AMD Grabs First Quarterly Profit In Three Years (Thanks To Intel) - HotHardware
AMD Grabs First Quarterly Profit In Three Years (Thanks To Intel)

AMD Grabs First Quarterly Profit In Three Years (Thanks To Intel)

Mark this one down--it hasn't happened in a long, long time. But frankly, we're hoping it's a sign of things to come, and the real turnaround that AMD needs to seriously rival Intel and drive prices down as a whole in the microchip sector. Competition is always great, so we'd encourage you to put your fanboy suit aside and actually consider just how remarkable this is for every PC enthusiast.

AMD has just posted a profit for the quarter, which is its first in three years. Now, we should point out that the most likely reason that said profit was posted is Intel. We know you're probably scratching your head, but we should probably remind you that Intel shelled out a whopping $1.25 billion to AMD earlier in the quarter in order to settle some long-standing disputes.



The huge paycheck wasn't the only good news for AMD, however. It also benefitted from an overall lift in the PC market, no doubt helped by the holiday buying season. Revenue for the company was up 42% year over year. Unfortunately, when you take away the bonus check, AMD lost $57 million on the quarter, but it still feels like AMD is on the up and up. $1.25 billion can go a long way in the R&D department, and we're hoping the chip maker doesn't squander this once in a lifetime opportunity to really do something special on its most hated rival's dime.
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Analysts seem pessimistic, AMD's stock fell 12% after the earning report came out. AMD is in the middle of a weak product cycle in CPU with respect to Intel, and is unlikely to regain lost market share near term.

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Hopefully that money from Intel will allow AMD to put out some chips that will challenge the i-series chips Intel is putting out.

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>> Now, we should point out that the most likely reason that said profit was posted is Intel.

And you should also point out that the most likely reason they had not previously posted profits is also Intel and anticompetitive business practices.

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But even taking Intel's anti-competitive practices into consideration, AMD has been in Intel's shadow for the last couple of years.

AMD primary CPU market's revenue improved 14% over last year's numbers, while the GPU revenue went up by 40%.

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We would be in trouble without AMD's existence keeping prices within reason. Competition only does the consumer good. Therefore, I buy from AMD to foster competition and to get more bang for my buck, Chuck!

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