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Nomura suggests AMD's (AMD -8.4%) Q2 warning isn't just demand-related, but also reflects a...
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Tuesday, July 10, 2012, 10:32 AM ETNomura suggests AMD's (AMD -8.4%) Q2 warning isn't just demand-related, but also reflects a weakening desktop CPU position in the wake of Intel's (INTC -1% - previous) Ivy Bridge launch. Goldman also thinks market share issues could be a factor. The fact Intel and Nvidia (NVDA -1.3%) are off just modestly indicates the Street thinks some of AMD's problems are company-specific. Jefferies, however, argues low inventories, lower multiples, and stable gross margins make AMD a buy.
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This news story has 8 comments:
AMD has entered the beginning of their death throes.
My last 2 CPU's have been Intel as they have even taken over the "Bang for your buck" segment which is where AMD shined several years ago.
AMD also has an issue where they overhype their products then under-deliver that's business 101 of things not to do and they've done it with their last 2 chips.
Only issue here is if we lose AMD competition even with how lopsided the desktop arena is now it's a big blow to consumers and I don't look forward to that.
Intel still has a considerable amount of catching up when it comes to making a power efficient processor that doesn't get hot enough to melt plastic. Their entire history has been about throwing more power at their processors to make them faster.
So Intel faces challenges but not from AMD. Bear in mind that MS Office will run on the ARM version of the Surface. That is a major shot across the bow of the S.S. Intel. Consider that most business users really only need Office and a web browser. If the Surface can do that with 1/10th the power requirements of an x86 processor then that makes the threat pretty stark.
Does it?
Initial reviews of Intel's mobile processors powering Android devices find them competitive.
"Their entire history has been about throwing more power at their processors to make them faster."
Actually, no, mikeurl. Intel was not always a processor manufacturer. Originally they just made memory chips, then started making processors, then when the Japanese crushed the memory market, Intel completely changed its profile and abandoned the memory market and embraced the processor market. They re-invented themselves again when they decided to dominate the server market, and again when they introduced the Centrino platform with integrated wireless, which really kick-started the wireless computing movement. So, now that they've turned their attention to the mobile space, I expect them to do extremely well in that arena, also...