July 16, 2007 4:00 AM PDT

AMD's, Intel's fortunes diverge over past year

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AMD representatives said last month that Ruiz would have more to say about the company's "asset light" strategy, which could include a greater reliance on chip foundries, significant layoffs or both. He'll have several opportunities to field questions over the next couple of weeks.

The company is holding a special meeting for shareholders on Monday, reportedly to authorize an increase in the company's employee stock option program. The timing of Thursday's earnings call means executives will have to answer questions about Intel's results. And the following week, AMD will host a technology analyst day at its Sunnyvale, Calif., headquarters during which it can expect to face further inquiries.

With new desktop processors not expected until the end of the year--and new mobile chips not until well into 2008--it's going to be awhile before AMD has a spark that can generate revenue in the PC market. Barcelona should arrive in the third quarter, but server volumes take awhile to build momentum.

That means Ruiz will either have to propose significant reductions in costs or hope the market catches fire in the second half of the year. Either way, AMD executives will probably be glad when Friday rolls along.

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AMD's best asset...
AMD's best asset is Intel and the ability they have to shoot themselves in the foot. I don't think the problem is with AMD, it is that Intel has failed to fail over the last couple of years.

Long term AMD has been making lots of smart purchases. If they can stay somewhat competitive over the next two years, things should get interesting again.
Posted by ralfthedog (1589 comments )
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AMD being noticed
I think the biggest most analysts are missing is that this time around AMD has generated enough buzz to have people notice it. Last time when it introduced Opteron, few (if any) were interested in AMD given its miniscule share and its past performance. Moreover, it has managed to assure its clients that it is a serious contender in the market and they can move to dual sourcing options for the processors.

I feel that if Intel shoots itself in its foot again or AMD outclasses Intel, the movement of market share would be much faster. The way AMD lost 5pp mkt share in one quarter, Intel could be seen losing the same the next time.
Posted by nitin213 (3 comments )
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