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.


Tags:  AMD, ATI, RT, now, AI, id, AM
Via:  Bit-tech

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