Seeking Alpha

Nomura suggests AMD's (AMD -8.4%) Q2 warning isn't just demand-related, but also reflects a...

Nomura 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.
From other sites
Comments (8)
  • wigit5
    , contributor
    Comments (4119) | Send Message
     
    Just ordered my Ivy Bridge the other day can't wait to put it together, should see significant gains going from a pre-sandy bridge chip to the Ivy.
    10 Jul 2012, 10:39 AM Reply Like
  • mikeurl
    , contributor
    Comments (431) | Send Message
     
    With the rise of mobile Intel no longer has a reason to keep AMD in the x86 space. They are now free to spend AMD into bankruptcy and they will. AMD cannot possibly keep up with the R&D needed to keep up with Intel's x86 roadmap. As the sizes get down to 15nm the capex needed expands enormously.
    10 Jul 2012, 11:36 AM Reply Like
  • Russ Fischer
    , contributor
    Comments (2587) | Send Message
     
    Finally, someone "gets it".
    AMD has entered the beginning of their death throes.
    10 Jul 2012, 08:26 PM Reply Like
  • Aristotle2k
    , contributor
    Comments (214) | Send Message
     
    Thats sad, I always rooted for AMD even had stock but I bailed when it spiked to $6 a couple weeks back.

     

    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.
    11 Jul 2012, 02:40 PM Reply Like
  • mikeurl
    , contributor
    Comments (431) | Send Message
     
    Well, the good news is that the traditional PC form factor is changing. The competition for Intel isn't going to be AMD or in x86. it is going to be in tablets and other more mobile devices that use less power.

     

    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.
    12 Jul 2012, 11:58 AM Reply Like
  • kmi
    , contributor
    Comments (4040) | Send Message
     
    "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."

     

    Does it?

     

    Initial reviews of Intel's mobile processors powering Android devices find them competitive.
    12 Jul 2012, 12:13 PM Reply Like
  • J.D. Welch
    , contributor
    Comments (1990) | Send Message
     
    Exactly, kmi! The power consumption of the Atom chips used in the Reference Design used by Orange, Lava and Lenovo are comparable to the ARM chips also running Android.

     

    "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...
    12 Jul 2012, 12:35 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9081) | Send Message
     
    Good, someone who gets it. Intel has many key advantages over the ARM SoC vendors. Not the least of which is incredible fabs.
    16 Jul 2012, 09:14 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector