AMD stock takes another tumble

[Gizmo]

The news just keeps getting worse for AMD. According to an article at Forbes,American Technology Research analyst Doug Freedman downgraded the stock from 'buy' to 'neutral', causing the stock price to drop about 2.3% in value, and revised his target from $17 to $11. As a consequence, the stock price hit a new year low. In addition, he indicated that he doesn't see the potential for anything positive from AMD for at least 3-4 months.

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[keithwalton]

I have been watching amd's stock for the last week or so, it dropped from $12 to $10 after the phenom launch but it has been fairly stable in the low $10's since then, though it did dip into single figures on tuesday. people are jumping ship though as its unlikely that there is going to be any good news soon.

Tuesdays drop was more due to amd fabless rumors (and sale of 130nm tech) resurfacing.

AMD's stock dropping into single figures is the first time its done so since they broke back into the double digits in aug 2003. (they dropped into single figures in june 2002 and stayed there until aug 03)

[Gizmo]

AMD can't hope to compete with Intel if they go fabless, IMO. It's highly unlikely that TSMC, UMC, or Chartered can make the chips for any less cost than AMD, nor is there any reason to believe that going fabless would magically cause them to have better yeilds. IMO, 'fabless AMD' is a classic example of why you don't manage your company according to what Wall Street wants. While getting rid of the fabs would net short-term gains for AMD, it would be devastating in the long term to AMD's competitiveness.

[Daniel ~]

A world in which Intel is unopposed...brrrrrr it's cold. I wonder what they are doing in Asia? Any new chip creators shaping up? China might be interesting in this regard, I wonder what they're doing in Asia?

[Gizmo]

Originally Posted by Daniel ~

A world in which Intel is unopposed...brrrrrr it's cold. I wonder what they are doing in Asia? Any new chip creators shaping up? China might be interesting in this regard, I wonder what they're doing in Asia?

Linux.com :: China puts hopes in Loongson CPU

China apparently also have a license to manufacture AMD's Geode processor, though they don't seem to have done much with it; this news is over 3 years old: AMD licenses Geode x86 processor to China | InfoWorld | News | 2005-10-24 | By Sumner Lemon, IDG News Service

[Daniel ~]

I was just thinking ya know? 1,000,000,000 Chinese, one of them is bound to know how to make a better processor! Look at the odds!! ":O}

[cloasters]

If AMD sells its Fabs it's committing suicide. They were hard won, management should remember that. Should I start a "I hate Hector Ruiz" site? AMD, for God's sake, make your chips with a smaller die size. By hook or by crook!

[Gizmo]

Actually, from what I can see, Hector is resisting the Street on that issue; they are even considering the possibility of building a fab in India, and I seem to recall that they are probably going to go ahead with the plant in New York state.

However, all those plans take money. They've got to figure out how to make a silk purse out of a sow's ear here, or their future plans won't matter.

[cloasters]

It's a shame that they can't pump out smaller die sizes from the fabs they already have. Do they really need to spend big money that they don't have on a new plant?