AMD Faces 32nm Challenge; Cuts Q3 Revenue Forecast
AMD reduced its revenue growth expectations for the third quarter by about 50 percent, stating that it has been affected by "manufacturing issues" at Globalfoundries.
The company said that it expects its revenue to climb by about 4 to 6 percent in the third quarter, which is down from a previous 10 percent sequential growth estimate. There is nothing wrong with demand; rather, it was manufacturing issues at Globalfoundries that impacted the yield of 32 nm Llano processors that are blamed for the revenue downfall.
The company also noted that 45 nm supply of Llano processors was less than expected, due to "complexities related to the use of common tools across both technology nodes." As a result, the shortage put AMD's average selling prices and margin under pressure.
In addition, AMD's 16-core Interlagos (Opteron 6200) server processor began shipping later than planned. Investors reacted almost immediately and sent AMD's stock down more 15 percent to $5.20. AMD's market capitalization dropped to just $3.59 billion.
?... Interlagos hasn't launched yet, but from what I've heard it's taking priority over FX and Opteron 4200 series processors, so we should see them soon.
Maybe you should have stayed logged off after that rant.
We're actually getting B2s, with another stepping due early next year.
And yea, amd. Investors don't like having to wait longer than expected for their processors. Under-promise and over-deliver. (although that might be even worse with your releases)
AMD stock advise from ME:
Buy low, keep the stock.
2. buy amd q4 hardware in february after the holiday rush
Any semi-informed computer salesman knows that Llano is the way to go selling a laptop to anyone wanting to do even a little casual gaming. If they had managed to keep up supply they could have made a killing for the back to school crowd, but it's probably too late for that by now.
Actually Intel's 'supply problem' was in chipsets, and they were not in short supply - just some percentage with SATA 3 ports not working. However, Intel did announce the problem early, and fixed it in what - 5 weeks?
AMD's 'supply problem' has been going on for a year now with LLano, and AMD waits until 2 days before the end of this fiscal quarter to announce (I guess they fear some sort of stockholder lawsuit?). GF cannot supply enough working CPUs for Llano, which in turn pushes back Bulldozer.
This is one of the disadvantages of selling off your fabs and having to rely on a foundry that has other customers to serve, and apparently did not devote enough resources to fixing AMD's order..
Not yet, it will fall further before its done. A 50 percent drop in revenues is a terrible sign. Other companies may permanently eclipse them in the lower end market, especially with Windows 8 running on ARM next year.
Time to buy Shares ?
LOL - exactly what I was thinking. However it would be nice to get some insider info on how well Bulldozer will do - the stock will move up or down accordingly. Where's JF when we need him??
Saw an article on some other site that R7000 got pushed back to next year as well - so GF's and TSMC's 28nm is a bit behind schedule too, I guess.
Wasn't BD supposed to be released this month? Oh well, what's another delay when they've already had 30 of them.