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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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.Reply
and...Please thumb me down AMD fanboys.
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.Reply
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.Reply
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.
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.Reply
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.
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.Reply
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.Reply
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.Reply
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.
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.Reply
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.