AMD lawsuit doesnt seem to be hurting the stock.

[HDTVMan]

Partially I felt the AMD lawsuit was a publicity stunt to gain attention but I also knew deep down inside that Intel wasnt playing nice in the sandbox. Interestingly enough Investors dont appear to be running away from AMD but embracing it a bit. The stock seems to be rising.

http://finance.yahoo.com/q?s=AMD

Seems more than just the germany issue and amd's technology lead driving it.

Thoughts?

 

[DrMrLordX]

It probably means that investors expect AMD to win their lawsuit, especially now that the EU has "raided" Intel's offices for documents.

 

[thecoolnessrune]

The EU has it out for Intel and Microsoft. They like to "raid" their offices every chance they get. The whole case between Microsoft and the EU seems more of a Microsoft, because you are doing too good, and are making good products outselling our European counterparts, we demand that you stop production and development immediately. And make sure you pay out money to your competitors. And make sure you tell them how you made everything so they can catch up to you."

 

[DrMrLordX]

Not that I'm a huge proponent of the EU or anything, but which European counterparts are being outsold by Microsoft(or Intel, for that matter?). Harassing Intel and/or hitting them with anti-trust would benefit another American firm(AMD) the most.

 

[jpeyton]

Winning their lawsuit will only have one outcome for AMD...more money.

 

[nippyjun]

They are reporting earnings tomorrow. If i'm not mistaken their stock often rises before the earnings announcement than falls after.

 

[Jeff7181]

Why would AMD's stock drop?

 

[Kell]

Originally posted by: thecoolnessrune
The EU has it out for Intel and Microsoft. They like to "raid" their offices every chance they get. The whole case between Microsoft and the EU seems more of a Microsoft, because you are doing too good, and are making good products outselling our European counterparts, we demand that you stop production and development immediately. And make sure you pay out money to your competitors. And make sure you tell them how you made everything so they can catch up to you."

No, it's more of a "Microsoft, since your home country already found you guilty as hell of all this stuff and barely even slapped your wrist, we have to see that you're at least held accountable on OUR side of the pond. Now bend over."

Don't make the mistake of thinking that Microsoft or Intel's hands are lily-white. The "all businesses do this stuff" excuse doesn't work either, because not all businesses are virtual monopolies in their respective marketplaces. Monopolies must live by different (stricter) rules.

 

[HDTVMan]

Originally posted by: Jeff7181
Why would AMD's stock drop?

Something called Spansion which is their memory division which was good a while back but has been a boat anchor the last year dragging the company back.

 

[Jeff7181]

Originally posted by: HDTVMan

Originally posted by: Jeff7181
Why would AMD's stock drop?

Something called Spansion which is their memory division which was good a while back but has been a boat anchor the last year dragging the company back.

That's understandable... but I don't see what that would have to do with the lawsuit against Intel.

 

[HDTVMan]

Originally posted by: Jeff7181

Originally posted by: HDTVMan

Originally posted by: Jeff7181
Why would AMD's stock drop?

Something called Spansion which is their memory division which was good a while back but has been a boat anchor the last year dragging the company back.

That's understandable... but I don't see what that would have to do with the lawsuit against Intel.

None just answering the question on why would AMD's stock drop. The last couple times has been because of the memory division. Intel undercut them and drop spansion out of a few places. Probably also a part in the lawsuit.

 

[ponyo]

Rising tide lifts all boats. I don't think the lawsuit had anything do with the rise in AMD stock price. SOX has been on a tear recently and have rallied nicely. All my semi stocks have done well lately. It's not just AMD. Not that I'm complaining. We needed little summer rally. I own AMD shares.

 

[glugglug]

Originally posted by: Jeff7181

Originally posted by: HDTVMan

Originally posted by: Jeff7181
Why would AMD's stock drop?

Something called Spansion which is their memory division which was good a while back but has been a boat anchor the last year dragging the company back.

That's understandable... but I don't see what that would have to do with the lawsuit against Intel.

Actually I wouldn't be surprised if it comes up. Part of the reason Spansion has done so badly is that Intel has been dumping flash memory into the market below cost. It is only a small portion of Intel's business so they can eat that loss but for AMD it is like 40%.

 

[Fox5]

Originally posted by: thecoolnessrune
The EU has it out for Intel and Microsoft. They like to "raid" their offices every chance they get. The whole case between Microsoft and the EU seems more of a Microsoft, because you are doing too good, and are making good products outselling our European counterparts, we demand that you stop production and development immediately. And make sure you pay out money to your competitors. And make sure you tell them how you made everything so they can catch up to you."

Unfortunately, partially because of that, I feel the American courts will have a similar attitude.

"What?! AMD! A foreign company is assaulting our beloved Intel! Down with them!"

 

[CheesePoofs]

Originally posted by: Fox5

Originally posted by: thecoolnessrune
The EU has it out for Intel and Microsoft. They like to "raid" their offices every chance they get. The whole case between Microsoft and the EU seems more of a Microsoft, because you are doing too good, and are making good products outselling our European counterparts, we demand that you stop production and development immediately. And make sure you pay out money to your competitors. And make sure you tell them how you made everything so they can catch up to you."

Unfortunately, partially because of that, I feel the American courts will have a similar attitude.

"What?! AMD! A foreign company is assaulting our beloved Intel! Down with them!"

Isn't AMD based in Texas?

 

[Aegeon]

Originally posted by: CheesePoofs
Isn't AMD based in Texas?

AMD has a major fab in Texas, they are based and have their corperate headquarters in California near San Jose. Given Intel has a bunch of fabs out of the country, its not clear to me that right now Intel has a significantly higher percentage of their production facilities in the US than AMD does at the moment.

 

[Fox5]

Hmm, I thought AMD was a German company. All AMD news seems to focus around Germany, and it's been said that they're supported by German taxpayers, but maybe because their major fab is in Dresden?

What fab does AMD have in Texas? I thought their two major fabs were Fab 30 and Fab 36, which I have no idea where they're located, just that one or both is in Dresden.

 

[Aegeon]

Originally posted by: Fox5
Hmm, I thought AMD was a German company. All AMD news seems to focus around Germany, and it's been said that they're supported by German taxpayers, but maybe because their major fab is in Dresden?

What fab does AMD have in Texas? I thought their two major fabs were Fab 30 and Fab 36, which I have no idea where they're located, just that one or both is in Dresden.

Fab 36 hasn't been completed yet, so for the moment there is only one operational fab in Germany. AMD's Fab 25 is in Austin Texas, and used to be where they produced all their CPUs.

Located in the gently rolling hills on the outskirts of Austin, Fab 25 is visible from many miles away. It is an enormous facility -- 950,000 square feet in all -- with 123,000 square feet of Class 1 clean room space.

Fab 25 was originally designed as a logic fab to support AMD's processor business. The fab is now a dedicated Spansion Flash memory facility after an extremely successful conversion process which involved simultaneously ramping down logic production and ramping up Flash memory production. Most recently Fab 25 commenced volume production of 64-megabit and 128-megabit Spansion Flash memory devices using 110nm floating gate technology.

http://www.amd.com/us-en/Corporate/AboutAMD/0,,51_52_502_507,00.html

Other key facilities are located in the US.

The Submicron Development Center (SDC), which became operational in 1990, now represents a cumulative investment of more than $700 million. The Sunnyvale, California facility supports advanced process technology development efforts for Spansion? Flash memory products utilizing the very latest in semiconductor manufacturing equipment. Working with its key equipment suppliers, AMD helps to refine semiconductor equipment and processes to better meet its future needs as well as the future needs of the semiconductor industry.

The SDC provides the capabilities and the environment necessary to make this collaboration possible. In addition, the SDC works closely with our primary manufacturing facilities to help ensure smooth transfer of process technology into volume production.

http://www.amd.com/us-en/Corporate/AboutAMD/0,,51_52_502_506,00.html

 

[Fox5]

What's up with AMD closing down all its old fabs? Well, basically redicating them to things not so worthwhile?

Fab 25 has 110nm fabrication? They could have been making cpus on that process.
And fab 30 is making 90nm then? So once fab 36 comes online and is making 65nm, then fab 30 is basically dead?

 

[Viditor]

Actually Fab36 is pretty much completed, they just aren't doing production runs yet...
They've been turning out 65nm test runs since Feb...
Fab 30 will continue in production for many years to come. Not everything AMD makes will be 65nm...for instance the Semprons will probably stay 90nm for a year at least. Then there's the embedded chips, chipsets, etc...

 

[Lonyo]

Originally posted by: Fox5
What's up with AMD closing down all its old fabs? Well, basically redicating them to things not so worthwhile?

Fab 25 has 110nm fabrication? They could have been making cpus on that process.
And fab 30 is making 90nm then? So once fab 36 comes online and is making 65nm, then fab 30 is basically dead?

The cost of retooling Fab30 would be quite a lot, but they will still make 90nm processors.
Hell, it was only a few days ago that AMD shipped their last 130nm K7 processors, so I think 90nm processors (especially budget ones) will be seen for a while yet, probably 2+ years at the VERY least, and then things like chipsets can be manufactured on the 90nm process.
Also, why produce 110nm processors when you can make 90nm processors and save even more die space?
They move fabs onto making other things because, well, it's the most cost effective way to do things, it means old technology still gets used, while they don't have to go through the expense of re tooling a fab.

Originally posted by: Jeff7181
Why would AMD's stock drop?

Many reasons, a couple of obvious ones I can think of are investors fearing that the claims are a load of bunk and losing faith in the company as a whole (especially management), or investors fearing that there will be a marketplace backlash, and partners (such as motherboard manufacturers/system manufacturers) will decline to do business with AMD because they are getting dragged into this and having their reputations possibly damaged.
Bad partner relations for a company can mean less influence in the market, so investors lose faith.

 

[HDTVMan]

All this talk about manufacturing. I am quite certain that AMD's fabs arent running full steam and could certainly make a lot more chips than they are currently.

 

[Fox5]

People always say AMD doesn't have enough fab space to make enough chips for OEMs, if that's true then 110nm production, plus 90nm production, plus 65nm production would surely be enough. It would also help end overclocking, low end chips could be 110nm, 90nm chips would be mid end, and 65nm chips would be high end. The chips would be physically unable to overclock.
Plus, the CPU business has been a lot better for AMD than the flash business.

 

[ZOXXO]

Has it hurt Intel's stock?

 

[miketheidiot]

Originally posted by: ZOXXO
Has it hurt Intel's stock?

intel certainly hasn't gone up as much as amd.