AMD sees margins for 2011 above 45 % "Buy the shares while you still can"

[ajaidev]

"SAN FRANCISCO, Dec 9 (Reuters) - Advanced Micro Devices (AMD.N) expects gross margins to climb to above 45 percent in 2011 as it launches new products and modifies a manufacturing agreement, boosting its goal of becoming profitable again...."

http://www.reuters.com/article/idUSN0918022220091210?type=marketsNews

If i could i would have bough a zillion share when AMD's share price was around $2 now it would have pretty much double-tripled :rolleyes: 45% market this must be because of llano, dont get me wrong BD is gr8 but its still high end llano is mid end and people will mostly buy that... :p:

So what happened to the rumor that llano is launching in Q1 2010??

[god_43]

thanks for sharing!

[krogen]

With the share price of $9 I think AMD is going nowhere for now, considered they climbed up close to 100% in a last month (and something like 300% since January). If everything keeps going ok for them in the next two years, my prediction is $11 or so. But that's just a wild guess. As this whole article is.

[randomizer]

If i could i would have bough a zillion share when AMD's share price was around $2 now it would have pretty much double-tripled :rolleyes:

Amen to that.

[DeadlyFire]

I'd buy if I had even an inkling of the process of buying stocks online. I'm as good at that as my grandmother is at installing Windows :p:

[Russian]

"SAN FRANCISCO, Dec 9 (Reuters) - Advanced Micro Devices (AMD.N) expects gross margins to climb to above 45 percent in 2011 as it launches new products and modifies a manufacturing agreement, boosting its goal of becoming profitable again...."

http://www.reuters.com/article/idUSN0918022220091210?type=marketsNews

If i could i would have bough a zillion share when AMD's share price was around $2 now it would have pretty much double-tripled :rolleyes: 45% market this must be because of llano, dont get me wrong BD is gr8 but its still high end llano is mid end and people will mostly buy that... :p:

So what happened to the rumor that llano is launching in Q1 2010??

Its called Quadrupled. Price is around 8 bucks.

Also, i told a few friends to buy when it was at 2. They love me a lot right about now. :p:

[randomizer]

I'd buy if I had even an inkling of the process of buying stocks online. I'm as good at that as my grandmother is at installing Windows :p:

I'll second that one as well :ROTF:

[MirageSys]

I brought 100 shares at 4.30 watched it go down to 2 dollars in dismay. I then brought another 100 shares on the way up at 3.74. I thought hey, it will be 6 dollars or so soon, and ill sell it. This settlement and subsequent rise puts a different light on things.

I probably should sell them, but I don't want to. Greeds going to bite me in the ass...

[RAW-Raptor22]

I told a friend of my dads to buy some when it was in the low $3 range, she is very happy today. I bought Ford motor company at $1.83/share, it is now $9.05 a share. :)

[god_43]

well i bought amd when it was $23 (right before it fell like a rock), and once it went down to 1.80 i bought another 1000 shares.....i figure i should be even right now if i sell the whole thing. but i will wait, i bet the time to sell will be mid 2011 - 2012....or maybe hold out longer!



yes i know......i kind of screwed myself.

[Greg83]

I can see this happening.
If AMD takes all that money they got from Intel and Shares and puts it in gold :ROTF:

[[XC] gomeler]

I can see this happening.
If AMD takes all that money they got from Intel and Shares and puts it in gold :ROTF:

You meant R&D right? AMD is on the rise with ATI pulling some weight and AMD's product portfolio at least being price/performance competitive. Hopefully Bulldozer will be the kick in the pants AMD really needs.

[Ub3r-L33ch]

I told a friend of my dads to buy some when it was in the low $3 range, she is very happy today. I bought Ford motor company at $1.83/share, it is now $9.05 a share. :)

F**K YOU! :(
lol
PM me when you're about to buy some stock and I'll copy you :P

[Hornet331]

Higher margins mean higher asp, means higher price for the consumer... :(

[To(V)bo Co(V)bo]

What AMD needs is to put some money into marketing! A couple good commercials and people will notice them. The only people that really know what AMD is about, is the small tech literate crowd.

[BababooeyHTJ]

What AMD needs is to put some money into marketing! A couple good commercials and people will notice them. The only people that really know what AMD is about, is the small tech literate crowd.

I agree with you. People relly buy into marketing, just look at Apple.

[Andrew LB]

http://www.reuters.com/article/idUSN0918022220091210?type=marketsNews

I find it interesting that only a couple days after this article came out... AMD ended up on CNBC's "20 Stocks with the Biggest Potential to Drop" list.

Here: #11
http://www.cnbc.com/id/34382188/site/14081545?slide=11

I personally don't think it's good idea to buy AMD, nVidia, or Intel. The US Dollar is continuing to lose value, the Democrats in congress want to raise the National Debt ceiling from $12 Trillion to $14 Trillion so they can continue spending the country into bankruptcy, Moody's just warned the United States that if the massive deficit spending doesn't stop.... they're going to lower our AAA credit rating to a AA rating, similar to Greece, Mexico, or some Banana Republic.

On top of all this, it turns out the Federal Reserve is monetizing the countries debt... to further destroy the value of the dollar. For those of you who don't know Monetization is... (http://en.wikipedia.org/wiki/Monetization)

How are they doing this? It's simple.



NEW YORK (Reuters) - American International Group (AIG.N), the insurer bailed out by the U.S. government in September, said on Monday it sold $39.3 billion of assets to a fund established by the Federal Reserve Bank of New York.
The new fund, Maiden Lane II, was created to hold mortgage liabilities from an AIG securities lending portfolio that caused huge losses to the troubled insurer, the company said in a press release.

The New York Fed extended the loan to Maiden Lane II to enable the purchase of the securities for $19.8 billion.

AIG, once the world's largest insurer, said it agreed to add $5 billion in cash to the fund, which will eliminate liquidity issues associated with the company's securities lending program and facilitate the repayment of its debts.

The deal is part of a plan to clear the insurer of its obligations on mortgage debt.

The need to post increasing amounts of collateral to counterparties for other mortgage assets held by a financial products unit left AIG with $42.5 billion in losses over the last year.

AIG sells $39.3 billion in assets to NY Fed's fund | Reuters (http://www.reuters.com/article/businessNews/idUSTRE4BF00B20081216)

I guess intentionally destroying the value of everyone's life savings is truly "chance we can believe in".

[Manicdan]

I find it interesting that only a couple days after this article came out... AMD ended up on CNBC's "20 Stocks with the Biggest Potential to Drop" list.

Here: #11
http://www.cnbc.com/id/34382188/site/14081545?slide=11


that is just looking at their current price related to the 1 year estimated target. ive been watching that and the 1yr target has been going up steadily and makes sense since the price of amd has been going up too. just better than most other companies. a target price of 7.66$ sounds pretty nice right now, that puts them about where they were in 2007, before the recession. if you owned AMD in Oct of 08, you would have made 40% profit since then at 7.66$ a share.

i dont believe in reading articles like that are made in 5 minutes using a quick comparison of 2 numbers across thousands of holdings. no one actually looks into any reason behind it, there is no professional sitting in the background ready to defend this work. its just data analysis on a very, very basic level.

[NickF]

$7.66 sounds right for AMD, I don't see it going up too much this year, I think it'll sneak back down to the low $6s again. In 2011, I can see like $10 if Bulldozer shows up for what it's sounding like.

[Manicdan]

id rather just see AMD be more stable. i dont get how a company can be so volatile and still make it into the SP500, then again GM was in there too.

[generics_user]

I find it interesting that only a couple days after this article came out... AMD ended up on CNBC's "20 Stocks with the Biggest Potential to Drop" list.

Here: #11
http://www.cnbc.com/id/34382188/site/14081545?slide=11

I personally don't think it's good idea to buy AMD, nVidia, or Intel. The US Dollar is continuing to lose value, the Democrats in congress want to raise the National Debt ceiling from $12 Trillion to $14 Trillion so they can continue spending the country into bankruptcy, Moody's just warned the United States that if the massive deficit spending doesn't stop.... they're going to lower our AAA credit rating to a AA rating, similar to Greece, Mexico, or some Banana Republic.

On top of all this, it turns out the Federal Reserve is monetizing the countries debt... to further destroy the value of the dollar. For those of you who don't know Monetization is... (http://en.wikipedia.org/wiki/Monetization)

How are they doing this? It's simple.



I guess intentionally destroying the value of everyone's life savings is truly "chance we can believe in".

aside form the fact that moody's is some greedy blackmailing POS raiting argenture which destroyed millions of dollars by blackmailing bank and wrongfully lowering their rating you should know that this forum isn't the right place to discuss politics :down:

PS: you may want to remember that reppublicans have a history of generating huge amounts in debt while democrats always managed to lower debt so far which is not possible right now when you take a look at what#s left of your economy :shakes:

[Speederlander]

Democrats in congress want to raise the National Debt ceiling from $12 Trillion to $14 Trillion so they can continue spending the country into bankruptcy,
No offense, but isn't that pretty much what the Republicans also did when they were in power, spend until they were blue? The Pubs just spent all that money on other things.


Moody's just warned the United States that if the massive deficit spending doesn't stop.... they're going to lower our AAA credit rating to a AA rating
....Moody's. What was their track record rating the financial institutions and related entities prior to the collapse? I seem to recall the different ratings agencies came out of the collapse as proving that for-profit regulation is fundamentally conflicted and that they were totally incompetent. Indeed, with the beating they have taken, it would be reasonable to assume actions they take now are as tied to desired political outcomes as to any attempt at due diligence. We'll see if Moody's is around to rate anyone after the investor lawsuits and other legal actions against the ratings agencies play themselves out.

[RAW-Raptor22]

F**K YOU! :(
lol
PM me when you're about to buy some stock and I'll copy you :P

Ahahaahahaha. Will do. :)

[xenolith]

No offense, but isn't that pretty much what the Republicans also did when they were in power, spend until they were blue? The Pubs just spent all that money on other things.

This graph should scare everyone in the US.

http://www.project.org/images/graphs/US%20National%20Debt%20.jpg

It's like their answer to controlling debt has been to increase spending for a while now.

It's like you or your family spending everything you have coming in, then maxing out your credit cards, and then you plan to go out and buy a new house, a new car, and get more credit cards. :rolleyes:

[Manicdan]

id like to see that graph with inflation included

[Behemot]

id like to see that graph with inflation included

It covers with debt perfectly. On one hand, the dollars are printed. On the other hands, obligations are printed :down:

[clo007]

I'd buy if I had even an inkling of the process of buying stocks online. I'm as good at that as my grandmother is at installing Windows :p:
go open a scottrade account. send money to account. buy AMD. it's as simple as taking a shower.

[Manicdan]

It covers with debt perfectly. On one hand, the dollars are printed. On the other hands, obligations are printed :down:

i dont think so, what 14trillion buys today, is not same as what it would buy in 1970

[Speederlander]

id like to see that graph with inflation included

http://www.brillig.com/debt_clock/inflation.gif

[Manicdan]

ty, that looks less extreme, still pretty piss poor work by our leaders

[RAW-Raptor22]

ty, that looks less extreme, still pretty piss poor work by our leaders

And with Obama doubling the yearly deficit its going to make our economic situation totally better! :p: :up:

/Sarcasm

[Syn.]

And with Obama doubling the yearly deficit its going to make our economic situation totally better! :p: :up:

/Sarcasm

The Debt is a lie. It does not exist. How can you own money to your self?

[Sparky]

The Debt is a lie. It does not exist. How can you own money to your self?

It is owed to other countries.

But guys this site isn't for politics, let alone the news section.

[Shakti]

...

[railer]

For me AMD is like the 8th world wonder, billions defizit a year since years and still running, i really dont know how they do it. Good for us because otherwise intel and nvidia could almost charge what they want but still i dont get it how AMD does it.
+1

I'm also confused on how they pull this off. If i had a business that would return negative for few years it be damn closed a while ago.
I guess investors see the value in the future of AMD. It's very possible that lets say in 10 years AMD will be turning a major profit. Could be way sooner but someone has to pay for the years when they took a loss.
All i know is that we need them to stay afloat for this market to have innovation, and i hope that their share of it will expand in the future.

Personally i would not buy them now, to much gain to quick. AMD stock if not the whole market is overdue for correction.

[metro.cl]

For me AMD is like the 8th world wonder, billions defizit a year since years and still running, i really dont know how they do it. Good for us because otherwise intel and nvidia could almost charge what they want but still i dont get it how AMD does it.


+1

I'm also confused on how they pull this off. If i had a business that would return negative for few years it be damn closed a while ago.
I guess investors see the value in the future of AMD. It's very possible that lets say in 10 years AMD will be turning a major profit. Could be way sooner but someone has to pay for the years when they took a loss.
All i know is that we need them to stay afloat for this market to have innovation, and i hope that their share of it will expand in the future.

Personally i would not buy them now, to much gain to quick. AMD stock if not the whole market is overdue for correction.

with debt and convertible stocks, now that they runned out of that option they went to abu dhabi & NY State for more cash.

I don't see how AMD can do 45%, well maybe the IP part in AMD may do high margins but GF will be doing badly,, that is the only way they might do such great margins.

[LesGrossman]

For me AMD is like the 8th world wonder, billions defizit a year since years and still running, i really dont know how they do it. Good for us because otherwise intel and nvidia could almost charge what they want but still i dont get it how AMD does it.


+1

I'm also confused on how they pull this off. If i had a business that would return negative for few years it be damn closed a while ago.
I guess investors see the value in the future of AMD. It's very possible that lets say in 10 years AMD will be turning a major profit. Could be way sooner but someone has to pay for the years when they took a loss.
All i know is that we need them to stay afloat for this market to have innovation, and i hope that their share of it will expand in the future.

Personally i would not buy them now, to much gain to quick. AMD stock if not the whole market is overdue for correction.
Go look to the two graphs on this thread... and yes US is still able to build roads and hospitals and engage in wars despite that massive debt. Still confused about AMD?

[annihilat0r]

I'm totally talking out of my ass here, but my guess of how AMD is still able to float is that neither Intel nor the manufacturers would like AMD to go down. When you're posting losses quarter after quarter, money has to come from somewhere and that's the credit companies, and as long as your credit rating is good you can still borrow money and survive

[Serra]

IMO they're currently overpriced, I wouldn't buy now except as a long-term prospect. Of course, they do still owe billions of dollars and their future success depends on speculative products and productive marketing, so I'm personally not interested in that either. If they were more in the $4-$6 range maybe.

[Speederlander]

For me AMD is like the 8th world wonder, billions defizit a year since years and still running, i really dont know how they do it.
Which is why their stock is a risky proposition.

[daellum67]

It is owed to other countries.

But guys this site isn't for politics, let alone the news section.

some of it is, but not all
http://upload.wikimedia.org/wikipedia/commons/6/63/Estimated_ownership_of_US_Treasury_securities_by_c ategory_0608.jpg

the truth is there needs to be some debt, this is what the fed uses to control the economy, but a massive out of control spiral is pretty bad. everyone realizes this but cant seem to overcome the temptation to spend and is too afraid of the political repercussions of increased taxation and/or reduced handouts.

[64NOMIS]

AMD is a much different company than in 2002. There was no significant server, mobile, graphics, integrated graphics, or console business. Interesting to see the relative breadth and depth of the business now.

[Serra]

Let's try to stay on topic. We all know the US has some debt, but speaking from past experience here I would say that discussions of US debt invariably leads to US politics, and that's a place we don't need to go.

[SocketMan]

For me AMD is like the 8th world wonder, billions defizit a year since years and still running, i really dont know how they do it. Good for us because otherwise intel and nvidia could almost charge what they want but still i dont get it how AMD does it.

A big part of it (the debt) was buying ATI,and paying a little too much for it.Many have said it was a bad move (to buy ATI) and AMD is finished :rolleyes:
I have a feeling they changed their minds now.

[accord99]

A big part of it (the debt) was buying ATI,and paying a little too much for it.
If you mean by overpaying by about 75%, most of it in cash that AMD didn't really have in abundance.


Many have said it was a bad move (to buy ATI) and AMD is finished :rolleyes:
I have a feeling they changed their minds now.
Why, the last few years has pretty much affirmed that it was a terrible decision to buy ATI at that time and at that price. The only winner were ATI shareholders.

[god_43]

i think that the political stuff shouould be moved to OT.

[Calmatory]

AMD gaining market share, yeah right. At least not in the mainstream markets, simply because of the production capacity compared to Intel.

[duploxxx]

AMD gaining market share, yeah right. At least not in the mainstream markets, simply because of the production capacity compared to Intel.

has nothing to do with capacity, they plenty, it was only in 90nm days that they were capacity bound. with the 2 fabs on 300nm (36-40) now they are able to take that share. not doing enything else offcourse....

[qurious63ss]

has nothing to do with capacity, they plenty, it was only in 90nm days that they were capacity bound. with the 2 fabs on 300nm (36-40) now they are able to take that share. not doing enything else offcourse....

Never heard of Fab 40, anyways they only have 1 fab. Fab 1 which is actually amd's old fab 36 and 38 combined, but they actually only use the old fab 36 for processors. Fab 38 is currently in conversion from 200mm to 300mm but it will only be used for gpu and such. Fab 2 in NY won't be ready till 2012. So they are constrained

[Calmatory]

has nothing to do with capacity, they plenty, it was only in 90nm days that they were capacity bound. with the 2 fabs on 300nm (36-40) now they are able to take that share. not doing enything else offcourse....

Yeah right. If the book I read today was anywhere near correct, AMD had 2 active fabs back in 90nm days. Intel had.. 11(Not all of them were for CPUs though). It wasn't even theoretically possible for AMD to gain market share, simply because they could not produce enough. And they still can't.

So unless Intel parts stop selling(impossible, because the demand is WAY higher than AMD can supply), AMD won't gain market share too much.

Edit: Great. The thread is about margins, not market share. I'm off, blushing.