AMD loosing ground?

**ZECH** · 01-16-2007, 07:42 AM

http://www.marketwatch.com/News/Stor...ktw&dist=nwhpm

AMD needs to prove it can withstand heat from Intel

PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Matt Andrejczak, MarketWatch
Last Update: 5:12 PM ET Jan 12, 2007

SAN FRANCISCO (MarketWatch) - Once again, Advanced Micro Devices Inc. will have to prove it can withstand the heat being applied by its larger rival, Intel Corp.
Investors, who pushed AMD shares (AMD : Advanced Micro Devices, Inc
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9:22am 01/16/2007

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AMD18.26, -1.92, -9.5%) down more than 9% Friday after the company issued a profit warning, have grown skeptical that it can.
The stock is now down more than 55% since March, when Intel first signaled it was being hurt by AMD in the market for server chips. Ironic as it sounds, investors sold off AMD shares on that news because many guessed that Intel would cut prices to win back share in a lucrative market.
Those fears of a price war turned out to be well-founded, and AMD blamed its reduced forecast on lower sales prices for microprocessors used in PCs and data-server networks.
Sunnyvale Calif.-based AMD, the world's No. 2 maker of PC and corporate-server chips behind Intel, has long faced intense pressure from its Silicon Valley foe, which has more engineers and a much-larger marketing budget.
Now, in the minds of many industry watchers, Santa Clara, Calif.-based Intel has caught up to AMD's technology with its latest line of chips; that could spell continued problems for AMD.
"AMD has to find a way to be better than Intel or it's going to be a blood bath," said Fred Hickey, who runs the High Tech Strategist newsletter and holds no positions in AMD or Intel. "At the moment, for many of its products, AMD doesn't have a big lead anymore."
In some market niches, in fact, Intel may have sprinted ahead. Intel released a new server chip in November, based on quad core technology, which crams four processing engines onto a single piece of silicon.
AMD isn't expected to release its competing offering until this summer. That product, code-named Barcelona, could provide the lift the company seeks.
"We have no doubt that AMD's next-generation of products will be significantly more competitive," wrote Stifel Nicolaus analyst Cody Acree, who reiterated his hold rating on AMD. Yet, he said the new slate of products won't have much financial impact until 2008.
New products and more-advanced chip manufacturing should help AMD. Jeffries & Co. analyst John Lau said AMD's gross profit margin should improve later this year as its stamps out more processors on 12-inch wafers, which helps improve speed and performance.
Not long ago, AMD had been on a roll. Industry experts hailed AMD's Opteron line of server chips as superior to Intel's competing product. AMD also won new business with several PC and server makers, including Dell Inc., which previously had been an exclusive Intel customer.
Those moves helped boost AMD's share of the microprocessor market in 2006 and the company's stock price, which hit a five-year high early last year.
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9:27am 01/16/2007

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INTC22.13, +0.21, +1.0%) pushed back last year, releasing its Core 2 Duo chips based on a new micro-architecture that Intel says offers better performance. It also cut prices on its PC chips, hurting AMD's gross profit margins.
This has put AMD in a precarious - and familiar - position.
"Intel has always bombed them in price. The only time it didn't work is when AMD had a big lead" in technology, Hickey added.
A bloody price war
ThinkEquity Partners analyst Eric Ross said major PC makers are "disillusioned" with AMD's technology roadmap and are likely to give longer-term design wins back to Intel.
Ross added that he thinks the price war between Intel and AMD will persist in the first half of 2007. He downgraded AMD to sell from buy Jan. 3, setting a $15 price target. He holds an accumulate rating on Intel with a $23 price target.
While AMD altered its roadmap with its $5.4 billion purchase last fall of ATI Technologies Inc., a major maker of graphics chips used in PCs and other consumer electronics, it is still being hurt by the Intel counter-attack.

**DOMS** · 01-16-2007, 07:50 AM

AMD's fiscal targets have been much more aggressive than Intel's for a long time. This just seems to be a classic over-reaching that's a part of every company that's growing quickly.

So it has less to do with Intel than it does with a publically traded company trying to please its shareholders.

This need to keep profits driving up has caused some companies to "cook the books." Just look at Lucent as an example.

**KelJu** · 01-16-2007, 08:04 AM

Originally Posted by DOMS

AMD's fiscal targets have been much more aggressive than Intel's for a long time. This just seems to be a classic over-reaching that's a part of every company that's growing quickly.

So it has less to do with Intel than it does with a publically traded company trying to please its shareholders.

This need to keep profits driving up has caused some companies to "cook the books." Just look at Lucent as an example.

I wish I knew more about quarterly reports and stocks. What I do know is that my AMD chips have out performed outperformed Intel's competing chip for the last 5 years. I am only talking price here. I could always get a better AMD system than Intel. The Conroe has changed things up a little. I am not a Ford or Chevy retard. I got a duel core AMD in my desktop and a duelcore Intel in my laptop.

As long as AMD continues to release quality products, I will continue to buy them.

**ZECH** · 01-16-2007, 08:09 AM

Originally Posted by KelJu

As long as AMD continues to release quality products, I will continue to buy them.

I think that (quality and price) is what really matters to most people. Why pay a higher price for the same performance?

**BigDyl** · 01-16-2007, 08:13 AM

I'm an "AMD" guy, but intel is winning the race right now.

**fUnc17** · 01-16-2007, 09:26 AM

Originally Posted by BigDyl

I'm an "AMD" guy, but intel is winning the race right now.

That must of taken alot

**viet_jon** · 01-16-2007, 09:57 AM

Originally Posted by dg806

I think that (quality and price) is what really matters to most people. Why pay a higher price for the same performance?

true, but...

i don't think consumers do their homework before they buy a computer. Most people automatically equate a known brand and a higher price equals better quality and speed.

**DOMS** · 01-16-2007, 10:01 AM

Just how bad AMD's slip really is depends on how Intel reports; Which will be sometime tonight. If Intel slips too, then it's not that big a deal.

**DOMS** · 01-16-2007, 10:03 AM

Originally Posted by viet_jon

true, but...

i don't think consumers do their homework before they buy a computer. Most people automatically equate a known brand and a higher price equals better quality and speed.

Consumers may not do their homework, but the techs do, and the consumers listen to the techs.

The biggest thing that Intel has going for it is Dell. To my knowledge, Dell only puts Intel processors in their servers and desktops (though you can get them in the laptops).

**BigDyl** · 01-16-2007, 11:03 AM

Originally Posted by fUnc17

That must of taken alot

I'll take alot from you son, after I put you in a flying gogoplata.

**Brachiisaurus** · 01-16-2007, 11:17 AM

From what I've read, AMD will bring out a 65nm chip, just like Intels.
I use AMD myself in my current gaming pc.
But I'd be willing to switch to the new core2duo if the new AMD's aren't more reasonably priced, and of course better performance.

**ZECH** · 01-16-2007, 12:18 PM

Originally Posted by DOMS

The biggest thing that Intel has going for it is Dell. To my knowledge, Dell only puts Intel processors in their servers and desktops (though you can get them in the laptops).

No, they started using AMD's this past year in a big contract I think.

**ZECH** · 01-16-2007, 12:19 PM

AMD also won new business with several PC and server makers, including Dell Inc., which previously had been an exclusive Intel customer.

I CAN TELL YOU READ THE ARTICLE!

**fUnc17** · 01-16-2007, 12:19 PM

Originally Posted by BigDyl

I'll take alot from you son, after I put you in a flying gogoplata.

**Little Wing** · 01-16-2007, 04:14 PM

i was advised when i get a new comp to buy intel, n considering who advised me i will.

**maniclion** · 01-16-2007, 04:32 PM

I love my AMD powered laptop, best computer I have ever had...

**KelJu** · 01-16-2007, 05:24 PM

My AMD desktop is the best I have ever had.

**Jodi** · 01-16-2007, 06:57 PM

Originally Posted by DOMS

Just how bad AMD's slip really is depends on how Intel reports; Which will be sometime tonight. If Intel slips too, then it's not that big a deal.

We didn't slip

**Mudge** · 01-16-2007, 07:00 PM

Originally Posted by Little Wing

i was advised when i get a new comp to buy intel, n considering who advised me i will.

I have worked with and been around computers for plenty of years, and it really doesn't f'ing matter. I like to save money so I buy AMD when I buy something, I haven't owned an Intel desktop since my P200MMX. I know some old schoolers who still look back to the late 80s and very early 90s and cite performance back then as to why they still buy Intel

but hey, times change. If you want to go real budget then Cyrix/VIA is the way to go super cheap and on the slow side of things.

There is nothing wrong with buying either Intel or AMD. Reasons to vote one or the other are usually the same as going Republical or Democrat, tradition and bias.

Why do the Irish and English still hate each other? Well, they've been doing it for a long ass time. Thats why!

55% slip from AMD, that might be an excellent rebounder. MIGHT, and how long, who knows.

**Jodi** · 01-16-2007, 07:04 PM

Originally Posted by Mudge

I have worked with and been around computers for plenty of years, and it really doesn't f'ing matter. I like to save money so I buy AMD when I buy something, I haven't owned an Intel desktop since my P200MMX. I know some old schoolers who still look back to the late 80s and very early 90s and cite performance back then as to why they still buy Intel

but hey, times change. If you want to go real budget then Cyrix/VIA is the way to go super cheap and on the slow side of things.

There is nothing wrong with buying either Intel or AMD. Reasons to vote one or the other are usually the same as going Republical or Democrat, tradition and bias.

Why do the Irish and English still hate each other? Well, they've been doing it for a long ass time. Thats why!

55% slip from AMD, that might be an excellent rebounder. MIGHT, and how long, who knows.

Well, I'm a bit biased. For obvious reasons, I only own Intel. But, I've always owned only Intel
Earnings Report: http://www.intel.com/intel/finance/earnings/2006.htm

**The Monkey Man** · 01-16-2007, 07:06 PM

Originally Posted by Jodi

Well, I'm a bit biased. For obvious reasons, I only own Intel. But, I've always owned only Intel
Earnings Report: http://www.intel.com/intel/finance/earnings/2006.htm

Wow, I didn't think you would post in this thread -

**KelJu** · 01-16-2007, 07:33 PM

Originally Posted by The Monkey Man

Wow, I didn't think you would post in this thread -

I knew Jodi would start picking on us sooner or later.

**DOMS** · 01-16-2007, 07:42 PM

Originally Posted by Jodi

We didn't slip

Intel did beat estimates, but their profits dipped 39%.

**Jodi** · 01-16-2007, 08:13 PM

It's been a very difficult year. Between the losses on 4th qtr 2005 (which set the ball rolling), to the 10,000 layoffs, restructuring and new products. Given all the speedbumps, we have done well and beating estimates was a good leap for us.

I'm not an analyst so I don't understand all the details. I'm just an Intel employee.

**CowPimp** · 01-16-2007, 08:44 PM

I hope they remain competitive. Competition is always good for the market. I could care less who's faster.

I think fanboys are fucking stupid. I have owned both AMD and Intel systems. Which gives me more bang for the buck is the one I go with. Both companies have proven that they can produce reliable platforms. My current system is AMD based because at the time I purchased it AMD offered better gaming performance per dollar, but I have no ties to AMD.

**Mudge** · 01-16-2007, 10:42 PM

Agreed, competition is good for the consumer.

**Gordo** · 01-17-2007, 05:20 AM

I though I was going to stick with AMD (my second box is an 2800XP) but I'm majorily impressed with the conroe E6600 I've put together. Fast and cool. Mad props to INTEL for the core2duo(mind you the big-ass scythe ninja cooler I stuck on it may have something to do with the 'cool' part

). Anyways, for media encoding and dvd creation.....Intel is the one to go with right now IMO.

All depends on what you need it for.

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