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

[Opcode]

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:

 

They have relatively outdated products both in their GPU's and poor performing CPU's in combination with poor internal policies and an overall troubled financial past.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.

That's the thing is we really don't know what's going to happen to the company between now and then. Analysts are more then like projecting what would happen if the company continued their current track record. According to the article they are making these projections based off PC sales and financial records.

 

Experts have studied the market trends, the current demand in the segment of personal computers and financial records of the AMD.

 

A market that even AMD has stated (during FAH) is declining in revenue and they plan on shifting their focus elsewhere to make money. I mean we all know if AMD does what it's doing right now the bomb is going to go off sooner or later. Although with still time above water (not financially) they have to hit their plans home and reel in some money. Once they can prove they are a profitable company and hit a lot of their debt before then they will likely have investors interested again to bail them out of what little they owe at that time. I think the term "do or die" best fits this scenario.

[Guest]

That's the thing is we really don't know what's going to happen to the company between now and then. Analysts are more then like projecting what would happen if the company continued their current track record. According to the article they are making these projections based off PC sales and financial records.

History more often that not repeats itself. I was at a dinner a fortnight ago and Asus have acknowledged that there are huge declines in PC sales recently and this is a continuing trend in favor of mobile devices; a market heavily dominated by Intel, NVidia and Qualcomm.

[zMeul]

@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.

I do not like this rule and especially I won't comment on this news post because what I have to say on the matter won't make people happy

I will be accused of being an AMD hater, nVidia's loverboy or Intel's biach .. thank you, but no thank you 

 

AMD was in the news recently, twice in the span of a week, and that reflects perfectly on their capabilities as a company

[ShadowCaptain]

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

 

Yeah Intel or Nvidia

 

 

I do not like this rule 

 

Then don't post news the point is to get the discussion flowing by starting off with your own view and it stops people spamming hundreds of articles with no thought - the forum is not google search or a news website, its a place to discuss topics. You might not like the rules, but you still have to follow them

 

Its easy to stay objective you could say something like "Interesting, if AMD were to go down, Intel would have monopoly on the market, but perhaps AMD can turn it around with their talk of focusing on performance gaming parts in future line ups"

 

There, I did it for you and there is nothing fanboy about that statement

 

 

And yeah AMD have said "we dont want to be the cheap option" so maybe they are really going to focus on competing aginst intel and nvidia over the next few years

[Kinda Bottlenecked]

I do not like this rule and especially I won't comment on this news post because what I have to say on the matter won't make people happy

I will be accused of being an AMD hater, nVidia's loverboy or Intel's biach .. thank you, but no thank you

AMD was in the news recently, twice in the span of a week, and that reflects perfectly on their capabilities as a company

What? You can not like a rule but I think you still have to follow it... :B

[zMeul]

What? You can not like a rule but I think you still have to follow it... :B

it's like "The Law", yes it's there, but doesn't mean I have to agree with it or follow it - that's why there's the police, in this case moderators

[Kinda Bottlenecked]

it's like "The Law", yes it's there, but doesn't mean I have to agree with it or follow it - that's why there's the police, in this case moderators

So the "police" have given you a warning and you still choose to not follow it?

[zMeul]

So the "police" have given you a warning and you still choose to not follow it?

I have free will, don't I?

[Kinda Bottlenecked]

I have free will, don't I?

You have it, but it comes with consequences most of the time.

[Psykomantis00]

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.

They were trying to be the cheaper option. It isn't working. They are going to turn up the heat. It's going to be interesting to see what happens, but I've already switched to intel. They took too long. 

[deviant88]

I still hope samsung buys AMD,their are ones with the best position to do so,have their own fabs,they need and use cpu/gpu technology,they have the funds and resources to do anything with AMD's IP and business.Cant think of someone else,that could use AMD's assests properly.

[Ashaira]

I personally still favor a Samsung buyout of AMD.

 

That would be nice but only if Samsung doesn't try to force their way of doing things on them. If they would just funnel money and use their tech for free it could bring great things (like amd specialized samsung monitors, possible all in one samsung pcs, cross device software with samsung phones and amd hardware) but i don't know if i trust samsung enough to let amd do their thing.

[shawno]

Doubtful report.

Doesnt take into account multiple factors and seems like theyre taking their current path as the only consideration and not future advances in technology.

Business is a strange place and each company has thier ups and downs.

[Bouzoo]

I have free will, don't I?

Yes you do, and the consequence may be locked topic until you update the first post, wouldn't be the first time it happened.

On topic:

I don't know, they have some exciting stuff coming for desktops, and are growing in laptop market. I hope they don't go bankrupt.

Now imagine if Samsung would to buy them, all them plastic CPUs and GPU.

[Guest]

Doubtful report.

Doesnt take into account multiple factors and seems like theyre taking their current path as the only consideration and not future advances in technology.

Business is a strange place and each company has thier ups and downs.

Interesting point however that is the only factual information that they have to work with because you cannot base that sort of financial outlook on products that are still in development in this case. If it were Apple's new phone or a new keyboard from Razer then it would be a different case because there is an expectation and precedence that has been set as to how the product performs. Everyone may be claiming that new CPU's and GPU's from AMD are the big change in their companies financial outlook however until they come out and sales figures are looked at, they're nothing more than rumors. 

[EChondo]

Personally I want to see what Fiji and Zen will bring. If they both kickass, or at least Zen does, then we(the consumers) won't have to worry about a AMD bankruptcy/buy-out.

 

It'll be an interesting 5 years.

[shawno]

Interesting point however that is the only factual information that they have to work with because you cannot base that sort of financial outlook on products that are still in development in this case. If it were Apple's new phone or a new keyboard from Razer then it would be a different case because there is an expectation and precedence that has been set as to how the product performs. Everyone may be claiming that new CPU's and GPU's from AMD are the big change in their companies financial outlook however until they come out and sales figures are looked at, they're nothing more than rumors.

however id expect razer to go bust well before amd. razer owns little ip and licence switches from cherry so all they have is their brand.

Apple failed back in the day too. Bow look at them.

These days innovation keeps company's afloat not stock prices.

Amd in theory could sell patents for certain divisions and still keep them afloat for quite some time- something alot of companies would love to get thier hands on. Even if they sold their cpu division if zen flops the ip would surely be significant?

Agree that the truth is amd have remained dormant for a couple of years. Nvidia have grown as they have released new products. Amd have just refreshed existing tech in both cpu and gpu spaces without releasing new products.

Im confident that the next tiers for delivery this year will reinvigorate them and subdue these types of reports.

[mr moose]

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

Because they are the almighty AMD, without them the technology industry will come to a standstill.  The government knows that if nvidia have market monopoly little children will be born with defects and single fathers will lose their jobs.  AMD is the only company smart enough to help Hynix develop HBM, or push for old standards to become current in the name advancing the industry.  Also if AMD goes bust Richard Huddy might get a job doing something important and that could be dangerous.

[johnnysasaki]

Because they are the almighty AMD, without them the technology industry will come to a standstill.  The government knows that if nvidia have market monopoly little children will be born with defects and single fathers will lose their jobs.  AMD is the only company smart enough to help Hynix develop HBM, or push for old standards to become current in the name advancing the industry.  Also if AMD goes bust Richard Huddy might get a job doing something important and that could be dangerous.

All logical reasons, except for that Richard Huddy notion.

[Guest Kloaked]

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.

 

*puts on tin foil hat*

 

Maybe you're right about that last part and they're wanting someone to buy them out.

 

Samsung pls

[SuperPug]

These days innovation keeps company's afloat not stock prices.

 

Problem is that its pretty hard to innovate when Nvidia can afford to pay the talented engineers twice as much as AMD...

[Notional]

Does not sound like Kerridale, knows what's going on in AMD. Surely, if AMD continued on their current course, I'd understand. But with HBM, new GCN, 14nm ff, Zen, etc, I doubt things will continue the way it is.

[Sauron]

Fingers crossed for samsung picking up the pieces. Or anyone with a LOT of money and willing to keep investing in the deskop market.

[Briggsy]

*puts on tin foil hat*

 

Maybe you're right about that last part and they're wanting someone to buy them out.

 

Samsung pls

 

It's interesting too because when you look at both AMD and Nvidia Financially (can't really compare Intel, they are huge), the only difference between the two is net profit. Their gross revenue is similar, but AMD apparently has a leaky piggy bank. whether it's going to shareholders, or to pay off their current debts, or because their production costs are high... AMD are obviously trimming down their company and becoming more efficient, but a Merger or a buyout for AMD would solve all their problems. Having Samsung as a parent company would help trim AMD down a lot, and increase R&D.

[Guest Kloaked]

It's interesting too because when you look at both AMD and Nvidia Financially (can't really compare Intel, they are huge), the only difference between the two is net profit. Their gross revenue is similar, but AMD apparently has a leaky piggy bank. whether it's going to shareholders, or to pay off their current debts, or because their production costs are high... AMD are obviously trimming down their company and becoming more efficient, but a Merger or a buyout for AMD would solve all their problems. Having Samsung as a parent company would help trim AMD down a lot, and increase R&D.

They'd be kicking Nvidia's asses for sure.

I don't know how much Intel is holding back, but it'd also help them compete with Intel again if that's what they want.