While AMD (AMD -10.2%) is touching levels last seen in early '09 following its Q3 warning, Intel...


While AMD (AMD -10.2%) is touching levels last seen in early '09 following its Q3 warning, Intel (INTC -0.2%) and Nvidia (NVDA -0.8%) haven't moved much: the Street is making it clear it views a lot of AMD's problems as company-specific. "AMD’s competitive position is so much weaker than in the past," says Evercore's Patrick Wang, no stranger to criticizing the company. SA's Ashraf Easaa thinks CEO Rory Read, whose 14-month reign has been quite tumultuous, now faces intense scrutiny.

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Comments (9)
  • Sal Marvasti
    , contributor
    Comments (1353) | Send Message
     
    Funny, analystis did not read the Gartner report. PC shipments are down 8%. No one is queuing for windows 8 either unfortunately. How intel and nvidia will escape 8% drop is beyound me.
    12 Oct 2012, 12:15 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (9521) | Send Message
     
    Salman,

     

    Nvidia only sells *discrete* graphics chips into the traditional PC space. This is the top 30-35% of the market, and not the "average" PC user. Also, Nvidia's discrete GPUs can be purchased in the channel, so PC sales are not necessarily discrete GPU sales.

     

    That being said, Nvidia can very well still get hurt here. It's just less vulnerable than the others, not immune.
    12 Oct 2012, 12:18 PM Reply Like
  • joshpritchard
    , contributor
    Comments (124) | Send Message
     
    nvda may still yet warn, but as of a month ago at an investor conference they were still guiding for Q/Q growth of 15% (after doing the same in Q2 relative to Q1). They're winning market share in the discrete GPU market, and are supposedly benefitting from the [delayed] ramp to ivy bridge-based devices (these are the devices on the upper end of the market, that still have discrete GPUs). They also won back Apple as a key customer, and are supposedly ramping production to ship into design wins downstream from the Macbook Pro 15" Retina as well as down through the Mac and iMac lines, whenever they're updated. They have guided that they will remain supply-constrained throughout the second half. The same can't be said about the PC market, of course.
    Also you have the Microsoft Surface RT production ramp taking place in their Q3, as well as expanded production of the Nexus 7s (among other Tegra wins).
    12 Oct 2012, 12:22 PM Reply Like
  • Sal Marvasti
    , contributor
    Comments (1353) | Send Message
     
    So does AMD also sell discrete upgrades. Read the AMD report about lower demand across all product lines. Then look at 670 and 680 price drops.
    12 Oct 2012, 02:58 PM Reply Like
  • joshpritchard
    , contributor
    Comments (124) | Send Message
     
    NVDA has reiterated that they're supply-constrained with Kepler GPUs and will continue to be supply-constrained throughout the end of the year. They are not having a demand problem.

     

    Also note that NVDA has been trumpeting their market share gains in the discrete GPU business.
    12 Oct 2012, 04:18 PM Reply Like
  • Russ Fischer
    , contributor
    Comments (3018) | Send Message
     
    AMD is in a death spiral. Most of the business goes to Intel.
    12 Oct 2012, 12:29 PM Reply Like
  • elsrmp56
    , contributor
    Comments (170) | Send Message
     
    Long and strong with INTC. Great buying opportunity right now. Hard to pick n exact bottom but down the road you will be happy if pulling the trigger now. With a 4% dividend to boot. IMHO
    12 Oct 2012, 02:07 PM Reply Like
  • Sal Marvasti
    , contributor
    Comments (1353) | Send Message
     
    Dividends like life are not guaranteed.
    12 Oct 2012, 02:56 PM Reply Like
  • Trendyglitzcompany
    , contributor
    Comments (561) | Send Message
     
    AMD will see more % increase long term at these levels or lower than NVDA but both should see good increases which is why I bother to average down the two. I don't see a going concern for either company but I do think the chances of an AMD buyout is likely this time around. Keep in mind true value here over debt load and figure patents in there too. I think a company will come in soon and gobble AMD up for double digit numbers but which company, I'm not sure.

     

    JMO on two good stocks.
    13 Oct 2012, 05:25 PM Reply Like
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