Sorry about the post if this is in the wrong forum. I have lost all hope completely for AMD. I love AMD; they are (or were rather) a great company. My X2 4200+ socket 939 is ticking away beautifully. Even though AMD has been getting better about their products (heck, they couldn't get much worse) their stock is not falling; it's plain crashing. Check out this link:

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

What do you guys think is gonna happen with this? And someone who understands stocks, what would this make as the total value of the shares in the market? And please, let's not start a flame thread; I am posting this so people can see what is Happening with their stock if they haven't been keeping up with it. Thanks.

~Monster

let's hope AMD doesn't cease exist.it would be terrible with intel having the monopoly in the cpu business - no more new innovations,no more competition and exorbitant prices - bad for us consumers.

Based on stock price and # of outstanding shares, AMD market cap is about $4.26 billion.

Compare that to Intel's market cap of $151.5 billion.

Well, as they are in a very tough position at the moment. The German gov even pumped like 350 million Euro into the company so it wouldn' go into bankruptcy.

All their products have been delayed because of technical flaws, this will ensure intel gets a greater market share. Hence amd will sell less and make not the ammount of profit they predicted.

from http://biz.yahoo.com/ap/071217/amd_mover.html?.v=2
"AMD, which has been hit by a series of delays in key products, acknowledged its shortcomings at the analyst meeting and said it aims to reach profitability in the second half of 2008 after losses in every quarter of 2007."

Anyway, stocks aren't doing that great last couple of weeks, everything is going down now.

Best thing to happen is AMD getting a new management which will take some drastic decisions so they can turn the tide

Disclaimer: I know little about the financial world.

Now that that's out of the way, it is certain that AMD is... not in great shape. But setting AMD aside, I'd like to make a little general statement. Market capitalization is not the most "real" figure in the world. Compare the market caps of these companies for fun! Apple (AAPL), Intel (INTC), Ford Motor (F), General Motors (GM), and Google (GOOG). Apple's worth more than Intel! Google trounces both Intel and Apple! Google is more than six times the value of GM and Ford combined! See how wacky the stock market gets? That aside, I suppose that within reason, low share prices for shares that were once high does suggest a problem.

My only point is that you shouldn't use the value of the shares or the market capitalization of a company as the sole indicator of health. Sometimes you'll be right, sometimes you'll be wrong, and sometimes strange things happen. The stock market is more volatile than RAM prices.

Since it seems the trendy thing to do these days is to bash AMD and to bash AMD supporters, I'd like to quickly save myself and say that I'm typing this on a computer with an Intel processor.

Oh, and I realize bringing this up might not be the brightest idea, but regarding Hector's recent raise? Par for the course. Look up any CEO in recent history. Look up their salaries. Look up when they're "fired." The company usually makes a press release saying that the CEO has left "to pursue other interests" or something to that effect. Also, the CEO gets a severance package several times greater than what most of us will ever make in our lifetimes. Par for the course.

Actually no.

From AMD Closes Below $8: Wall Street not Happy with Delays and posted by Technology Coordinator:

Jaguar,

The Dow isn't really the best indication of the stock market in general. AMD is indeed getting hit, but the market is in major turmoil right now. You need to look at what the market has been doing since August to really see what has been going on.

That aside, AMD has been hit harder, but I don't think it's just because of delays, I think alot of people are scared of stock dilution, and debt to equity ratio. Then tack on the errata that AMD ordered to stop ship on Phenoms (which came out after that thread was started) and AMD stock is sliding.

So much more stuff was going on with AMD other than the delays, that I think it was really a combination of many things, and not just one thing.

The following is all three major indexes (Dow Jones, Nasdaq, S&P 500) compared to AMD over a span of 6 month. Everything seems fine until mid-November.

This guys got it spot on. AMD is in a shaky position, has alot of debt and has been recently hit with delays in releasing its new mainstay product. Apply these criteria to any firm in just about any sector and in these uncertain times the stock price will fall and fall and fall. Until q4 results are published it could very likely keep sliding. Only when the fixed Phenoms are out will the stock have any chance of recovering.

Thats when investors lost their nerve over anything that looks shaky. The world banking system in general for instance.

Based on a total of 623 companies amongst the three indexes AMD is performing below average. Of course if all 623 companies are experiencing the same problems AMD is experiencing then they should all take a nose dive. Yes, the problems in this situation is specific to AMD, but that's the point. The problems with AMD is not indicative of the entire market which is why it is under performing the indexes. Investor are always skiddish, it's not a symptom only for AMD investors. Uncertainly creates fear of losing (more) money. Do you think the average investor loves uncertainty?

If AMD was not in a "shaky position" then yeah, the stock price would not have plummeted, but the reality is that AMD is in a "shaky position". If it were possible for companies never to suffer from a "shaky position" then that would be pangea for all investors (in the land of fantasy).

Below is how AMD compares to the Russell 2000 which represent 2,000 small cap companies:



How about the NYSE composite of 2,000 large cap companies:



That's a total of 4,623 companies amongst the 5 indices that on average outperforms AMD. Note: Not necessarily 4,623 unique companies since it is possible the same companies can be included in multiple indices.

Here's London's FTSE 100 index vs. AMD for an international flavor:



I would provide a comparison of the Russell MidCap Index to AMD, but that's only up to 5 days of history.

I think maybe you misunderstood me. My reason for saying that the DJI is no longer really the BEST market indicator had nothing to do with the AMD stock slide, that was just a piece of friendly advice.

As far as the AMD stock slide comments. My point is that it is NOT only the CPU stop ship that caused the problem (which didn't hit the press until DECEMBER), it was MANY things that caused the problems. Just look at all the negative news that has come out about AMD in the last month, it's so much more than just the CPU "delay" as it was first thought.

Furthermore, if AMD is still around in 6 or 8 months time, they will be in a world of hurt when Intel release Nehalem.
According to early reports from intel, nehalem will have a performance gain over C2D larger than C2D was over the old netburst architecture.

AMD is factually bankrupt.

How do you figure Ycon? Just curious what calculation you did to figure that out.

AMD has been a lot lower. They closed at $3.51 on october 4th 2002. Theyre still in the game for now.

So true, if you removed the value of the ATI division, AMD would be in the hole. That is, if you removed what AMD paid for ATI. At this point, in my opinion, only a miracle will save AMD, unless it gets so cheap that someone else buys it.

Hey, Warren Buffett, want a computer chip company cheap? You can afford it out of petty cash.

One thing to note on the bad side. As some have speculated, without AMD, Intel would either slow production and/or raise prices because of lack of competition. Seems that Intel has done that, as it has put a delay on a few of its chips citing that there is no reason to sell them due to a lack of pressure from AMD, according to an article in Digitimes. We may be starting a journey back to high prices. Hope not.

Sailer,

What exact calculations do you do to figure out if AMD is basically bankrupt?

The reason I ask is because I thought that you have to take into account all assets, and then compare it to debt. I am not very keen on accounting, so feel free to enlighten me.

I think AMD can make it, they are putting out decent graphics cards, and do well for a value CPU segment. May be that someone will buy them and start releasing their stuff as entry level until it could be built back up.