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How would an AMD bankruptcy affect the graphics market?

Price for graphics cards will rise, quickly and permanently. Look what happened when AMD decided to price it's 7XXX series at a premium: the price of video cards went up overall, especially at the top end (think 690, Titan, and 7990). With AMD gone, there will be little to stop Nvidia from raising prices even more since there will be little-to-no competition from the used market.
 
Sleepingforest said:
Price for graphics cards will rise, quickly and permanently. Look what happened when AMD decided to price it's 7XXX series at a premium: the price of video cards went up overall, especially at the top end (think 690, Titan, and 7990). With AMD gone, there will be little to stop Nvidia from raising prices even more since there will be little-to-no competition from the used market.
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AMD priced the 7XXX (7970) series at a premium because they were ~25%-30% faster than the competition and came in at a slightly lower price compared to the GTX580 3GB. I'm not defending AMD prices but lets not start blaming current GPU prices solely on AMD.

HD 7970 ~25% faster than GTX580 and $100 more expensive than the 1.5GB GTX580 and even cheaper than 3GB GTX580.

Titan ~25% faster than HD 7970 GE and $600 more expensive... yeah AMDs fault 🙄
 
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AMD stock is 5 cents to hitting $4. Tired of the doom and gloom threads about AMD.
 
AMD going down would basically mean Nvidia has free reign in the PC graphics market (both gaming and professional, Intel has everything else).

Seriously, what Dumb Donkey thinks that is a good thing?!
 
amd shouldn't be going bankrupt considering the subsidies and the patents they have.

If AMD did go out of business, then I don't know what would happen.
 
I don't think the CPU market would care. The GPU market would care, but I would hope they would split it before going under as, IIRC, that is what is keeping them as reasonably afloat as they are now.
 
AMD will be bought out and/or get a government bail out before it goes out of business. Intel/nvidia could get slammed with a monopoly law suit so they wouldn't want them to die out either.

I suspect AMD will be purchased by another company before anything.
 
I was going to add that also , that op would post this thread when in his link showing $3.95 for amd but the text in the link stated $ 2.60 share price and not updated for the article = fail
-if anything post like this has caused people not to buy amd and has given nv more sales plus their pay or not play attitude
 
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ICDP said:
AMD priced the 7XXX (7970) series at a premium because they were ~25%-30% faster than the competition and came in at a slightly lower price compared to the GTX580 3GB. I'm not defending AMD prices but lets not start blaming current GPU prices solely on AMD.

HD 7970 ~25% faster than GTX580 and $100 more expensive than the 1.5GB GTX580 and even cheaper than 3GB GTX580.

Titan ~25% faster than HD 7970 GE and $600 more expensive... yeah AMDs fault 🙄
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I don't dispute the claim of "faster" since it's definitely true, but I do dispute the claim of "less expensive than GTX 580 3GB." They were the same price when the 7970 was introduced, and the 580 3GB dropped in price with the 7970 until it was discontinued.

And the 7990 and 690 are priced roughly appropriately given the price of a 7970GHz or 680--they have a 10% premium because they take up less space and power, as well as running cooler than two cards in CFX/SLI. The Titan is stellar at compute (though I can't and won't defend it's usefulness to a gamer).
 
No company deserves to survive if they can't make it on their own. AMD will sink or swim based upon the market for their product.
 
Don't be idiots, AMD staying alive is obviously beneficial to consumers. The only way I would want AMD to die would be if I had a vested interest in nVidia/Intel.
 
badb0y said:
Don't be idiots, AMD staying alive is obviously beneficial to consumers. The only way I would want AMD to die would be if I had a vested interest in nVidia/Intel.
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Who in this thread said they wanted AMD to die? If AMD dies, it would be due to the market and their own mistakes.
 
zaydq said:
AMD will be bought out and/or get a government bail out before it goes out of business. Intel/nvidia could get slammed with a monopoly law suit so they wouldn't want them to die out either.

I suspect AMD will be purchased by another company before anything.
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Computing involves a far broader base than just x86 now. The real threat involves ARM SOCs, one which both intel and AMD are trying to fight. x86 doesn't encompass all devices any longer, so you're just wrong. If AMD were to go bankrupt, and i'm not saying i'd want that to happen, but in all likelihood if it happened - it would happen with no intervention.

Hardly anyone buys a desktop now, fact of the matter is - computing is much broader now, and most consumers buy a tablet as their primary and only computing device. This isn't 2002 anymore where intel/microsoft had a hand in every computing device. Ten years ago what you're saying would be true. Today, it is simply irrelevant. PCs don't have the same hold over consumers as they did years ago. Therefore, the government would not have a vested interest in keeping them afloat.
 
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Siberian said:
http://beta.fool.com/thebargainbin/2013/03/18/are-these-companies-on-the-path-to-bankruptcy/27556/

It seems like there might be some sort of short term affect, but are they a big enough player anymore for it to cause much of a change long term.
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If you consider 35-40% of the GPU market small, then I don't know what to tell you.

As others have stated, AMD going bankrupt would allow Nvidia to price GPUs to their best advantage as it would be a monopoly at that point. Money could be siphoned off R&D to increase profits and performance would taper off.

Intel has gotten away with 5-10% performance increases each gen and they still make a healthy profit. I'm sure Nvidia could do the same. We need both companies to stay afloat.
 
If AMD goes bankrupt, each architecture would probably last 4 years, and just involve more overclocking, it would be like the next Haswell for every generation, 5% more performance for the same price.
 
blackened23 said:
Computing involves a far broader base than just x86 now. The real threat involves ARM SOCs, one which both intel and AMD are trying to fight. x86 doesn't encompass all devices any longer, so you're just wrong. If AMD were to go bankrupt, and i'm not saying i'd want that to happen, but in all likelihood if it happened - it would happen with no intervention.

Hardly anyone buys a desktop now, fact of the matter is - computing is much broader now, and most consumers buy a tablet as their primary and only computing device. This isn't 2002 anymore where intel/microsoft had a hand in every computing device. Ten years ago what you're saying would be true. Today, it is simply irrelevant. PCs don't have the same hold over consumers as they did years ago. Therefore, the government would not have a vested interest in keeping them afloat.
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AMD ain't fighting ARM, it's the opposite. They're embracing and holding d*cks.

In fact the ones that would have a hard time would be Intel out of the ARM ecosystem and Nvidia out of the HSA foundation.
 
If AMD declares banckruptcy, I would expect to see the stockholders wiped out and the bondholders converted to the new equity holders. I would also expect several pieces of non-core IP to be sold to third parties and for the judge to rework the Wafer Supply Agreement. I would not expect an end to all AMD future chips. If you dramatically reduce out the ATi debt the company incured, they would be close to break even. Right now AMD has about $1.0 bn. in cash, so unless they have a "prepack" bankruptcy in the works, I don't see a chapter 11 in the next few quarters, although I haven't looked at their covenant package which could contain some triggers to make them file sooner.
 
AMD could go bankrupt but that doesnt mean the end of their graphics division. Usually bankrupt companies are broken apart and their assets sold off to others. And their graphics division is probably their most valuable part. Other players, namely Intel, Samsung, whoever, may likely show an interest for it.
 
My company of 13 years went bankrupt twice. Each time the company improved. Write off your debt and grow. Bankruptcy is not always a bad thing. AMD CPU and GPU is not going anywhere anytime soon. F, intel and Nvidia would have to prop them up to avoid monopoly lawsuits if it came to that.
 
OP is dreaming of it, but it's not going to happen, at least the GPU tech used will continue whether it's under another name.

I guess the site posted fool.com should already tell you something.
 
I doubt it will happen any time soon. The thing most likely to see them off is the impending implosion of the discrete GPU market, so I guess the main result would be letting NVidia pick up their marketshare and eke out a couple more years in a shrinking market.
 
I love how even discussing AMD going bankrupt has some people claiming that we want it to happen. Like it is so far fetched that it could happen. Ludicrous. 🙄

Personally, I see it happening either the way amenx or Sohaltang described. In one case, the graphics division is broken off or bought out by other company. This halts the poor performance from the CPU division from bringing down the graphics division, and hopefully no more engineers need to be let go. In the other case, the debt is absolved, the company is restructured and becomes a better run AMD.

Oh God, now that I've talked about AMD going bankrupt I will be labeled as an AMD-hater and will be shunned by some posters! :whiste:
 
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