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Print 61 comment(s) - last by monkeyman1140.. on Jul 22 at 3:28 PM

Upgrade push could be the salvation of long struggling AMD

In business, just like in real life, companies can be a victim of expectations.   Fortunately for chipmaker Intel it handily beat the estimates of Wall Street's top researchers, reporting its best quarter ever.  On Tuesday night after the closing bell Intel reported a Q2 2010 revenue of $10.8B USD, handily topping the $10.25B USD predicted by analysts.

Chipmaker AMD, the David to Intel's Goliath, had some good news of its own on Thursday.  The company posted a net loss for Q2 2010 of only $43M USD, $110M USD less than the loss widely predicted by Wall Street.  AMD reported revenue of $1.65B USD, where analysts had predicted it to pull in only $1.54B USD.  It also posted a promising Non-GAAP earnings were $83M USD.

AMD has benefited from its success in the GPU segment, and, like Intel, by a strong upgrade cycle demand for CPUs.  AMD credits stronger demand for notebook CPUs and GPUs as a major source of its turnaround.  With its latest results, AMD inches closer to finally crawling out of the money pit it has long been languishing in.  In fact, if the current results are any indication, AMD may return to profitability within a quarter or two.  

Ultimately, AMD and Intel are being buoyed up by a strong upgrade push both in the desktop and notebook sector.  A major part of this push is thanks to Windows 7, Microsoft's latest consumer operating system that is earning unanimous praise from reviewers and customers alike.

While some worry about the upgrade craze dying down, it seems likely to continue strong for some time while so many customers still have Windows XP.  Additionally, businesses will likely slowly jump onboard the upgrade train as they look to transition to Windows 7.  If Microsoft can replicate Windows 7's success with Windows 8, the outlook for both Intel and AMD may continue to be just as rosy.



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RE: Yehaw.
By Da W on 7/16/2010 10:13:09 AM , Rating: 5
Wait 6 months and you'll have a war where AMD Fusion has by far the best GPU on chip and Intel Sandy Bridge will have the best CPU. This will be interesting to see how it develops. AT least for mainstreams desktops, laptops and even may be tablets, AMD might have an edge.

AMD is great stock to buy at this morning's price.


RE: Yehaw.
By Mitch101 on 7/16/2010 11:38:34 AM , Rating: 5
AMD
Next Gen video card chip comes in October with higher end late this year. - This is supposed to be a redesign from the ground up so possible major speed increase not just linear.
Quad 45 watt cpu's I believe in September or sooner? Recall reading that recently.
Fusion in September/October. GPU/CPU on a chip.
Bulldozer Q1 2011 but benchmarks might come earlier.

INTEL
Sandy Bridge coming in September - GPU/CPU on a chip. Supposedly on chip graphics are significantly faster than anything Intel has done before. Possible leaked benchmarks show that at 2.5ghz it can whip a 3.3ghz i7 chip.

I have no personal faith in GPU with the CPU but the pluses could be.
1-Video encoding greatly improved.
2-Perfect home theater chips.
3-Possibly be leveraged for Physics and it finally becomes mainstream in games.

NVIDIA - Would hate to be them.
Fermi 2 maybe? - Still too costly?
No license to make mobo chips for i7 line.
Hoping they get some design wins with mobile chips in portable devices but that's not looking so good either.


RE: Yehaw.
By pvsat581 on 7/16/2010 1:09:15 PM , Rating: 5
I am an Intel employee...its great to know that AMD is working hard and they are slowly getting out of their problems... it makes us at Intel work harder to be a better competitor....and all I can say for now is....wait for Sandy bridge :)!!


RE: Yehaw.
By Da W on 7/16/2010 2:35:15 PM , Rating: 5
As a geek, i sure hope you make something good with Sandy Bridge. But as a stock analyst, all i've seen from you is this: wait and see, where AMD has shown us a working chip at computex already.

So my reply to Intel: i'll believe it when i see it. You did tell us to wait for prescott a few years ago...

(btw i own both stocks, so i don't have a favorite, but AMD being at the bottom has the most to gain)


RE: Yehaw.
By namechamps on 7/20/2010 10:01:19 AM , Rating: 2
quote:
But as a stock analyst, all i've seen from you is this: wait and see


Really. Intel has had 2 of the best qtrs in a row, back to back. Beats on revenue, margins, and earnings.

As a tech enthusiast Intel has been lackluster lately but latest and greatest doesn't always translate into $$$$. Intel has been doing an amazing job protecting margins even in the face of low cost competition from AMD and in a poor economic cycle.

Last qtr was according to their CEO the best qtr .... in the history of the company. Not really what most analyst would call "wait and see". I mean what are you waiting for a chip that turns lead into gold, flash ram that cures cancer?


RE: Yehaw.
By NubWobble on 7/17/10, Rating: -1
RE: Yehaw.
By monkeyman1140 on 7/22/2010 3:28:57 PM , Rating: 2
No thanks, I can't afford your chips Now, much less in the fall.


RE: Yehaw.
By Ammohunt on 7/16/2010 1:20:32 PM , Rating: 5
quote:
Sandy Bridge coming in September - GPU/CPU on a chip. Supposedly on chip graphics are significantly faster than anything Intel has done before. Possible leaked benchmarks show that at 2.5ghz it can whip a 3.3ghz i7 chip.


So that means i will be able to play 3D games from 5 years ago at 30FPS on Sandy Bridge! I can't wait to dust of my copy of Cabela's Big Game hunter 2006!


RE: Yehaw.
By StevoLincolnite on 7/16/2010 12:31:26 PM , Rating: 2
quote:
Wait 6 months and you'll have a war where AMD Fusion has by far the best GPU on chip and Intel Sandy Bridge will have the best CPU. This will be interesting to see how it develops. AT least for mainstreams desktops, laptops and even may be tablets, AMD might have an edge. AMD is great stock to buy at this morning's price.


Unfortunately waiting 6 months means 6 months I have to keep living with this 2.1ghz Core 2 Duo, 2gb of ram, and an Intel x3100 laptop.

My advice has always been: Buy the best you can afford at the time, as there is always something better around the corner.

PLUS! With AMD's history of making newer processors work on older motherboards... (Socket AM3 processors working in Socket AM2+ and AM2 boards etc')
Well here's hoping there is an option for drop-in upgrades.


RE: Yehaw.
By lagitup on 7/16/2010 6:17:20 PM , Rating: 2
My understanding was that bulldozer, as a ground-up redesign, wouldn't be cross/backwards compatible?


RE: Yehaw.
By phazers on 7/16/2010 2:56:52 PM , Rating: 2
Actually according to today's financial news, AMD stock has been downgraded due to their delaying Llano 32nm until "1st half" of 2011, from Q1 2011. So my guess is either design problems or GF is having trouble with 1st-gen HKMG on their 32nm node.

If AMD's process lag goes up to 18 months or so, I wonder if Intel will delay their tick-tock to 22nm..


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