Not on warz etc; Just want your opinion on few things.
It just kinda struck me, AMD is lowering the value of their stock and then rising it. (making mlns on shares)
I want to know:
- Their actual profit from 290 series (while they don't sell many of those anymore they still make profit from them, while NV had 2 generations cards in that time - so spending wise they made more cash)
- Their actual profit from XBone and PS4 (they should have enormous amounts of profit from those... and actual % share of market on AMD should be a lot higher)
- Hidden server profit (they expanded to servers, and they downplay their current status for some reason; recently they got quiet standing on blade market and pretty much cut-out the server tesla gpu's.)
Profit seems to be downplayed by company buying up other companies or large quantities of shares in others just before Q reports.
Let me know why do you think AMD does that? Is there specific goal in this? Or could it be that they want people to stand behind them for gameworks and go against NV?
(shares now)
I'm guessing it will jump to $3 after 390x release, so buy up shares :| I will...
I wonder just how high the margins are on this. For some reason I don't see this as being all that big of a money maker even though volume is definitely working in their favor. I could be wrong on this and would welcome any explanation as to why.
Further more their quarterly statements have been slightly more appealing then a decaying corpse. May wonder just how long they can sustain this. As of EoY 2013 Intel's R&D expense was 10 times that of AMD.
Here's the link to the Motely Fool article. Granted it's old, but there's some interesting thoughts at least from an Intel v AMD standpoint. Mainly the following tid-bit: http://www.fool.com/investing/general/2013/12/30/can-amd-make-gains-against-intel-in-2014.aspx
"In addition to outspending AMD, Intel has some of the most sophisticated semiconductor manufacturing in the world. Add all of this up and it means that Intel can use research to make better chips, build a superior product, and do it faster than AMD could ever hope to." -- This likely holds true for AMD vs Nvidia as well.
As for share speculation... it could be a decent play assuming they can deliver. As for me I'm not very bullish on AMD. Zen more than the 300 series cards MUST be a winner.
Well i can agree on that, but amd is researching technologies in partnership.
(while they don't invest a lot of cash they partner up with other companies to create tech, like HBM)
or creation of global-foundries where as amd drops shares and global-foundries buy up as much into amd. Allowing AMD to be scape goat kinda for needs of debts.
While yes, amd doesn't have their own foundries anymore; NV doesn't either; NV might be in crappier situation if its about companies printing their gpu's. NV sued samsung and few other chip makers, as far as i know samsung is very emotional for those cases of being sued. They will do a lot to hurt nv as company, and maybe its prep for samsung acquisition of amd, not sure.
Comparing to Intel is not a fair comparison. Intel R&D does about everything. For supercomuting to many core chips like the PHI and about 100 other scientific computing stuff that has nothing to do with the market that AMD targets and those parts take most of Intel's R&D budget.
The same goes for Nvidia VS AMD on the GPU market.
Here's an article regarding Intel v AMD: http://247wallst.com/technology-3/2015/06/02/could-amd-go-to-zero/
PC sales are in decline as the mainstream consumer market shifts more to mobile/tablet/phone sectors. R&D is unbelievably important to all chip makers is that is what funnels innovation and the ability to remain competitive.I do not think it's an unfair comparison at all. Intel's R&D projects will likely have benefits across more than just one particular project.
AMD's debt to equity ration is a shocking 133.41 ( https://ycharts.com/companies/AMD/debt_equity_ratio ). For those who don't know how debt/equity works here's the following link, http://www.investopedia.com/terms/d/debtequityratio.asp . AMD's competitors are below a 1:1 debt/equity ratio. To summarize AMD has gone all in on Fiji and Zen. They have to be world beaters and AMD has to have the supply-line to back it up.
Now to bring this back to the original topic of shares and investing, this would be classified as high risk/high reward. I'd be interested more in shorting AMD.
