AMD facing 20% revenue decline

[Phynaz]

The pain is being felt differently from one chipmaker to the next: Many analysts agree Intel will weather the slump better than AMD. Osha wrote that AMD's inventory troubles are worse than those faced by Intel. He expects Intel to see its processor revenue decline by only 8%, vs. a 20% slide for AMD. "It's apparent that Intel is likely to emerge from the quarter in better shape than AMD, and we expect Intel's Q2 outlook to be better than AMD's as well," he wrote.


Link

 

[Avalon]

K.

 

[yacoub]

Originally posted by: Avalon
K.

 

[KingstonU]

I bought AMD stocks a couple months too early :roll:

 

[BladeVenom]

I would think Intel should be having more inventory problems. Who's buying all those crappy Pentiums that Intel is still making?

 

[Phynaz]

Originally posted by: BladeVenom
I would think Intel should be having more inventory problems. Who's buying all those crappy Pentiums that Intel is still making?

Somebody, obviously:

"Merrill Lynch comments on AMD after they a chance to sit down with the company's top management recently to see just how deep the hole is. The market may still not appreciate just how much money AMD is likely to lose in Q1 and Q2 as it struggles to work off 90nm product inventory. They are revising their earnings estimate for 2007 down again, to a GAAP loss of $1.29, and they expect AMD to burn through about $900 million in cash by the end of June. The firm is Neutral - AMD's near-term problems are too great to support a more positive stance even at the stock's current level."

http://biz.yahoo.com/seekingalpha/070404/31499_id.html?.v=1

 

[Kur]

Wasn't all those P4's going to china for dell on their cheap PC thing?

 

[Tarrant64]

AMD will hang in there. They always do.

 

[brxndxn]

Originally posted by: Phynaz

Originally posted by: BladeVenom
I would think Intel should be having more inventory problems. Who's buying all those crappy Pentiums that Intel is still making?

Somebody, obviously:

"Merrill Lynch comments on AMD after they a chance to sit down with the company's top management recently to see just how deep the hole is. The market may still not appreciate just how much money AMD is likely to lose in Q1 and Q2 as it struggles to work off 90nm product inventory. They are revising their earnings estimate for 2007 down again, to a GAAP loss of $1.29, and they expect AMD to burn through about $900 million in cash by the end of June. The firm is Neutral - AMD's near-term problems are too great to support a more positive stance even at the stock's current level."

http://biz.yahoo.com/seekingalpha/070404/31499_id.html?.v=1

Eh.. the analysts aren't there to make US money.. so, they'll say a stock is a POS even after the market has already reacted to it in order to keep the price down..

 

[ectx]

... Don't beleive the analysts... I sold my NVDA when all analysts were down on them at ~ 8.5 (before split); now it is at ~31.... Silly me.

Of course, I braved against the analysts' negative sentiment and elected to convert my ATI share to AMD last Decemeber. The price came down sigificantly and I finally gave in and sold my AMD.

.... Unfortunately I think this time the analysts may be right.

I do hope to see AMD turn this around but I have not seen the light at the end of the tunnel yet. I still think AMD's current line to be solid (this is why I bet on them last December) but they cannot command the premium prices after Intel C2D was released.

... Well I will not trust the analysts. I think I'd rather set a poll at several forums and figure out if a tech company would do well

 

[KB24]

So we should all expect AMD to drop tomorrow.

I think I'm gonna pick some up . LOL

 

[Acanthus]

Im not at all shocked that the price was is hitting them in the pocketbook.

I worry about how deep AMDs prockets are.

 

[Viditor]

Originally posted by: KB24
So we should all expect AMD to drop tomorrow.

I think I'm gonna pick some up . LOL

Exactly...it's not like everyone isn't expecting a dismal Q2 for AMD (historically it's always their worst quarter), but the more gullible investors read these analyses and dump their stocks. The smart players (and this definately includes ML) will be buying heavily on the lows this next quarter...

Personally, I thank God for these reports...they have literally made me $Millions over the past 7 years or so. I too am planning to invest heavily in AMD over this next quarter (I expect to be fully invested by Q3...my goal is 50,000 shares).

 

[f4phantom2500]

heh, sounds like AMD should have made all those AM2 X2's 939's instead.

 

[Cookie Monster]

Didnt the netburst line all ended up EOL like a long time ago? the rest of inventory going to that deal in china?

 

[Viditor]

Originally posted by: Cookie Monster
Did the netburst line all ended up EOL like a long time ago? the rest of inventory going to that deal in china?

C2D only accounts for about 40% of Intel's current production...
However, Netburst is due to be EOL by the end of summer I believe.

 

[SexyK]

Originally posted by: Acanthus
Im not at all shocked that the price was is hitting them in the pocketbook.

I worry about how deep AMDs prockets are.

Unfortunately, right now AMD is so far in debt that their pockets are inside out. They can thank the ATI acquisition for that. It's so bad that it seems that they're having problems securing more loans at this point. It's a dangerous time for them right now.

 

[KB24]

There stock is up 1% as of now (15 Cents) LOL .

So much for my prediction. I want some badddddd toooo.

 

[CalvinHobbes]

Isn't the market closed today? I bought some when it was @ 15.00, I have no doubt the price will turn around.

 

[Assimilator1]

Originally posted by: Tarrant64
AMD will hang in there. They always do.

I hope so!

 

[MotF Bane]

I know where the old Pentiums are going: high schools. Intel puts on massive discounts, and maybe even gets some sort of tax write-off for helping out a school. My school just got/bought 30 new computers, all with P4.

 

[Viditor]

Originally posted by: MotF Bane
I know where the old Pentiums are going: high schools. Intel puts on massive discounts, and maybe even gets some sort of tax write-off for helping out a school. My school just got/bought 30 new computers, all with P4.

True...but the biggest "dumping ground" is Asia.
AMD did exactly the same thing with the K6s when the Athlon was introduced...their marketshare shot way up in the first year, but their profit didn't reflect that fact. Basically, they dumped their entire of inventory of K6 (mostly in Asia) at near cost as they converted their manufacturing to all Athlon.

 

[mithrandir2001]

Originally posted by: Kur
Wasn't all those P4's going to china for dell on their cheap PC thing?

We should sue to block that.

The last thing we all need is China, with all their coal-burning electricity plants, getting a shipment of low performance-per-watt Netburst CPUs.

 

[BladeVenom]

That explains why China is building all those nuclear power plants.

 

[VinDSL]

AMD will do fine, when they start selling their chips for 10-cents on the dollar... or whatever ppl think they're worth...