AMD Announces Net Loss in the Third Quarter

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[citation][nom]eyemaster[/nom]If AMD is always in the red, how can they stay in business? I don't understand. I love their products and keep buying from them, but how are they still alive?[/citation]

They can sell assets (foundries, buildings, etc.), get help from German or American or other state governments who want them to create jobs in their area, get help from governments in petrol-rich countries who want to diversify into high-tech, get cash settlements from rivals, sell bonds, borrow from banks or private investors, create more shares out of thin air and sell them (diluting existing shares), etc. There's even a theory in AMD's case that Dell and HP and Acer and so on would save AMD, if absolutely necessary, to avoid an Intel monopoly that could hurt them.

Eventually, with a little luck, profits return and the companies buy back some shares or pay some debts. My guess is that AMD can still take a year or two of punishment, and since no recession lasts forever they will probably survive this one too.


 
People here are so uninformed. AMD would have made money were it not for one time charges, and the old manufacturing part they still own 30% of. Revenue is up as well. These are very healthy earnings.

Bulldozer is not going to compete head on with Intel anymore. AMD chose a different route, and that's a good thing because they simply can not beat Intel trying to do the same thing. Intel is still focused mainly on maximizing single threaded speed, and AMD can't match them there. AMD gave up some single threaded performance (not compared to current chips, but compared to what they could have made) to maximize throughput for many threads. This is pretty good for servers, so it could help them there. Also, most people keep forgetting about the Bobcat, which could be the most important processor AMD is creating. The Atom is just too slow for a lot of things, and the Bobcat moves right into that area above it. It's not like underclocking an existing processor to meet a thermal or electrical limit, because that processor still costs as much to make as the fully clocked one. So, AMD can sell this processor cheaper to make a profit, and it should have pretty good performance for most people and applications.

AMD hit Intel where they weren't. I think Bobcat has a really good market position, and is very attractive for a lot of potential buyers. And Bulldozer should work well in servers. For clients, they'll do what they do now, sell cheap. It's better than now. They are very uncompetitive with servers, and they don't compete well in the low-cost, low-power segment either, yet they'd still be profitable except for manufacturing, and one-time costs.

These were good earnings, not bad. Look beyond the "lost money" part, and you'll see why people consider it good.

The bad part was their guidance for Q4.
 
[citation][nom]rmmil978[/nom]If Bulldozer isn't a champion CPU, I think AMD's days are numbered.[/citation]

Ever heard of ATI? Ever hear of selling off part of a company? AMD will be around for a long long time. They're not huge, but as far as a corporation goes they have enough assets to break even at least and survive. They may have to severely slash off some parts, but they could survive as solely a GPU maker, or chipset maker, or CPU maker, or...whatever else it is they do.
 
AMD is awesome. I remember 6-7 years ago when it was a preferred CPU, just as ATI were preferred graphics cards. Politics really changed the game. Intel is very overpriced. The Six core Phenom that AMD makes is blazin for $300!
 
[citation][nom]TheRockMonsi[/nom]Hope this doesn't eventually lead them to being bought out by somebody, like the rumors that recently rose up.[/citation] I hope they get bought out by Nvidia if they're bought out.
 
[citation][nom]applegetsmelaid[/nom]AMD is awesome. I remember 6-7 years ago when it was a preferred CPU, just as ATI were preferred graphics cards. Politics really changed the game. Intel is very overpriced. The Six core Phenom that AMD makes is blazin for $300![/citation]
Lol intel overpriced, they are priced in terms of performance competitively with AMD. Just because you only look at gaming benchmarks doesn't make AMD competitive. Becuase of that gap Intel is able to reap large profits.
 
They need to unload that GPU stinker they bought a few years ago. Ruiz was an idiot, but Meyer needs to stop living the Ruiz legacy. I sold my AMD stock long ago, and it seems I made the right choice.
 
[citation][nom]chrisv815[/nom]So sad. especially since I still own some AMD stock. I had to dump the AMD procs this year after years of loyalty (I still remember arguing with people how much better DDR was than RAMBUS or whatever intel failed with) When they stopped making any mobos that do SLI. I refuse to use their crossfire, and trying to ram it down my throat cost them the chip platform.[/citation]
Unfortunately though, Nvidia doesn't make Chipsets. I'm sure that's more of a licensing issue than anything else.
 
[citation][nom]IzzyCraft[/nom]Lol intel overpriced, they are priced in terms of performance competitively with AMD. Just because you only look at gaming benchmarks doesn't make AMD competitive. Becuase of that gap Intel is able to reap large profits.[/citation]

What gap are you talking about? That huge performance gap that supposedly keeps showing up in comparative benchmarks? The one that Intel fanboiz are always bragging about? Because the all the "gaps" I've seen don't even come close to justifying Intel's prices.
 
[citation][nom]ohim[/nom]Not surprised that AMD has losses becase ppl like you think AMD makes slower CPU`s ... take AMD at the same price and tell me what`s the difference.[/citation]
Easy, overclocking headroom..., still more bang for your buck.
 
IBM should buyout Via and Nvidia they'd have so much tech at there disposal it's not even funny AMD/Intel/MS/Sony would all be a heap of trouble because they could make a hybrid upgradeable pc/console based on powerpc, x86, and gpu.
 
I don't have to imagine how much more expensive intel CPUS would be without AMD. I remember when low level Pentiums cost between $1000 to $2000. If you wanted cheap you would have to pick a 386.
Intel probably dominates because of laptops, they are what most people buy nowadays.
 
[citation][nom]kelemvor4[/nom]They need to unload that GPU stinker they bought a few years ago. Ruiz was an idiot, but Meyer needs to stop living the Ruiz legacy. I sold my AMD stock long ago, and it seems I made the right choice.[/citation]
Well you haven't been paying attention to the news have you? AMD/ATI base graphic cards have been doing really well. I think the 5970 still holds the top position, and the 6000 series is coming out soon. BTW I might have two 5870's for sale anyone interested :)
 
[citation][nom]TheRockMonsi[/nom]Hope this doesn't eventually lead them to being bought out by somebody, like the rumors that recently rose up.[/citation]

amd is going down. they will be better off if they sell the company to someone like msoft or even nvidia
 
If AMD has to be bought I would want it to be Apple. Getting Steve Jobs reality distortion field behind AMD products could cause a huge problem for Intel!
 
We all knew the Nvidia GTX460 was taking over the mid, and even high-end segment of the video card business. It makes sense that AMD would be releasing the mid-range 6870 and 6850 to try to compete and regain some of that market share. It also explains why AMD would debut the new 6000 video card series with the mid-range offerings. In the past, a new series of graphics cards has always debuted with the flagship version. With these earnings reports, it seems that there is an urgent need to get out and address the competition ASAP.
 
[citation][nom]Dirtman73[/nom]What gap are you talking about? That huge performance gap that supposedly keeps showing up in comparative benchmarks? The one that Intel fanboiz are always bragging about? Because the all the "gaps" I've seen don't even come close to justifying Intel's prices.[/citation]
Take a look at non gaming benches look at gaming benches. Notice how the dual core runs as good as all those defunct quad cores that intel is making. In terms of resources used it takes intel much less money to make a chip competeive to intel.

Look at the I3-530 and what's around that.
http://www.tomshardware.com/charts/desktop-cpu-charts-2010/Gaming-Left-4-Dead-2,2433.html
http://www.tomshardware.com/charts/desktop-cpu-charts-2010/Video-Transcode-Handbrake-MPEG-2-to-H.264,2421.html
http://www.tomshardware.com/charts/desktop-cpu-charts-2010/Archiving-WinRAR-3.92-x64,2430.html
http://www.tomshardware.com/charts/desktop-cpu-charts-2010/Archiving-7-Zip-0.91-Beta,2429.html

They are priced around what they perform and guess what cost more to make a dual core or a quad/tri core. Not even counting that intel is on a 32nm vs amd's 45nm Intel could easily price their things lower but they know people will buy intel still based off brand even if the cost for performance maybe would be 10 20 bucks cheaper in certain applications.
 
[citation][nom]rmmil978[/nom]If Bulldozer isn't a champion CPU, I think AMD's days are numbered.[/citation]
I agree with you pretty much here.If Bulldozer turns out to be a flop like the original defective Phenom AMD will be in a lot of trouble.
However their mobile Bobcat line could be a big sucess with Laptop,Netbook makers.
 
[citation][nom]Dirtman73[/nom]Chickenhoagie's point is that AMD prices its products at a sane level. AMD is losing money because it doesn't see the point of ripping consumers off. Intel, on the other hand, knows that many people will pay whatever it costs to get a negligible % increase in performance. Therefore Intel charges whatever it wants. Pretty simple.[/citation]

Actually AMD did charge an arm + leg back when K8 was way ahead of P4.. Neither company is yours or my buddy - they are in business to make money, and presumably AMD has run the marketing numbers to price their products where they can make some profit on volume.
 
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