nvidia. Revenues rose to $1.78 billion again pulling ahead of analyst expectations of a meager $1.48 billion. AMD has stated that it expects fourth quarter earnings to be flat, and given its current processor lineup vs. Intel, not losing any further market share will indeed be a challenge. The recent announcement that will split the company in two won’t take effect until year end. AMD stock is currently trading at $4.21 down almost 50% since the beginning of the year.
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Keith E. Whisman
October 19, 2008 at 9:14pm
So for $20 bucks I could just about buy up enough stock to own controlling interests in the Company..... LOL..
brokenmoth08
October 19, 2008 at 11:45am
AMD was ahead for a while now it is Intel's turn. The way I see it in buying CPUs you win either way Intel makes awesome chips, AMD makes good chips at awesome prices. A Quadcore with an unlocked multipier for under $200. One has to dominate to make the other lower their price. Unless your Apple, then you jack them up.
HarmonicShadow
October 18, 2008 at 7:45pm
I'm not much of a fan of AMD's. They get too hot too fast and die all too often.
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Bill Gates: "What's that?"
Steve Jobs: "It's an iHouse."
Bill Gates: "But there's no Windows."
Steve Jobs: "EXACTLY!!"
dc10ten
October 18, 2008 at 7:23pm
itll be just a matter of time before AMD catches up. I don't know if and when they can pass intel, but i hope they get back to where they were
HarmonicShadow
October 18, 2008 at 7:06pm
More competition means less of a monopoly. It would be really interesting if Nvidia combined with Intel or vice-versa. A big GPU and Motherboard maker combines with a big CPU and Motherboard maker. Look at AMD and ATI's model. Intel and Nvidia coming together on something, other than in a CPU and GPU in the same motherboard, would be pretty cool.
guoruiwu1994
October 18, 2008 at 5:54pm
hopefully amd will get on its feet soon, the more competition the better.
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