ATI still hurting AMD

[PingSpike]

Originally posted by: Wreckage

Originally posted by: Tary88
If AMD dies it's Intels doing. It has very little to none to do with ATI.

If they had the $6 billion+ they wasted on ATI they would be doing just fine. They could have even kept their fabs. :|

I don't think either of those is the core problem. The problem is AMD was apparently having a drunken party after the Athlon 64 came out and then forgot to develop any new products after that.

I don't disagree that buying ATI was a likely poor move or that Intel turning around quickly hurt, but neither of those would have been as detrimental if they hadn't been trying to milk their one hit for all its worth.

I have to blame AMD management for failing to capitalize on their success.

 

[heyheybooboo]

Originally posted by: Wreckage

Originally posted by: Tary88
If AMD dies it's Intels doing. It has very little to none to do with ATI.

If they had the $6 billion+ they wasted on ATI they would be doing just fine. They could have even kept their fabs. :|

Nah ... there was (and is) no way AMD can win a Fab war with Chipzilla. Out-sourcing to TSMC, UMC and the 'Foundry' (is that what they still call it?) will be best for 'em in the long run.

Same with the ATI acquisition. The integrated platforms are pretty sweet-opening up the largest segment of the market to them, they got a weener with 790gx and things look to get even better with sb800. Hybrid CPUs with GPU cores are a big threat for Nvidia on entry-level platforms and the business desktop, and of course, the mobile markets.

ATI was tanking in 2005. And by 2006 when AMD got 'em I don't think Hector realized they were going to keep tanking. I'm not sure of the actual numbers but ATI is probably a third of the company they once were (how much of that was Intel business I don't know) ...

I also wonder how much of a 'defensive' acquisition this might have been. Once nForce starting taking off that really tied AMD to nVidia. Sheet-fire, AMD for the most part built nVidia's chipset business (which is now 1/3 of the company). When nVidia bought ULI that really put AMD in a box.

 

[taltamir]

Originally posted by: ViRGE
The Q4 financials are in; the graphics division lost 10mil on 270mil in revenue. This compares to a profit of 15mil on 295mil in revenue on Q4 last year, and a profit of 47mil on 385mil in revenue last quarter (Q3). This does mean that the graphics division was profitable for the year; 12mil profit on 1.165bil in revenue.

wow, thats just sad... put in 1.165 bil, get oiut 1.177 bil...