AMD slides on sales warning

[gr8mikey]

Not too surprising really. Given intel's extreme price cuts and typically slower 2nd quarter demand.

AMD revenue to fall 9% from Q1

 

[TechnologyCoordinator]

Yup, basically competition is so furious between AMD and Intel this year that prices have been lowered across the board! Bad for AMD, good for us!

 

[gr8mikey]

Probably gonna be bad for intel as well this quarter. I wouldn't be surprised if intel issues a similar warning in the coming days.

Lower prices coupled with softer demand is never ever good for revenues

 

[Ycon]

The difference is that Intel is sitting on a nice pile of money.

 

[BaronMatrix]

I was afraid this would happen. Both stocks have tumbled since the pricing announcement of Core 2 and the P4 drops. And with no Vista for back to school, sales may even be lighter as OEMs prepare the new HW.

At least AMD had the foresight to cut some corners on production costs. they are the smaller company.

 

[JonathanDeane]

Yeah I would expect to see INTC dip a little more in the next few days then a bump back up when ever the desktop version of conroe hits. after that I expect INTC to hit the 24-25$ mark (I actualy have made a fair bit of money alread I got mine when it was a little over 16$ a share) expect AMD to drop down some more for a few months at least untill they get K8L out or at least some press releases

Edit:On a side note TXXN makes VOIP equipment and there stock slid to something like 16 cents a share yesterday (lost some money there as I got it at 20 cents.....) but anyway they seem ripe for a buy out. Please google buy them LOL hmmm maybe Google would be interested in doing some phone stuff over the net

 

[Gary_Busey]

Hmmm, so wait a couple months after the Conroe release, then buy some AMD stock, then let them release K8 and sell, sell, sell that stock? There could be some money to be made here.

 

[bixplus]

Kind of curious why they made this announcement just two weeks before their official quarterly announcements...and wondering if there is something else behind this. Could it be that they are trying to soften the blow of a possible negative announcement, like a negative profit or a loss of market share?

Also, I don't expect Intel to make any pre-announcements before it's 19th date...but it will be VERY interesting to see if their price-war gamble had an affect on either company.

 

[Gary_Busey]

Just from what I've seen on the internet, it seems that a lot of people are holding off doing any sort of building because they're waiting for the new Conroe's to come out. I would expect a very large jump in Intel's stock sometime soon, if it hasn't already happened.

 

[bixplus]

Agreed. I'm also wondering if the sales(not delivery) of Woodcrest in the last week(or so) of Q2 had any substantial affect on their numbers. Overall, I think INTC is a good stock bet for at least 6-9 months.

 

[Gary_Busey]

Yeah, I know basically nothing about stocks except how to spell it, but simple observations make it seem that way. I'd probably buy Intel stock now and let it grow, and wait for at least a month after the Conroe's come out to buy the AMD stock, and wait till it rises. It'll be interesting to see how companies that are affiliated with Intel and AMD are affected also (i.e. motherboard, cooling manufacturers)

 

[BaronMatrix]

Kind of curious why they made this announcement just two weeks before their official quarterly announcements...and wondering if there is something else behind this. Could it be that they are trying to soften the blow of a possible negative announcement, like a negative profit or a loss of market share?

Also, I don't expect Intel to make any pre-announcements before it's 19th date...but it will be VERY interesting to see if their price-war gamble had an affect on either company.

it is a good idea to give guidance ahead of time for future quarters. I don't think the warning is for the past quarter since every market analysis company has their share growing.

Intel AND AMD have already taken hits for this price war. I posted the 3 month for both companies. Amazingly AMD is still slightly higher than Intel.

INTC: $18.84
AMD: $23.29


Intel has more outstanding shares and a higher market cap though, but with the "wierdness" with 51XX and the "rumors" about Core 2, it could be as bad for Intel even with a superior arch.

 

[RichPLS]

Which company has higher stock ratings, and higher returns on investments?

 

[bixplus]

Unless something drastic happens when Intel announces it's earnings later this month, I think it is the slightly better investment right now. The difference is that it has likely seen it's bottom and has already set the expectation of a bad Q2.

AMD finds itself in a different situation entirely. They are finally in a position of earning marketshare and increased sales and as a result, market analysts have an expectation for AMD that has already been missed for Q2. So I believe AMD's bottom has not been reached yet.

Just some speculation.

 

[BaronMatrix]

Which company has higher stock ratings, and higher returns on investments?

I haven't looked. But with ovens masquerading as server chips, I would say AMD has the higher ROI. I wasn't attacking Intel, just making an observation about the two stocks.

 

[BaronMatrix]

Which company has higher stock ratings, and higher returns on investments?

I haven't looked. But with ovens masquerading as server chips, I would say AMD has the higher ROI. I wasn't attacking Intel, just making an observation about the two stocks.

 

[BaronMatrix]

I also foun dhis little tidbit on AMDZone

SUNNYVALE, Calif. — July 6, 2006 — AMD (NYSE: AMD) today announced that sales for the second quarter ended July 2, 2006 are expected to be approximately $1.215 billion – a 52 percent increase compared to the second quarter of 2005[1] and a nine percent decline compared to the first quarter of 2006. The company’s prior guidance for the second quarter anticipated overall sales to be flat to slightly down seasonally from the first quarter of 2006.

Record AMD Opteron™ processor sales were driven by continued strong demand for single-, dual- and multi-socket configurations for servers and workstations. Sales of entry-level and mainstream mobile and desktop processors were down.

AMD will report its second quarter 2006 results after market close on Thursday, July 20, 2006.

 

[RichPLS]

Why do you continually double/triple post... and at 2 minute intervals??? It seems to be a patter of late...

 

[bixplus]

Kind of curious why they made this announcement just two weeks before their official quarterly announcements...and wondering if there is something else behind this. Could it be that they are trying to soften the blow of a possible negative announcement, like a negative profit or a loss of market share?

Also, I don't expect Intel to make any pre-announcements before it's 19th date...but it will be VERY interesting to see if their price-war gamble had an affect on either company.

it is a good idea to give guidance ahead of time for future quarters. I don't think the warning is for the past quarter since every market analysis company has their share growing.

Intel AND AMD have already taken hits for this price war. I posted the 3 month for both companies. Amazingly AMD is still slightly higher than Intel.

INTC: $18.84
AMD: $23.29


Intel has more outstanding shares and a higher market cap though, but with the "wierdness" with 51XX and the "rumors" about Core 2, it could be as bad for Intel even with a superior arch.

The announcement made yesterday wasn't a guidance for future quarters, but an early glimpse of Q2 numbers.

Here's what others are saying: "We believe that AMD's negative preannouncement marks only the beginning of the difficulties likely to face the company going forward" , "Banc of America analyst Sumit Dhanda lowered his price target to $20 from $34 and maintained a "neutral" rating on AMD stock, reflecting the company's worse-than-expected outlook. " http://www.forbes.com/2006/07/07/amd-intel-0707markets04.html?partner=msn

$34 to $20...that is an enormous degrade.

So, it doesn't matter that they were 52% above Q2 of 2005, because they failed to meet expectations, and that is nearly all that is important to fickle investors. Take Intel for example. It has posted alomst a consistent increase in sales over the last few years, but it's stock is very low...again because of market expectations. This is what I meant when I said that AMD finds itself in a situation it hasn't been in before. The days of posting "good" numbers and seeing a bump in stock price are gone...it's all about expectations from here on.

 

[old_times]

Yeah I would expect to see INTC dip a little more in the next few days then a bump back up when ever the desktop version of conroe hits. after that I expect INTC to hit the 24-25$ mark (I actualy have made a fair bit of money alread I got mine when it was a little over 16$ a share) expect AMD to drop down some more for a few months at least untill they get K8L out or at least some press releases

Edit:On a side note TXXN makes VOIP equipment and there stock slid to something like 16 cents a share yesterday (lost some money there as I got it at 20 cents.....) but anyway they seem ripe for a buy out. Please google buy them LOL hmmm maybe Google would be interested in doing some phone stuff over the net

Do you lie to make yourself feel better?! :lol: When I read you bought it for a little over $16 I said lucky bastard, I bought some when it was $17.9
I was reading another thread on Woodcrest and I see you said $17.12 .


http://forumz.tomshardware.com/hardware/Xeon-Woodcrest-Preys-Opteronftopic-189231-days0-orderasc-25.html

 

[bixplus]

lol...I bought some when it was in the $5+ range...but sold it at $17+. Although I made good money, you can imagine how hard I was kicking myself when it hit $40+.

 

[JonathanDeane]

lol...I bought some when it was in the $5+ range...but sold it at $17+. Although I made good money, you can imagine how hard I was kicking myself when it hit $40+.

At one point it was up to about 80$ but thats been a while

Yeah I would expect to see INTC dip a little more in the next few days then a bump back up when ever the desktop version of conroe hits. after that I expect INTC to hit the 24-25$ mark (I actualy have made a fair bit of money alread I got mine when it was a little over 16$ a share) expect AMD to drop down some more for a few months at least untill they get K8L out or at least some press releases

Edit:On a side note TXXN makes VOIP equipment and there stock slid to something like 16 cents a share yesterday (lost some money there as I got it at 20 cents.....) but anyway they seem ripe for a buy out. Please google buy them LOL hmmm maybe Google would be interested in doing some phone stuff over the net

Do you lie to make yourself feel better?! :lol: When I read you bought it for a little over $16 I said lucky bastard, I bought some when it was $17.9
I was reading another thread on Woodcrest and I see you said $17.12 .


http://forumz.tomshardware.com/hardware/Xeon-Woodcrest-Preys-Opteronftopic-189231-days0-orderasc-25.html

Actualy I bought Intel at 3 different prices the last purchase I made was at about 18.60$ but hey when you buy and sell often its easy to make a mistake (gotta keep that 30 trades a month going to get the discount lol) sounds like some one had AMD stock hehehehe

Edit: TXXN is down to .12 talk about a beating lol I only bought 1,000 shares so its like buying a lotto ticket you might win you might lose

 

[1Tanker]

But with ovens masquerading as server chips, I would say AMD has the higher ROI. I wasn't attacking Intel, just making an observation about the two stocks.

What's ovens masquerading as server chips have to do with the stocks? You were sneakily jabbing Intel, and hoping you wouldn't get called on it. Nice try! :roll:

 

[bixplus]

lol...good catch! Someone's gotta keep him honest.

 

[old_times]

lol...I bought some when it was in the $5+ range...but sold it at $17+. Although I made good money, you can imagine how hard I was kicking myself when it hit $40+.

At one point it was up to about 80$ but thats been a while

Yeah I would expect to see INTC dip a little more in the next few days then a bump back up when ever the desktop version of conroe hits. after that I expect INTC to hit the 24-25$ mark (I actualy have made a fair bit of money alread I got mine when it was a little over 16$ a share) expect AMD to drop down some more for a few months at least untill they get K8L out or at least some press releases

Edit:On a side note TXXN makes VOIP equipment and there stock slid to something like 16 cents a share yesterday (lost some money there as I got it at 20 cents.....) but anyway they seem ripe for a buy out. Please google buy them LOL hmmm maybe Google would be interested in doing some phone stuff over the net

Do you lie to make yourself feel better?! :lol: When I read you bought it for a little over $16 I said lucky bastard, I bought some when it was $17.9
I was reading another thread on Woodcrest and I see you said $17.12 .


http://forumz.tomshardware.com/hardware/Xeon-Woodcrest-Preys-Opteronftopic-189231-days0-orderasc-25.html

Actualy I bought Intel at 3 different prices the last purchase I made was at about 18.60$ but hey when you buy and sell often its easy to make a mistake (gotta keep that 30 trades a month going to get the discount lol) sounds like some one had AMD stock hehehehe

Edit: TXXN is down to .12 talk about a beating lol I only bought 1,000 shares so its like buying a lotto ticket you might win you might lose
I sold my AMD back in May with the Dell buzz, and bought Intel shares some days ago, I can't be happier . You do 30 trades in a month?! Don't taxes choke you? Make that money made! (fed gov singing)