Is Future Existince of AMD Relevant to GPU Purchase

[Lonyo]

Why would the future of AMD impact my purchasing decisions over a component that I will keep probably for 2 maybe 3 years tops, and which if it breaks I can easily replace?

Plus you don't buy from AMD directly, and if you bought a non-AMD specific brand card, they would probably send an NV replacement if it broke within the warranty period and AMD had gone belly up.

The future of AMD is irrelevant to the future of my current graphics card. The card won't cease working because the company dies.

And 99% of games work fine on a single card without needing specific updates.

 

[f1sherman]

Thing to note - AMD is VERY resilient. Only 2 data points with Altman Z-Score > 1.81 (although this is a new historic low)
Lookie:


Advanced Micro Devices Inc 10-Y

History of Altman Z-Score
Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
1.29 1.91 3.13 1.39 -0.42 -1.38 0.43 1.64 0.86 -1.39

GuruFocus explains Altman Z-Score
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Altman Z-Score is calculated with this formula:

Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5

where

X1 = working capital/total assets,
X2 = retained earnings/total assets,
X3 = earnings before interest and taxes/total assets,
X4 = market value equity/book value of total liabilities,
X5 = sales/total assets.

The zones of discrimination were as such:

&#8220;Distress&#8221; Zones 1.81< &#8220;Grey&#8221; Zones< 2.99 - &#8220;Safe&#8221; Zones

In its initial test, the Altman Z-Score was found to be 72% accurate in predicting bankruptcy two years before the event, with a Type II error (false negatives) of 6% (Altman, 1968). In a series of subsequent tests covering three periods over the next 31 years (up until 1999), the model was found to be approximately 80%&#8211;90% accurate in predicting bankruptcy one year before the event, with a Type II error (classifying the firm as bankrupt when it does not go bankrupt) of approximately 15%&#8211;20% (Altman, 2000).[1]