Abu Dhabi Fund Said to Be Exploring Sale of Globalfoundries

[NTMBK]

Judging from the recent boost on their stock price, apparently not too badly.

I also suspect they grabbed some additional market share in dedicated GPU's this quarter -- the pricing on Radeons was definitely more aggressive during Black Friday / Cyber Monday than for Nvidia's offerings.

Probably more to do with buyout rumours (again), and Intel's continued 14nm execution problems.

 

[Arachnotronic]

Probably more to do with buyout rumours (again), and Intel's continued 14nm execution problems.

I don't think Intel has anything to do with it. Most likely investors are happy that AMD got a cash infusion from selling its packaging & test ops coupled with a report that AMD gained a small sliver of GPU marketshare.

Also keep in mind that Intel guided to PC market flat to slightly down next year which AMD investors probably took positively (though it seems somebody forgot to tell them that AMD's product stack will be woefully uncompetitive throughout the majority of the year as Skylake ramps more volume...)

Anyway, AMD is basically a penny stock at this point so big moves for nebulous reasons aren't unusual.

 

[ShintaiDK]

Anyway, AMD is basically a penny stock at this point so big moves for nebulous reasons aren't unusual.

Yep. It is basically a stock where the smart people fool especially those investing with emotions.

 

[TeknoBug]

Please don't sell it to Intel.

 

[Phynaz]

Judging from the recent boost on their stock price, apparently not too badly.

You mean how they have tracked the NASDAQ exactly?

Why not compare against Intel which has had triple the percentage gain of AMD?

People that have no idea about finance shouldn't post stock prices as an indicator of corporate health.

 

[MiddleOfTheRoad]

Why not compare against Intel which has had triple the percentage gain of AMD?

People that have no idea about finance shouldn't post stock prices as an indicator of corporate health.

Dumb comment.
I have a Bachelor's in computer engineering and a Master's in macroeconomics.

Intel is technically in a different financial sector (Large Cap) compared to AMD. Why not compare AMD to VIA as they are more similarly sized?

 

[mrmt]

Dumb comment.
I have a Bachelor's in computer engineering and a Master's in macroeconomics.

That doesn't make you an expert in corporate finance.

 

[Arachnotronic]

Dumb comment.
I have a Bachelor's in computer engineering and a Master's in macroeconomics.

Intel is technically in a different financial sector (Large Cap) compared to AMD. Why not compare AMD to VIA as they are more similarly sized?

This comment alone proves Phynaz' point.

 

[Phynaz]

Dumb comment.
I have a Bachelor's in computer engineering and a Master's in macroeconomics.

Intel is technically in a different financial sector (Large Cap) compared to AMD. Why not compare AMD to VIA as they are more similarly sized?

Wow. I almost can't think of a reply to this. You realize they are both semiconductor companies that directly compete with each other right?

http://biz.yahoo.com/ic/830_cl_all.html

 

[Exophase]

You mean how they have tracked the NASDAQ exactly?

That's not tracking NASDAQ exactly, there's a clear upward trend from September that substantially exceeds NASDAQ's performance. NASDAQ is right now about where it was at during its peak in August.

 

[MiddleOfTheRoad]

Wow. I almost can't think of a reply to this. You realize they are both semiconductor companies that directly compete with each other right?

http://biz.yahoo.com/ic/830_cl_all.html

What you said was just dumb. Complaining about financials -- so when I point out you are comparing a Small Cap company to a Large Cap (which is a financial metric).... You flat crashed and burned.

Why don't you compare an Indie mobile game publisher to Electronic Arts while you're at it?

Intel's Market Cap is pegged around $164 Billion..... AMD's hovers around 2 Billion. What a joke. The fanboy nonsense is pathetic on this forum sometimes. I can release an Android game tomorrow, doesn't mean I'm an actual Activision competitor.

 

[MiddleOfTheRoad]

This comment alone proves Phynaz' point.

I know, Right. The fact that I use common sense.

It's unrealistic to think a company that has a market cap of 2 Billion is remotely similar to one that is worth 164 Billion.

Comparing VIA Technologies (a 3.5 Billion Company) to AMD (a 2 Billion Company) is actually Apples To Apples. VIA also makes desktop CPU's, thus also a competitor to Intel by your same train of thought.

 

[Phynaz]

That's not tracking NASDAQ exactly, there's a clear upward trend from September that substantially exceeds NASDAQ's performance. NASDAQ is right now about where it was at during its peak in August.

Yes, I should not have used the word "exactly".

Over the last six months (the period in discussion) AMD has gained 1.52% vs. the NASDAQ at 1.20%, vs. Intel at 4.87%

 

[Phynaz]

The fanboy nonsense is pathetic on this forum sometimes.

I agree 100% with this statement.

 

[MiddleOfTheRoad]

People need to have realistic expectations, especially investors. Intel lost $4.2 Billion in mobile last year alone. That is twice AMD's Market Cap. Money that Intel could dump in a single year without any major damage. Comparing Intel and AMD will always be Apples To Oranges based on the scale of each respective organization.

 

[Phynaz]

Comparing VIA Technologies (a 3.5 Billion Company) to AMD (a 2 Billion Company) is actually Apples To Apples.

Are you sure you want to use that comparison to indicate AMD's health?

AMD stock price over last six months +1.52%
Via Technologies stock price over the last six months +4.46%

Using your metric it appears both Intel and Via are 300% healthier than AMD.

More self-ownage by the ADF.

 

[Arachnotronic]

People need to have realistic expectations, especially investors. Intel lost $4.2 Billion in mobile last year alone. That is twice AMD's Market Cap. Money that Intel could dump in a single year without any major damage. Comparing Intel and AMD will always be Apples To Oranges based on the scale of each respective organization.

I see. So AMD doesn't compete with Intel because it is woefully outmatched.

 

[MiddleOfTheRoad]

I see. So AMD doesn't compete with Intel because it is woefully outmatched.

VIA and AMD have carved out their own niches of the market -- but AMD or VIA will never grab a meaningful amount of market share from Intel (and it's always been that way). AMD nor VIA flat out don't have the production capacity. This zany line of thought would be like fanboys saying Smart cars are going to outsell Toyotas. Its a stupid argument.

 

[MiddleOfTheRoad]

Are you sure you want to use that comparison to indicate AMD's health?

AMD stock price over last six months +1.52%
Via Technologies stock price over the last six months +4.46%

Using your metric it appears both Intel and Via are 300% healthier than AMD.

They are 300% healthier than AMD. Haven't you seen the amount of debt AMD is carrying lately? AMD may be finally turning the corner, but they have a long way to go in regards to profitability.

 

[Exophase]

VIA and AMD have carved out their own niches of the market -- but AMD or VIA will never grab a meaningful amount of market share from Intel (and it's always been that way). AMD nor VIA flat out don't have the production capacity. This zany line of thought would be like fanboys saying Smart cars are going to outsell Toyotas. Its a stupid argument.

AMD might be nothing compared to Intel in terms of market cap, market share, and so on but that hasn't stopped them from trying to compete in most of the same areas. They have made and continue to make what appear to be serious efforts in laptop, desktop, server, and tablet spaces, in addition to the discrete GPU and console markets Intel doesn't touch. You can hardly say that VIA is making efforts anything like that. I don't know what their R&D spending is but I imagine that AMD's absolutely dwarfs them, even given how much it has gone down in the last few years.

If AMD is to resign itself to being another VIA they're going to need undergo a massive shift in corporate culture and probably cut a huge chunk of their workforce.

 

[MiddleOfTheRoad]

If AMD is to resign itself to being another VIA they're going to need undergo a massive shift in corporate culture and probably cut a huge chunk of their workforce.

A huge chunk of their workforce? They had 17,500 employee in 2007. They now have around 9,000. They have been contracting over the past decade. It will likely continue -- although, they really need to be a more nimble company.

 

[frozentundra123456]

Probably more to do with buyout rumours (again), and Intel's continued 14nm execution problems.

Well, you have to look at the historical trend. Even with the recent gains, they are only back to what were the historical lows before the stock cratered near the start of 2014.

Intel OTOH, is trending above the historical prices in 2013 or so, although with all the problems with 14nm and mobile disasters, I am surprised the stock has not tanked. Guess investors are banking of servers staying strong.

 

[Exophase]

A huge chunk of their workforce? They had 17,500 employee in 2007. They now have around 9,000. They have been contracting over the past decade. It will likely continue -- although, they really need to be a more nimble company.

And how many does VIA have? Less than 5000 according to LinkedIn (https://www.linkedin.com/company/via-technologies-inc). And a tiny fraction of the Glassdoor reporting compared to AMD. So I'd say no matter how much they lost in the last decade they have a huge chunk more to lose if they want to be like VIA.

 

[Phynaz]

VIA is also a subsidiary of a large conglomerate (Formosa Plastics Group) so they have greater resources available to them than AMD has available.

 

[NTMBK]

I don't think Intel has anything to do with it. Most likely investors are happy that AMD got a cash infusion from selling its packaging & test ops coupled with a report that AMD gained a small sliver of GPU marketshare.

Also keep in mind that Intel guided to PC market flat to slightly down next year which AMD investors probably took positively (though it seems somebody forgot to tell them that AMD's product stack will be woefully uncompetitive throughout the majority of the year as Skylake ramps more volume...)

Anyway, AMD is basically a penny stock at this point so big moves for nebulous reasons aren't unusual.

This is why I'm a software engineer, not a stock market analyst Cheers for the input!