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robwright
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- Feb 16, 2006
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[citation][nom]WizeGuy[/nom]this has to be one of the stupidest articles i have ever read.does anyone do any f'n research anymore. ARMH is worth 2.5 times more than AMD is. Even if some bank was willing to finance AMD, they would be paying interest on those loans for infinity. In fact financially it would make more sense for ARM to buy out AMD, but then why would ARMH want buy a 2nd place AMD when ARM is the new Intel. Duh...[/citation]
It depends on what financials you're looking at. Sure, ARM's stock price is currently trading at around $620, while AMD is at a lowly $9 a share. Big difference, obviously. But look at it a bit closer, and you'll see that AMD's market cap is more than twice what ARM's is, and AMD has nearly twice as many shares as ARM. And don't forget, AMD has a lot more cash on hand after the Intel settlement.
And here's the kicker. AMD's P/E (price to earnings ratio for non-stock geeks)is 14.22 as of today, and anything around 15 to 25 is very good. If you get to 50, you're starting to see an overvalued company. Surpass 100? Big red flag.
Well guess what? ARM's P/E ratio is 3,231.77. Just sayin'.
It depends on what financials you're looking at. Sure, ARM's stock price is currently trading at around $620, while AMD is at a lowly $9 a share. Big difference, obviously. But look at it a bit closer, and you'll see that AMD's market cap is more than twice what ARM's is, and AMD has nearly twice as many shares as ARM. And don't forget, AMD has a lot more cash on hand after the Intel settlement.
And here's the kicker. AMD's P/E (price to earnings ratio for non-stock geeks)is 14.22 as of today, and anything around 15 to 25 is very good. If you get to 50, you're starting to see an overvalued company. Surpass 100? Big red flag.
Well guess what? ARM's P/E ratio is 3,231.77. Just sayin'.
@mega_18
I agree with your point. I would have to say it if you didnt.
@To others
AMD does not have enough asset to buy ARM given ARM's market cap is around 2-3 times (When it comes to aquirsion the price will be a lot higher than that) of AMD PLUS AMD's current debit/asset ratio. It will not be even wise for AMD to think about.
It is not just the problem that how things will turn out for AMD to buy ARM.
1.It is first of all how AMD is going to gather enough enough liquidity asset on such a move. Do not forget AMD itself is still currently in huge amount of debits.
2. Second problem is that how would it turn out for the result when compared to the cost? Think of the oppertunity cost and gain. It is clearly not a good move given such a huge cost.
3. Given AMD's technologies, there is no reason to buy ARM either. I dont see how AMD will necessarily need ARM's technology. the only point of such a buyout is only getting the market. but except for that nothing else.
4. I do think the author have done enough research on this one.
I agree with your point. I would have to say it if you didnt.
@To others
AMD does not have enough asset to buy ARM given ARM's market cap is around 2-3 times (When it comes to aquirsion the price will be a lot higher than that) of AMD PLUS AMD's current debit/asset ratio. It will not be even wise for AMD to think about.
It is not just the problem that how things will turn out for AMD to buy ARM.
1.It is first of all how AMD is going to gather enough enough liquidity asset on such a move. Do not forget AMD itself is still currently in huge amount of debits.
2. Second problem is that how would it turn out for the result when compared to the cost? Think of the oppertunity cost and gain. It is clearly not a good move given such a huge cost.
3. Given AMD's technologies, there is no reason to buy ARM either. I dont see how AMD will necessarily need ARM's technology. the only point of such a buyout is only getting the market. but except for that nothing else.
4. I do think the author have done enough research on this one.
@robwright
Stop lying using those fake informations.
1. ARMH is 2-3times of AMD . You said it reversly.
2. ARMH's P/E ratio is around 97. the value you have given is almost 3-4times this actually value.
3. Stock price don't always count of P/E ratio. For AMD's case go check yourself. It does have a hugeee list on its liabilities side compared to asset. learn more and go research accurate data. dont fooling around by keep giveing fake numbers. It dont make you look like a pro
Stop lying using those fake informations.
1. ARMH is 2-3times of AMD . You said it reversly.
2. ARMH's P/E ratio is around 97. the value you have given is almost 3-4times this actually value.
3. Stock price don't always count of P/E ratio. For AMD's case go check yourself. It does have a hugeee list on its liabilities side compared to asset. learn more and go research accurate data. dont fooling around by keep giveing fake numbers. It dont make you look like a pro
@robwright
Just to give you more detail
ARMH(NASDAQ) mrkt cap: 14.xxB
ARM(In london) : 8.xxB
AMD(NYSE) : 6.xx
go check yourself. or you should really learn your math.
Just to give you more detail
ARMH(NASDAQ) mrkt cap: 14.xxB
ARM(In london) : 8.xxB
AMD(NYSE) : 6.xx
go check yourself. or you should really learn your math.
robwright
Distinguished
- Feb 16, 2006
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Yes, I surely messed that one up. I was looking at ARM's info on the London Stock Exchange instead of the correct info on the Nasdaq. I deserve the heat. Flame away.
joe_bloggs
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- Apr 29, 2011
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As many readers here have already pointed out, the market capitalisation of ARM is vastly greater than that of AMD. To acquire ARM, AMD would have to add significantly to the debt load that it is already carrying. ARM IP would certainly benefit AMD in its battle with Intel. However, ARM would have little to gain from such a deal. There is every chance that it would destroy a hitherto profitable and well-run company whose low-power CPU technology has bested that of the behemoth called Intel. Outside the US, many have watched in horror the damage inflicted upon storied English football clubs due to leveraged buy-outs by US raiders. ARM is a rare example of a British success story in the tech industry. It's perfectly fine on its own, so leave it be.
nforce4max
Splendid
- Sep 9, 2009
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http://www.youtube.com/watch?v=WV_2H3SwL2k
http://www.youtube.com/watch?v=qW-POOwUrtE
There is a bunch on this one.
http://www.youtube.com/watch?v=qW-POOwUrtE
There is a bunch on this one.
JamesSneed
Judicious
- Oct 26, 2009
- 2,783
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Don't think an acquisition is even remotely possible for obvious reasons, but a merger could potentially suit both parties.
AMD isn't as headstrong in its x86 approach, even though they're one of the few who actually hold a license to produce it. Furthermore, i really think intel's past illegal and unfriendly tactics put off quite a few more people then most would let on. I'm sure ARM manufacturers and ARM itself is and will always be wary of them, not just due to their power and brute force, but the way they're willing to use it. After the AMD-OEM incident Intel hasn't exactly been seen as a morally upstanding corporation.
But Intel is certainly not sitting pretty on a throne and looking about as things develop. They've had their butts handed to them before by AMD in the chip business and almost certainly don't want to see it happen again. For AMD, branching out into ARM is an awesome idea, particularly since the acquisition of ATi and their project fusion. Those two techs could mesh really well together.
Low power AMD-ARM apu? low power consumption and great graphical performance?! Where do i sign up?
AMD isn't as headstrong in its x86 approach, even though they're one of the few who actually hold a license to produce it. Furthermore, i really think intel's past illegal and unfriendly tactics put off quite a few more people then most would let on. I'm sure ARM manufacturers and ARM itself is and will always be wary of them, not just due to their power and brute force, but the way they're willing to use it. After the AMD-OEM incident Intel hasn't exactly been seen as a morally upstanding corporation.
But Intel is certainly not sitting pretty on a throne and looking about as things develop. They've had their butts handed to them before by AMD in the chip business and almost certainly don't want to see it happen again. For AMD, branching out into ARM is an awesome idea, particularly since the acquisition of ATi and their project fusion. Those two techs could mesh really well together.
Low power AMD-ARM apu? low power consumption and great graphical performance?! Where do i sign up?
sonofliberty08
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- Mar 17, 2009
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Glorious
- May 3, 2007
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[citation][nom]pelov[/nom]as for itanium, no. It's been dropped many times right on its head. At this point it performs equal if not worse than intel xeons and nevermind the pita it is to develop software for it.[/citation]
But that's on the "server segment"... RISC has better calc/watt ratio in the lower consumption department. Something a CISC can't get without sacrificing a lot of computational power. Itanium as a RISC bastard child (like HP met RISC and then Intel forced himself onto HP, lol) has potential to do so; reviewing it might have it's success, but since Intel wants to shovel x86 ahead, it won't happen anyway 😛
Cheers!
But that's on the "server segment"... RISC has better calc/watt ratio in the lower consumption department. Something a CISC can't get without sacrificing a lot of computational power. Itanium as a RISC bastard child (like HP met RISC and then Intel forced himself onto HP, lol) has potential to do so; reviewing it might have it's success, but since Intel wants to shovel x86 ahead, it won't happen anyway 😛
Cheers!
[citation][nom]Yuka[/nom]But that's on the "server segment"... RISC has better calc/watt ratio in the lower consumption department. Something a CISC can't get without sacrificing a lot of computational power. Itanium as a RISC bastard child (like HP met RISC and then Intel forced himself onto HP, lol) has potential to do so; reviewing it might have it's success, but since Intel wants to shovel x86 ahead, it won't happen anyway Cheers![/citation]
But aren't most AMD chips nowadays just a hybridized risc/cisc architecture anyway? Furthermore, the itanium has just being repeatedly abused and treated as the ugly red-headed stepchild. At this point people are asking a rather pertinent question with regards to itanium: Why?
Intel's quite happy pushing x86 forever so long as AMD doesn't have anywhere near the R&D $$ and they're the only competition. RISC is simpler and easier to manufacture and push forward, but they always have the option of creating their own architecture; doesn't necessarily have to be ARM anyway.
The biggest issue with ARM production is that AMD is nowhere near as big as Intel (1/20th the size?) and it'll be hard for them to divide up the workload and R&D for both risc and x86 on desktop/server platforms (and now tablets and netbooks as well with their APUs). A merger to share the costs could potentially benefit both parties significantly.
But aren't most AMD chips nowadays just a hybridized risc/cisc architecture anyway? Furthermore, the itanium has just being repeatedly abused and treated as the ugly red-headed stepchild. At this point people are asking a rather pertinent question with regards to itanium: Why?
Intel's quite happy pushing x86 forever so long as AMD doesn't have anywhere near the R&D $$ and they're the only competition. RISC is simpler and easier to manufacture and push forward, but they always have the option of creating their own architecture; doesn't necessarily have to be ARM anyway.
The biggest issue with ARM production is that AMD is nowhere near as big as Intel (1/20th the size?) and it'll be hard for them to divide up the workload and R&D for both risc and x86 on desktop/server platforms (and now tablets and netbooks as well with their APUs). A merger to share the costs could potentially benefit both parties significantly.
This partnership would indeed be profitable for both. Simply put:
future = cloud computing. Low power RISC processor web based portable devices will dominate client machines. In the back end, multicore x86 processor are still required to drive applications. ARM=client, AMD=server. Cha...Ching!
future = cloud computing. Low power RISC processor web based portable devices will dominate client machines. In the back end, multicore x86 processor are still required to drive applications. ARM=client, AMD=server. Cha...Ching!
[citation][nom]WizeGuy[/nom]this has to be one of the stupidest articles i have ever read.does anyone do any f'n research anymore. ARMH is worth 2.5 times more than AMD is. Even if some bank was willing to finance AMD, they would be paying interest on those loans for infinity. In fact financially it would make more sense for ARM to buy out AMD, but then why would ARMH want buy a 2nd place AMD when ARM is the new Intel. Duh...[/citation]
Oh well, that's what you get when the the author is W.G. Wild, unfounded speculation is his stock in trade. I'm still waiting for one of two things to happen - either for him to learn something about responsible, worthy journalism, or for Tom's to stop publishing his FUD.
Oh well, that's what you get when the the author is W.G. Wild, unfounded speculation is his stock in trade. I'm still waiting for one of two things to happen - either for him to learn something about responsible, worthy journalism, or for Tom's to stop publishing his FUD.
nottheking
Distinguished
- Jan 5, 2006
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[citation][nom]djridonkulus[/nom]ARM has a P/E ratio of 104.50 (!!!), which is huge especially when comparing it to similar chip-producing companies (snip) This is a huge indication that ARM's stock is over-inflated and is soon due for a massive correction.[/citation]
...Or it could mean that it's simply naturally inflated as a result of merger talks, which tend to do that. Yes, price has gone up over a longer period than just today, but this is hardly the first rumored potential acquisition: there was prior rumors months ago that Apple might try to acquire them.
[citation][nom]pelov[/nom]But aren't most AMD chips nowadays just a hybridized risc/cisc architecture anyway?[/citation]
x86 in GENERAL is pretty hybridized. The lines between CISC and RISC were never truly defined perfectly to begin with, (just take a look on the debate over the 6502 and its derivatives) and the lines have only been blurred from both sides, such as ARM's Thumb extensions, and x86's push towards more pipelining: Netbust was a case of a basic RISC principle taken to an extreme.
...Or it could mean that it's simply naturally inflated as a result of merger talks, which tend to do that. Yes, price has gone up over a longer period than just today, but this is hardly the first rumored potential acquisition: there was prior rumors months ago that Apple might try to acquire them.
[citation][nom]pelov[/nom]But aren't most AMD chips nowadays just a hybridized risc/cisc architecture anyway?[/citation]
x86 in GENERAL is pretty hybridized. The lines between CISC and RISC were never truly defined perfectly to begin with, (just take a look on the debate over the 6502 and its derivatives) and the lines have only been blurred from both sides, such as ARM's Thumb extensions, and x86's push towards more pipelining: Netbust was a case of a basic RISC principle taken to an extreme.
I think you all need some financial literacy, read before writing garbage article. Today's closing Mkt Cap for ARM is around $14 billion, AMD is $6.25 billion. Even at 50% premium (which I would guess will be a steal). AMD just does not have money or financial wherewithal to pull a stunt like this. And on merger or joint venture what is there for ARM, nothing....
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