AMD at Citi Global Technology Conference (Seeking Alpha)

[mrmt]

All the focus on margin is as i have stated before just plain stupid. Who else operates business with 40% margins. I never understanded it. Like we only live in an Apple world and not where the state bonds are 1%.

I don't think it's plain stupid. The gross margin is a factor behind their R&D budget, and a smaller budget within the same revenue numbers means they cannot sustain bleeding edge developments.

The plain problem with the new semi custom strategy is then what do they do?

What comes after the obvious consoles?

That's a good point, and the billion dollar question for AMD.

There are plenty of medical equipment that needs or will need more GPU power, and here AMD is a prime candidate to get business. Cars should also represent a new niche, as is banking... The problem with this? It's always a race to the bottom, very low margins and volumes are not that great except for a few niches. They may try get into small appliances, but margins at consoles will be a dream compared to those in that market.

In any case, that kind of business is the perfect match for AMD strategy of incorporate other's IP into their design. They add lagging edge capacity to their chips without spending too much money. They should be paying just the integration costs in the design and royalties per chip sold.

 

[krumme]

Mubadala ATIC should have protected their AMD investment and let Gloflo sink or swim.

I think their management hurt both. And still do.

I ties both to a contract that is not customer oriented. But shortsighted invester oriented. It looked gf loopsided but it was a two sided sword anyway.

It have prevented both at swimming.

And mubadala lost money tying them to this rock.