AMD, Which Lost Over $2.8 Billion In 5 Years, Takes a Hit After New Report (arstechnica.com)

An anonymous reader quotes a report from Ars Technica: On Monday, AMD's stock price plunged nearly 9 percent after a report by Morgan Stanley, a major investment bank, which found that "microprocessor momentum" has slowed. According to CNBC, a new report by analyst Joseph Moore found that "cryptocurrency mining driven sales for AMD's graphics chips will decline by 50 percent next year or a $250 million decline in revenue. He also forecasts video game console demand will decline by 5.5 percent in 2018." As per AMD's own SEC filings, the company lost over $2.8 billion from 2012 through 2016. However, new releases from AMD suggest that it may be on something of a resurgent track. As Ars reported last month, AMD's Ryzen and Threadripper processors re-established AMD's chips as competitive with Intel's.

Comments

Undervalued

[sexconker]

I'm terrible at picking stocks. But I'd say buy now.

AMD had a fantastic Q3 and predicted a slower Q4 (as expected), and the stock has fallen a ton in the past few days. It really makes no sense.
AMD also has fantastic products out now with more to come.

Re:Undervalued

[Osgeld]

the stock market is mostly driven by lemming mentality, emotion and knee jerk reactions

Re:Undervalued

[bobbied]

the stock market is mostly driven by lemming mentality, emotion and knee jerk reactions

Actually, not really. Where this is true for the "retail" market and individual investors who think they can trade stocks on hunches like they play poker and don't know what they are actually doing, the majority of stock trading is driven by program trading.

The people who trade on emotion, get slaughtered by the big program traders who can do all sorts of clever tricks by looking at data your average retail investor cannot afford to get. Even if you *could* afford to get the data, the big program traders would beat you to the trade because they pay big bucks to be physically closer and being milliseconds behind will cost you.

Imagine being able to see all the queued up orders for a stock and having enough money to manipulate the stock price in the short term... Then you can sell short, trigger a stack of stop loss limit orders which are near the current price turning them into market orders and collect some cheap shares to cover your short and make a tidy profit with nearly zero risk. Doesn't happen all the time, but you just turn the computers on and let them watch for it while you play golf and rack in the cash when it happens. Of course, there are other ways to make money doing stuff like this...

Dropped the ball on mobile

[Eravnrekaree]

Both AMD and Intel dropped the ball on getting x86 onto smartphones, despite the benefits in compatibility between desktops and phones it could have provided. It certainly would have been possible.

Desktops and laptops are still going to remain the top end of the market, and the choice for doing real work, also gaming, since the form factor allows for expansion and ventilation to support more powerful systems. We are still far away from being able to have the CPU power for real, lifelike gaming, such as real time ray tracing. So there is plenty to drive the need for faster CPUs. Desktop systems should still be for people who want a lot of expansion including a larger case, this is the niche it can fill. The idea that by offering compact desktop cases sort of runs against why someone would want a desktop system and weakens what differentiates it from a laptop. Why buy a compact desktop system when it offers no expansion advantage over a laptop? I see many manufacturers offering compact desktop systems, when really I doubt it will help.

Mobile and desktop systems really fill two different market niches so its a mistaken idea that the mobile can replace a desktop system. Working on a spreadsheet or taxes on a 3" screen? No thanks.