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AMD Stock Sheds Another 10% on Weak PC Outlook

By - Source: Google Finance | B 34 comments

Analyst predictions of a declining PC market for this year are showing their impact on stocks.

AMD was hardest hit with a decline of more than 13 percent on Friday, sending the stock down 42 cents to $2.78. Adding to the recent slide in value, AMD is now listed with a market capitalization of just $1.96 billion. 

AMD also warned investors that it expects its Q3 revenue to show a 10 percent sequential decline, which is worse than the previously forecast 1 percent, indicating AMD's substantial exposure to the current deteriorating economic climate for the PC industry.

According to AMD, "the lower than anticipated preliminary revenue results are primarily due to weaker than expected demand across all product lines caused by the challenging macroeconomic environment." Margins were impacted by lower than expected average processor selling prices, the company stated.

Intel has also been hit. The company did not show a massive hit, but Intel's stock continued its downward spiral, which began in April of this year at a peak of $28.38. Intel shares are down more than 20 percent since then and currently trade for $21.45, giving Intel a market cap of about $107 billion. Other indicators in the PC market such as Microsoft, have also suffered recent stock declines, despite the upcoming launch of Windows 8.

AMD said it will discuss its Q3 result on October 18 after stock market close.

 

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  • 20 Hide
    tomfreak , October 13, 2012 12:18 AM
    I am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.

    and...Please thumb me down AMD fanboys.
  • 15 Hide
    willard , October 13, 2012 12:35 AM
    Right about now might be a good time to buy AMD stock. Wait for the Q3 earnings report, let AMD take another 10% hit and snap up the shares at a bargain. AMD is looking very good in the ultrathin market, offering lower prices and superior GPU performance over Intel chips.

    Quote:
    Margins were impacted by lower than expected average processor selling prices, the company stated.

    Yeah, that will happen when your top of the line processor competes (poorly) with your rival's 18 month old mainstream chip. Fix your IPC regression and maybe you can charge $200+ for your chips again. Stop throwing more cores at the problem and give me decent single threaded performance again.
Other Comments
  • 20 Hide
    tomfreak , October 13, 2012 12:18 AM
    I am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.

    and...Please thumb me down AMD fanboys.
  • 3 Hide
    southernshark , October 13, 2012 12:22 AM
    Unfortunately it is very common outside of the consumer nations for prices to be considerably higher. I live in Guatemala and everything is about 50 percent more than the Continental USA.
  • 0 Hide
    ekho , October 13, 2012 12:25 AM
    http://allthingsd.com/20121012/exclusive-amd-to-cut-up-to-30-percent-of-workforce/
    :( 
  • 15 Hide
    willard , October 13, 2012 12:35 AM
    Right about now might be a good time to buy AMD stock. Wait for the Q3 earnings report, let AMD take another 10% hit and snap up the shares at a bargain. AMD is looking very good in the ultrathin market, offering lower prices and superior GPU performance over Intel chips.

    Quote:
    Margins were impacted by lower than expected average processor selling prices, the company stated.

    Yeah, that will happen when your top of the line processor competes (poorly) with your rival's 18 month old mainstream chip. Fix your IPC regression and maybe you can charge $200+ for your chips again. Stop throwing more cores at the problem and give me decent single threaded performance again.
  • 2 Hide
    A Bad Day , October 13, 2012 12:36 AM
    TomfreakI am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.and...Please thumb me down AMD fanboys.


    Bonus if the country with the rip-off pricing has lower income average, even for the middle class. In China, if you convert their money to US dollars, many of the electronics cost around the same. But take in account of China's middle class's lower avg income, and those stuff becomes more expensive.
  • 4 Hide
    tomfreak , October 13, 2012 12:50 AM
    A Bad DayBonus if the country with the rip-off pricing has lower income average, even for the middle class. In China, if you convert their money to US dollars, many of the electronics cost around the same. But take in account of China's middle class's lower avg income, and those stuff becomes more expensive.
    This does not happen for Intel CPU in my country, which also Assembled here. This is why our 2600K-3700K cost as much as it did in USA. IMO, This is AMD's own problems, to make even more ridiculous, most AMD CPU are actually assembled here.(check ur AMD CPU IHS label). I am sure my country is not the only country have this kind of AMD rip off problem. AMD have their way they deserve it.
  • -8 Hide
    reprotected , October 13, 2012 1:31 AM
    TomfreakPlease thumb me down AMD fanboys.

    I think this part of the community only thumbs down if you mention anything good about Apple or blatantly say anything bad about any other tech company without any justification.
  • 0 Hide
    zolton33 , October 13, 2012 1:36 AM
    It is a shame to see AMD hit like this but what did they expect? They quit competing in the high end desktop cpu market and as such their newer chips are less powerful then their competitors discounted older chips and are a lot more expensive. Of course no one is gonna pay more for some thing that gives less.

    And it does not surprise me about intel. With most companies when they ship a new product line what do they normally do? They discount the old line to move them out. Has intel done this with the sandy bridge and ivy bridge line? Nope they are both priced almost the same across the board. So why do they do this? Well who is going to compete with them? Amd has backed off so they can price it at any point they wish.

    So your choices as a desktop cpu? An over priced under performing cpu? Or an over priced higher performing cpu? It really hits the consumer where it hurts the most in either situation. And with intel still pushing out newer more powerful cpus and amd pushing out less powerful and over priced cpus the gap is only going to get bigger with things getting worse as the two companies get further and further apart in their cpu performance differences. I'm afraid things are only going to get worse from here on end.
  • 0 Hide
    nforce4max , October 13, 2012 1:36 AM
    I am surprised that their stock is still holding out at all but when the bottom falls out of the stock market it will be worthless along with the stocks of other companies. Just as matter of time but a lot of people will lose their jobs and investments.
  • -5 Hide
    jaquith , October 13, 2012 1:54 AM
    Quote:
    AMD is now listed with a market capitalization of just $1.96 billion.


    Hmm...hostile takeover anyone??!! Maybe Intel?? or Intel & Nvidia?? If so then get use to vanilla.
  • 0 Hide
    greghome , October 13, 2012 2:27 AM
    TomfreakI am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.and...Please thumb me down AMD fanboys.


    Bro, that happens because AMD CPUs are not as fast moving as Intel CPUs.
    I know cause I am from there as well :p 

    EDIT: in terms of sales, not performance, they don't sell as fast
  • -1 Hide
    ojas , October 13, 2012 3:26 AM
    Quote:
    Analyst predictions of a declining PC market for this year are showing their impact on stocks.

    Just goes to show how crappy analysts are, dictating for their own gain the turn of the market.

    also, even Apple's stocks have fallen close to 10% iirc. So demand is just weak in general.

    TomfreakI am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.and...Please thumb me down AMD fanboys.

    Haha do you know what happens in india? both amd and nvidia rip us off! the 680 and 7970 cost as much as last generations's 590 and 6990 do! lol.
  • 2 Hide
    devBunny , October 13, 2012 4:09 AM
    zolton33It is a shame to see AMD hit like this but what did they expect? They quit competing in the high end desktop cpu market and as such their newer chips are less powerful then their competitors discounted older chips and are a lot more expensive.


    That's the wrong way round. The new architecture didn't meet the challenge and that's when they announced that they were quitting the performance race.
  • 0 Hide
    zipop , October 13, 2012 5:17 AM
    I am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.

    and...Please thumb me down AMD fanboys.

    Hey Stupid! I am from malaysia too. Buy directly with neweggs. Cheaper than bloody greed low yat BB.
  • 0 Hide
    greghome , October 13, 2012 5:30 AM
    zipopHey Stupid! I am from malaysia too. Buy directly with neweggs. Cheaper than bloody greed low yat BB.


    Dude, lowyat is quite cheap already, the price they're charging for the CPUs AMD or Intel are already as cheap as it can get as the distributors themselves only sell them about RM5 cheaper at best.
    Stores at lowyat mainly rely on supplier rebates to earn cash from CPUs and RAMs
  • 0 Hide
    tomfreak , October 13, 2012 6:06 AM
    zipopI am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.and...Please thumb me down AMD fanboys.Hey Stupid! I am from malaysia too. Buy directly with neweggs. Cheaper than bloody greed low yat BB.
    dude, the public dont buy stuff on newegg here, they buy directly from stores.
  • 0 Hide
    division_9 , October 13, 2012 6:08 AM
    TomfreakI am still getting rip off in my region = Malaysia, yes a place where most CPUs are assembled. A FX8150 cost as much as a 2600K/3770K, thats pretty much no reason to buy AMD FX CPU here, AMD why dont do some homework put a better pricing/performance across the world. If u dont, then I think u deserve this stock falling.and...Please thumb me down AMD fanboys.


    Yeah I know it's AMD's fault that your local shop is selling stuff at ripoff prices!

    All retards please thumb me down.
  • 0 Hide
    zipop , October 13, 2012 6:33 AM
    nope. The trader here just too greed. to tomfreak ; then advised public buy online. Cheaper and save transportation cost. U know how 'cheap' parking in low yat? every each hardware i am comparing lowyat and neweggs is abaout RM100 diff per each such like processor, gpu, ssd, and many more. My dream PC is about rm3000 in lowyat but in neweggs just rm1600++. Still you blaming on AMD? do you get the pictures?

    Those AMD and Intel 'made in Malaysia' but selling higher than neweggs? do you know why neweggs website malaysia suddenly 'in maintenance'? Use your brain dude. I rather buy online. I can wait 2 weeks delivery.
  • 0 Hide
    zipop , October 13, 2012 6:35 AM
    greghomeDude, lowyat is quite cheap already, the price they're charging for the CPUs AMD or Intel are already as cheap as it can get as the distributors themselves only sell them about RM5 cheaper at best. Stores at lowyat mainly rely on supplier rebates to earn cash from CPUs and RAMs


    nope. You are huge wrong
  • -1 Hide
    zipop , October 13, 2012 6:41 AM
    i became tom's visitor since 2004, which i referring they price/performance/review to build up my customers pc. That time, no bangla in lowyat yet.

    much people now buy on-line, so low yat guys, please alert. Why your sales down (directly from low yat)
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