AMD now worth less than it paid for ATi

Skull · Dec 11, 2007, 09:32 AM

Neowin
__________________________

AMD reached its lowest share price for more than four years last week and, as a result, its market value dropped to around US$5 billion that's $400 million less than it paid for ATI in July 2006.

Intel, AMDs major competitor in the CPU business, has been on a roll for the past 18 months and is now worth around US$162 billion, which makes the chip giant more than 32 times the size of AMD in monetary terms.

Even worse for AMD is that its partner-cum-archrival, Nvidia, has a market cap of around $19 billion, which makes it almost four times as valuable as the struggling platform company.

Its fair to say things havent been going well for AMD since the middle of last year, as its two major rivals launched products that remain largely uncontested even today. Neither the Core 2 Extreme QX6700 nor the GeForce 8800 GTX have been truly surpassed in terms of performance yet and its not going to happen until next year.

Dyre Straits · Dec 11, 2007, 09:36 AM

I didn't like the merger announcement when it was made; I haven't liked the developments since; and this only lends more weight to how I felt and feel about it.

Something good needs to happen for ATI's sake....and very, very soon!

Falstaff · Dec 11, 2007, 09:49 AM

fortunes sway back and forth..AMD is not out by a long shot.

ViRuS2k · Dec 11, 2007, 10:19 AM

If amd/ati continue to pump out mediocare cards that are slower than Nvidias flagship cards and after more than a year aswell then something is dead wrong with amd/atis stratagy.

Something is very wrong they need a revolutionary flagship card
for instance in performance terms between 7900 - 8800GTX in terms of power. like what nvidia did.

**temeteus82** · Dec 11, 2007, 10:21 AM

Quote:

Originally Posted by Dyre Straits

I didn't like the merger announcement when it was made; I haven't liked the developments since; and this only lends more weight to how I felt and feel about it.

Something good needs to happen for ATI's sake....and very, very soon!

Feeling is the same in here. I think that AMD newer should bought ATi. It costed them too much money that should have used for CPU development. But anyway that's just my 2 euro cents about this ...

IvanV · Dec 11, 2007, 11:01 AM

Actually, I think that the deal caused much more damage to ATi than it did to AMD. First, ATi had just become a very successful player in the chipset market, being the first company whose chips Intel had used on their motherboards, apart from their own. The AMD deal killed that. Also the graphics division still does relatively well in the notebook market and sells quite a few chips inside current consoles (both Xbox360 and Wii, right?).

The CPU department, on the other hand, is doing much worse. They released the latest chips 6 months behind schedule, at lowered frequencies and with a bug. And the fix for that bug brings 10-20% performance hit. So I think that's the main reason for the stocks drop.

Zelig · Dec 11, 2007, 12:28 PM

Time to buy shares.

**kris23** · Dec 11, 2007, 11:45 PM

man if i invested a few thousand in intel stocks..... thats alot of cash....

Zelig · Dec 11, 2007, 11:58 PM

Quote:

Originally Posted by kris23

man if i invested a few thousand in intel stocks..... thats alot of cash....

I meant AMD shares, they're the cheap ones.

Judas · Dec 12, 2007, 12:14 AM

lol kris.. you don't buy intel stocks when they are high.. you buy the AMD stocks cause there rediculiously low right now.

**kris23** · Dec 12, 2007, 12:27 AM

ehh.... interesting, but why.... how does the stock market work?

Asmoday · Dec 12, 2007, 12:43 AM

Quote:

Originally Posted by kris23

ehh.... interesting, but why.... how does the stock market work?

You buy when the price is low, and sell when its high...not that complicated..

**kris23** · Dec 12, 2007, 12:53 AM

ahh.... i get it.... but what if it dies?

Asmoday · Dec 12, 2007, 01:00 AM

Quote:

Originally Posted by kris23

ahh.... i get it.... but what if it dies?

Then you're screwed...

CDsDontBurn · Dec 12, 2007, 01:51 AM

Quote:

Originally Posted by Zelig

Time to buy shares.

that's what i was thinking!

Quote:

Originally Posted by kris23

ahh.... i get it.... but what if it dies?

Quote:

Originally Posted by Asmoday

Then you're screwed...

Dec 11, 2007, 09:32 AM	#1
Skull Boney Admin Join Date: Nov 2003 Location: somewhere over the rainbow Posts: 659 Rep Power: 59	AMD now worth less than it paid for ATi Neowin __________________________ AMD reached its lowest share price for more than four years last week and, as a result, its market value dropped to around US$5 billion that's $400 million less than it paid for ATI in July 2006. Intel, AMDs major competitor in the CPU business, has been on a roll for the past 18 months and is now worth around US$162 billion, which makes the chip giant more than 32 times the size of AMD in monetary terms. Even worse for AMD is that its partner-cum-archrival, Nvidia, has a market cap of around $19 billion, which makes it almost four times as valuable as the struggling platform company. Its fair to say things havent been going well for AMD since the middle of last year, as its two major rivals launched products that remain largely uncontested even today. Neither the Core 2 Extreme QX6700 nor the GeForce 8800 GTX have been truly surpassed in terms of performance yet and its not going to happen until next year. __________________ How you can help DriverHeaven by using Digg!

Dec 11, 2007, 09:49 AM	#3
Falstaff Old Codger Join Date: Sep 2002 Location: USAFA Posts: 19,048 Rep Power: 207	fortunes sway back and forth..AMD is not out by a long shot. __________________ "Inspiration is always a surprising visitor."

Dec 11, 2007, 11:01 AM	#6
IvanV HH Assassin Guild Member Join Date: Dec 2004 Posts: 5,919 Rep Power: 336 System Specs	Actually, I think that the deal caused much more damage to ATi than it did to AMD. First, ATi had just become a very successful player in the chipset market, being the first company whose chips Intel had used on their motherboards, apart from their own. The AMD deal killed that. Also the graphics division still does relatively well in the notebook market and sells quite a few chips inside current consoles (both Xbox360 and Wii, right?). The CPU department, on the other hand, is doing much worse. They released the latest chips 6 months behind schedule, at lowered frequencies and with a bug. And the fix for that bug brings 10-20% performance hit. So I think that's the main reason for the stocks drop. __________________ If anyone has Portal 2 and hasn't played the co-op and wants to do me a favour, let me know (PM me or whatever).

Dec 11, 2007, 12:28 PM	#7
Zelig HardwareHeaven Extreme Member Join Date: Jun 2003 Location: Canada Posts: 3,187 Rep Power: 71 System Specs	Time to buy shares. __________________ --

Dec 11, 2007, 11:45 PM	#8
kris23 Going Insane..... Join Date: Dec 2006 Location: Los Angeles Posts: 6,019 Rep Power: 131 System Specs	man if i invested a few thousand in intel stocks..... thats alot of cash.... __________________ Hardwareheaven Super-Moderator Building a new computer system and not sure where to start? Click Here! last updated (5/18/11) Rosewill FUTURE case replaces CM 690 II with its greater interior length. Building a PC: Step by Step Guide Written by Kristopher Pedemonte and Nathan Marks-Forder Edited by Allan Campbell Questions or Comments? feel free to post them in the forums!

Dec 11, 2007, 10:19 AM	#4
ViRuS2k HardwareHeaven Extreme Member Join Date: Mar 2003 Location: Uk Posts: 8,334 Rep Power: 0 System Specs	If amd/ati continue to pump out mediocare cards that are slower than Nvidias flagship cards and after more than a year aswell then something is dead wrong with amd/atis stratagy. Something is very wrong they need a revolutionary flagship card for instance in performance terms between 7900 - 8800GTX in terms of power. like what nvidia did.

Dec 12, 2007, 12:27 AM	#11
kris23 Going Insane..... Join Date: Dec 2006 Location: Los Angeles Posts: 6,019 Rep Power: 131 System Specs	ehh.... interesting, but why.... how does the stock market work? __________________ Hardwareheaven Super-Moderator Building a new computer system and not sure where to start? Click Here! last updated (5/18/11) Rosewill FUTURE case replaces CM 690 II with its greater interior length. Building a PC: Step by Step Guide Written by Kristopher Pedemonte and Nathan Marks-Forder Edited by Allan Campbell Questions or Comments? feel free to post them in the forums!

Dec 12, 2007, 12:53 AM	#13
kris23 Going Insane..... Join Date: Dec 2006 Location: Los Angeles Posts: 6,019 Rep Power: 131 System Specs	ahh.... i get it.... but what if it dies? __________________ Hardwareheaven Super-Moderator Building a new computer system and not sure where to start? Click Here! last updated (5/18/11) Rosewill FUTURE case replaces CM 690 II with its greater interior length. Building a PC: Step by Step Guide Written by Kristopher Pedemonte and Nathan Marks-Forder Edited by Allan Campbell Questions or Comments? feel free to post them in the forums!