AMD Is In Real Trouble

I remember about a year ago losing a reader who had been boasting that AMD (AMD) would knock off the industry’s 800-pound gorilla, and I called AMD a dog. Well look who's smiling now.

Yes, I even called Intel (INTC) money in the bank under 18, referring to the company as Inteller.

Yesterday, following the close, AMD is in it deep. How low can this stock go?

Where are all the HB&B touts who had a large segment of America believing wrongly that AMD was the best thing since sliced bread? The company is now in trouble. It may need to be restructured, which by the way is not a good thing for shareholders.

Disclosure: No position (except maybe sympathy for the suckers who bought that story).

AMD vs. INTC 1-yr chart

Comments

[Jon T:]

And where have all those people gone who said Apple's decision to go with Intel rather than AMD was a big mistake?!

2007 Apr 20 08:29 AM

[eduardo gon...:]

That is nothing. The real war that got fanboys enraged was good old 3dfx vs NVDA. People childishly identified themselves with companies as if they were football teams and a simple discussion about a technical issue rapidly degenerated into the nastiest personal attacks. When 3dfx went belly up, the fanboy base even wrote an internet petition so they didn't sell the company to evil Nvidia.

Although not as shameful, the INTC/AMD thing is getting a little too far. I personally like AMD and hope they survive but I wouldn't like to be on their shoes right now.

2007 Apr 20 12:43 PM

[Malkiel:]

AMD has too much real technological and production capability to just go bust. They are a valuable asset to somebody and I can't see them hitting the floor before getting bought out. For strategic reasons Apple wouldn't want to be left facing a monopoly chip provider and using some of their vast cash to buy AMD at the right price, and then using their product, would make perfect business sense (changing out technology isn't something they've shied away from in the past). The same logic would apply to Hewlett Packard...

2007 Apr 20 04:42 PM

[Wannabe Maven:]

Apple buying AMD and becoming a microprocessor designer and manufacturer? Are you really thinking here?

2007 Apr 20 04:58 PM

[Nova Law:]

Let's review. Cara slams AMD on April 20, when it closed at 14.16. In the premarket this morning it's trading at 14.80, up almost 5%. Yet another blown call by Cara - one of many. He'd rather have you chase near-penny mining stocks. Bre-X anyone?

2007 Apr 26 08:21 AM