AMD's Miss: Collateral Damage Limited
Posted Apr 08, 2008 12:10pm EDT by Aaron Task in Investing, Semiconductors, Recession
Related: AMD, INTC, NVLS, HPQ
Advanced Micro Devices dropped another (stink) bomb Monday night, forecasting first-quarter revenues below expectations and announcing plans to cut 10% of its workforce.
AMD said it had "lower than expected sales across all business segments," and some are understandably concerned the chipmaker's warning has broader implications for tech. A subsequent profit warning from Novellus Systems this morning is only furthering such concerns.
But AMD has a long history of shooting itself in the foot. The company has always been able to create cutting-edge technologies, but hasn't been able to sustain an advantage over Intel, be it because of internal production problems or its larger rival's ability to adapt and reclaim market share.
The number of tech stocks insulated from the macroeconomic slowdown may be shrinking, but AMD was never one of them, nor does its latest shortfall portend bad things for anyone -- other than AMD shareholders and employees.
surf's up......crikey
