You wouldn’t know it by looking at AMD’s plunging share price, but the company just had a very successful quarter. Its financial report beat analysts’ expectations and revealed an all-important return to profit after a loss-making Q3 in 2012.
Keeping my eye on them,
This is what idiots who know nothing about video games do with a ton of money. They are beyond ignorant. You don't sell right before said company is about to sell millions and millions of chips... Somebody is going to scoop in and pick up those shares and be a very very rich person 1-2 years from now. Shareholders are the dumbest people alive. Born rich...never had to budget.....waste money....
I hope that wasn't in reference to me because I actually purchased a few shares. I've been in and out on them groupon and Rite Aid. Also I'm not rich and budget all the time.
The problem is that AMD isn't making a whole lot of money off of said chips. They even said in the article it was more of a strategic move when combined with Mantle to dominate the low budget gaming market. That's where AMD has stood for a while now, offering lower performing cheaper solutions. This is also why Nvidia backed out of producing for these next-gen consoles, they specifically said what was offered wasn't enough (especially seeing as Nvidia and Intel are typically higher performing, more expensive hardware). Just look at similar PC chips, just a quad core APU alone is around $130, that's more than a quarter of the price of the PS4 (not to mention the RAM is probably the most expensive part of the system). It really seems like AMD may have stretched themselves a bit thin taking on consoles given that their PC GPU and CPU lines are falling quite a ways behind. Other than the 290x, most of the R9 series is just rebranded hardware.
ISeeDeadPixels44, Nvidia was just a sore loser. Being contracted to design a chip and doing leg work on the design is always a profitable business. Manufacturing cost aren't theirs. Those cost belong to the one who ultimately paid for the design. Add the licensing of some of the proprietary work and it will explain their profits this quarter. Given that they haven't suddenly made huge strides in the PC markets with their own chips. The sudden profits have come from something. Add that more and more companies are starting to use custom chips to set themselves apart and few can afford to be Samsung, Microsoft and Apple, custom chips looks like a good move that will take them from being a cash strapped company dropping designs of their own because they lack funding to having a side business that will give them a profit and a chance to use other people's money to further their own R & D. And it will give them time to fully implement HSA reposition themselves as a force in their main business. Also 3-4-5 is right. This is typical of the way the average person gets used. They will dump their stock after a few articles and their 401K will too. Then the insiders will swoop in and make huge profits when the custom and core businesses thrive. I have have said for a year or so AMD is a BUY, BUY, BUY. Intel is the one I'd sell.
Now would be the time to invest. I haven't been watching, but if it's really plunging, I don't see how it has anywhere to go but up. They are going to be churning out chips like mad for the next 8 years. Probably because Nvidia is running it's mouth. But, it doesn't matter what Nvidia says. They aren't the one who will be spearheading console production for the next 8 years. They aren't the ones who will set the standard for gaming. Regardless of what they say.
Buy now. Sell later. /make_money
Just ordered all AMD rebuild components for one of my PC's. Disregard trade pros and financial game people spreading AMD rhetoric on this one. Sony and MS aren't changing anything and that opens a pathway for future PC.
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