Posted 07/16/08 at 12:05:34 AM by Pulkit Chandna

Although ATI has been the lone source of promising news for it in recent times, AMD is ruing its 2006 acquisition of ATI. The chip manufacturer heavily overpaid for the ATI acquisition and now values the graphics chip maker at only $2.9 billion – it bought ATI for $5.4 billion.

Its announcement that it will take a $948 million charge drove its stock price to a 16-year low of $4.84 on Friday. It will officially report its Q2 loss of 51 cents per share on 17th July. It will be its 7th consecutive quarterly loss. Most analysts paint a dreary picture of AMD’s future but a few like CRT Capital Group’s Ashok Kumar remain sanguine about the company’s prospects. AMD will have to quickly turn a corner if it wants to survive.

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amd, ati, charge, loss, q2, stock, 16-year low, analysts, write offs