@biginvestors
What comes up, must come down - and some companies never come up again. AMD most likely is such a case and instead of putting your money at risk you should rather consider to short that stock. It might have some ups here and there, but in the longer term, AMD is in deep trouble.
The reasons for this have been discussed on this board quite often. AMD gets squeezed by Intel in its last remaining PC domain - low cost CPUs. Since AMD has nothing to offer in the higher performance compute space, which is entirely dominated by Intel, they can only compete in price. That was working reasonably in the past and Intel let AMD take that business. But since PCs were in decline and Intel had very price competitive solutions with its mobile based CPUs (BayTrail based Celerons), there is really nothing left for AMD in the PC business. Intel takes it all. Ok, AMD has graphics cards and the console business, but graphics cards are under strong competition from NVIDIA with decreasing market share for AMD. The console business is nice but the margins typically get worse the higher the volume. This year, AMD has sold more than 20 million of those chips to Sony and Microsoft, which certainly will lead to lower ASPs going forward. AMD won't go bankrupt soon I think, but they will suffer a lot from their weak technological position. A turnaround seems pretty impossible since AMD doesn't have the manpower anymore to achieve it.
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