AMD Now Worth Less Than It Paid for ATI - HotHardware
AMD Now Worth Less Than It Paid for ATI

AMD Now Worth Less Than It Paid for ATI

Overpaid much?  Or overestimated your chances? Could possibly be, if you purchased a company and the combined result is now worth less than your acquisition.

AMD reached its lowest share price for more than four years last week and, as a result, its market value dropped to around US$5 billion – that's $400 million less than it paid for ATI in July 2006.

Intel, AMD’s major competitor in the CPU business, has been on a roll for the past 18 months and is now worth around US$162 billion, which makes the chip giant more than 32 times the size of AMD in monetary terms.

Even worse for AMD is that its partner-cum-archrival, Nvidia, has a market cap of around $19 billion, which makes it almost four times as valuable as the struggling platform company.

Such a downturn from the time that AMD was the CPU for the hardcore gamer, when Intel was bringing up the rear.  To keep Intel on its toes, we need AMD to make a recovery.  Otherwise Intel may enter a complacent phase again, and that wouldn't be good for those of us uber-geeks.

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News:
AMD reached its lowest share price for more than four years
 

So if you are one of those stock-buying types, now is your chance! I believe in AMD, and I don't believe that they are on the ropes...staggering and bleeding, waiting for the knockout blow. Right now Intel has the hottest processor, but dollar-for-dollar (or Euro-for-Euro, depending upon your locale) AMD is in there. Is AMD in a quandary, as the above News news article suggests? I think not! CPU development is in constant flux, which is good, and Intel currently has the fastest. Not too long ago the roles were reversed. Don't underestimate AMD.

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Hi All,

I think AMD will make a comeback sooner than a lot of Folks expect.

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I'm with you Super Dave ;)

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Question is, has the stock bottomed out yet? Certainly worth a look for sure. They haven't been this low since 2003.

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*yawn* AMD has been in much worse shape before than this. When they're shutting down their fabs then it is time to worry.

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 Well AMD is just now starting to see some benefit of aquireing ATI with the new AMD chipsets, and it looks like the ATI vid cards are finally halfway catching up to Nvidia's performance level.  These next few years for AMD need to bring them back into competitive standing with their rivals or we are going to see high prices for lots of computer parts.

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Like my mom always used to tell me when I was really sick: "sometimes things have to get worse before they get better".

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