Kris Tuttle

Overbought Stocks

Truly silly stuff! Amazing.

Struggling AMD Is Still Searching for Inspiration

For those actually trying to do work on AMD. ATI is a pretty interesting and valuable asset. However the AMD CPU business needs help. The cost of being the game is higher than ever and AMD may not be able to scale up; we'll see.

Don't forget to look at the whole capital structure. Debt plays a major role, as do assets.

Technologically there is still lots of opportunity but AMD as an independent company may not be able to take advantage of it. With NVDA also in the dumps it makes the M&A outcome even less visible.

It's an interesting situation but INTC right now has all the momentum and resources in X86, they definitely "get" the high end graphics market even if NVDA and ATi/AMD are the leaders. There could be a positive wild card for AMD in the anti-trust work going against INTC. It could prod a buyer from Europe to buy AMD on the cheap.

Investing in AMD requires a pretty complete research effort. If I were making a bet I'd say they get acquired by a European technology company but given the debt structure knowing the equity value stub isn't simple.