Summary
Does AMD keep close enough tabs on the details? Risk underestimation cripples bold initiatives. Crisp execution and coordination of all the risks is something AMD needs to do better. AMD overpaid for ATI, ran short of cash and had to go overseas for capital.AMD will give up precious market share to Intel.AMD profitability remains just out of reach.At current market valuation AMD may be a takeover target.
Analysis
AMD traditionally over promises; such were its claims to have the first quad-core processor. Sometimes such tactics work. Now AMD works feverously to beat market expectations. AMD consistently has been very bullish; now it finds itself running from the bulls of Barcelona. Barcelona came up short on critical technical details. Its more conservative competitor Intel is now locking up key designs with its own quad-core processors and rapidly regaining market share from AMD.It seems like just yesterday the Barcelona was going to be the killer processor. Now its too late, too slow and not yet running full blast on a 45nm process. AMD now races to recover from its bug fixes in time to hit a rapidly closing market window in a darkening economy.It seems like just yesterday AMD hailed its ATI acquisition as a key piece of a grand strategy to integrate graphics onto a future processor. Recently the market cap of AMD was less than it paid for ATI; clearly AMD overpaid. The financial resources AMD surrendered have slowed its R&D and capex strategies and plans. Profitability remains problematic. Moreover AMD's lower market cap may make it a takeover target for semiconductor players looking to add processors and graphics to their product portfolio. AMD's recent Middle Eastern investor may have had that in mind when it invested in AMD.
