Kerrisdale Capital Investment Analysts predict that AMD will most likely have to file for bankruptcy in 2020

[zMeul]

source: http://latestworldtechnology.com/amd-company-predicting-bankruptcy-end-decade/

 

 

Kerrisdale Capital Investment Analysts predict that AMD will most likely have to file for bankruptcy in 2020. Experts have studied the market trends, the current demand in the segment of personal computers and financial records of the AMD.Alas, the findings were not the most encouraging. In the first quarter of 2015. AMD’s net loss was $ 180 million versus $ 20 million a year earlier. In other words, the financial losses have increased almost an order of magnitude. While sales in the first three months of this year decreased by a quarter – to $ 1.03 billion. In his analytical report Kerrisdale Capital Investment reports the following: ” We have identified a toxic combination of non-competitive product range, technological leaps competitors, several structural features, ineffective policies and deteriorating balance sheet. Despite some victories on the market, the time comes, and AMD will be unable to reach the level of profits in industries where technology leadership is crucial, not price . “

 

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when AMD goes under, at this point there's even a matter of "if", they would be the only ones responsible - they've played the "injured party" way to many times for their own good

[Deletive]

I don't think we'll let that happen, someone will buy them out before hand

[linuxnutcase]

well the U.S. gov may just bail them out.

[Kinda Bottlenecked]

Well that is if AMD continues as it is in its current state. Doubt Nvidia would want that to happen too

[Paranoid Kami]

AMD's non-competitive product range is their CPU's and their GPU sales are down because they didn't release anything yet. If Zen doesn't turn out to be that great, they're going to be in a lot of trouble. I don't think their GPU side will have a problem though. They can compete fine in graphics if they actually release them.

[Comessy]

They should sell their CPU department to Samsung or a company that will do something, AMD isn't working hard enough, they haven't released a new processor in years.

[The Benjamins]

but look at this Video they must be doing great

[Briggsy]

Very unlikely to happen... But in the event it does the technology will split off elsewhere.

 

Looking back, ATI sold their Adreno Mobile GPU technology to Qualcomm, and Radeon Desktop GPU technology to AMD. The Graphic technology that originated with ATI is far too valuable to disappear, and is in a majority of peoples cellphones, Game consoles, etc. It will continue under another company, or multiple companies if the worst happens, simply because of all the patents and designs.

 

My money is on this being a sensational analysis to grab attention, and not much more.

[Humbug]

We know they have enough cash to get through the next few years.

Whether they can start making consistent profits in 2016 i think depends a lot on Zen. I think they will do so. But If that fails like bulldozer then who knows what will happen...

[SurvivorNVL]

Very unlikely to happen... But in the event it does the technology will split off elsewhere.

 

Looking back, ATI sold their Adreno Mobile GPU technology to Qualcomm, and Radeon Desktop GPU technology to AMD. The Graphic technology that originated with ATI is far too valuable to disappear, and is in a majority of peoples cellphones, Game consoles, etc. It will continue under another company, or multiple companies if the worst happens, simply because of all the patents and designs.

 

My money is on this being a sensational analysis to grab attention, and not much more.

I personally still favor a Samsung buyout of AMD.

[Briggsy]

I personally still favor a Samsung buyout of AMD.

 

That would be preferable if AMD go under. 

[SurvivorNVL]

That would be preferable if AMD go under. 

Even if they don't go under--a Samsung buyout would be interesting.  Keep AMD as it is(NASDAQ listed stock, etc), funnel money in to them and use them to encroach on a variety of markets.  It'd be quite interesting.  I mean all Samsung monitors from here on out will support free-sync, and having Samsung as the 'parent' company for AMD could mean higher-binned ram modules for their own custom line of DDR, and sort of things like that.

[mr moose]

It's interesting they have said 2020, Given that they have spent the last 6 years or more at 73% chance of bankruptcy.

[Opcode]

Will never happen as the company has too much footwork in the industry to just up and vanish. In a worst case scenario it will end up bailed out by either investors or the federal government. They certainly would be bought out long before then considering how much IP the company holds.

[patrickjp93]

AMD's non-competitive product range is their CPU's and their GPU sales are down because they didn't release anything yet. If Zen doesn't turn out to be that great, they're going to be in a lot of trouble. I don't think their GPU side will have a problem though. They can compete fine in graphics if they actually release them.

It's not solely a matter of competing. AMD has a $2.4 billion cannon pointed at them, and the fuse reaches the powder December 2019. They have 5 quarters over which equally-sized, huge chunks of debt come due. Zen, R 300, and R 400 have to sell big for AMD to survive, or Intel could forgive its portion of the debt and try to find ways to reconcile with JPMorgan.

[Swndlr]

Well that is if AMD continues as it is in its current state. Doubt Nvidia would want that to happen too

forget what nvidia wants, we as consumers would suffer too if AMD were to die out

[RexinOridle]

They won't, at-least since China received a huge cut down on intel processors.

[Guest]

Will never happen as the company has too much footwork in the industry to just up and vanish. In a worst case scenario it will end up bailed out by either investors or the federal government. They certainly would be bought out long before then considering how much IP the company holds.

Someone want to try and explain a logical reason for them to be bailed out?

[Glenwing]

@zMeul Please update the first post to follow the News Section Guidelines: http://linustechtips.com/main/topic/11724-read-before-posting-in-this-section/

You need to actually say something of substance in your own words, not just copy a paragraph from the source and post a link.

[Opcode]

Someone want to try and explain a logical reason for them to be bailed out?

I personally doubt the government in itself would allow two monopolies to form with the disappearance of AMD.

[Victorious Secret]

Someone want to try and explain a logical reason for them to be bailed out?

The government would not care. Why?

AMD is not Intel. Intel has multinational fabs. Intel is heavily involved in supercomputing. There's a reason to keep Intel (and their billions of dollars of cash flow a quarter) around.

Neither of which are on the level of the banks. The ones who collectively got 700 billion (let's be honest, it's a fuck load more than that) to be saved from their stupidity.

AMD goes under? Big whoop. Intel is "forced" to give the X86 patents to another company to avoid said monopoly. Chances are Samsung gets it. Samsung is really good at making chips AND they contract their fabs out, so it's a pretty neat way to introduce a competitor into the segment WHO ACTUALLY TRIES.

AMD will go bankrupt and their assets plundered by the big boys long before the government starts to care.

[AlwaysFSX]

The government would not care. Why?

AMD is not Intel. Intel has multinational fabs. Intel is heavily involved in supercomputing. There's a reason to keep Intel (and their billions of dollars of cash flow a quarter) around.

Neither of which are on the level of the banks. The ones who collectively got 700 billion (let's be honest, it's a fuck load more than that) to be saved from their stupidity.

AMD goes under? Big whoop. Intel is "forced" to give the X86 patents to another company to avoid said monopoly. Chances are Samsung gets it. Samsung is really good at making chips AND they contract their fabs out, so it's a pretty neat way to introduce a competitor into the segment WHO ACTUALLY TRIES.

AMD will go bankrupt and their assets plundered by the big boys long before the government starts to care.

I would honestly prefer Samsung to get the X86 patents because then we'll have real leaps in computing.

[Opcode]

The government would not care. Why?

AMD is not Intel. Intel has multinational fabs. Intel is heavily involved in supercomputing. There's a reason to keep Intel (and their billions of dollars of cash flow a quarter) around.

Neither of which are on the level of the banks. The ones who collectively got 700 billion (let's be honest, it's a fuck load more than that) to be saved from their stupidity.

AMD goes under? Big whoop. Intel is "forced" to give the X86 patents to another company to avoid said monopoly. Chances are Samsung gets it. Samsung is really good at making chips AND they contract their fabs out, so it's a pretty neat way to introduce a competitor into the segment WHO ACTUALLY TRIES.

AMD will go bankrupt and their assets plundered by the big boys long before the government starts to care.

Samsung would buyout AMD long before any of that happens. With Samsung's fat pockets we'd see AMD thrive again and also see their IP spread to Samsung products (Imageon would be reborn). There's a lot that other companies can do with how much IP AMD holds. I doubt AMD will ever go bankrupt for that very reason as someone is always going to want to step in to grab what's there. AMD might not have the best products right now but they have a nice IP stack.

[qwertywarrior]

2020 IF AMD was still releasing crappy stuff

but Zen and HBM based GPUs is something ive never seen AMD so excited about

[Guest]

I personally doubt the government in itself would allow two monopolies to form with the disappearance of AMD.

It doesn't really make much of a difference: bailing out a company isn't going to fix the issue. Look at what was written above:

 

We have identified a toxic combination of non-competitive product range, technological leaps competitors, several structural features, ineffective policies and deteriorating balance sheet. Despite some victories on the market, the time comes, and AMD will be unable to reach the level of profits in industries where technology leadership is crucial, not price . “

 

They have relatively outdated products both in their GPU's and poor performing CPU's in combination with poor internal policies and an overall troubled financial past. Bailing them out is a a band aid to a bullet wound.