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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: gzubeck who wrote (244054)	12/6/2007 3:46:47 PM
From: jay101	Read Replies (1) \| Respond to of 275872

<< Intel must be a total failure as a company cause they can't produce a high-end GPU card...quick everyone sell Intel...the company is totally crap...the arguments coming from Intel pumpers is ridiculous...>>> I think you are loosing it .... Catch up on the news a little?

To: gzubeck who wrote (244054)	12/6/2007 4:15:36 PM
From: wbmw	Respond to of 275872

Re: Intel must be a total failure as a company cause they can't produce a high-end GPU card...quick everyone sell Intel...the company is totally crap...the arguments coming from Intel pumpers is ridiculous... Relax, it's not a competition.

To: gzubeck who wrote (244054)	12/6/2007 6:57:06 PM
From: Petz	Read Replies (1) \| Respond to of 275872

NVidia has almost 4x the market cap of AMD now, which itself is trading close to book value. It's hard for me to imagine that NVidia+AMD could not be a formidable competitor to Intel. NVAMD would have to spin off the (ATI) GPU business to pass FTC muster. It wouldn't be easy, but it's doable. As far as the licensing agreements that forbid the licenses being "taken over," that could be handled by having AMD "acquire" NVidia, but NVidia management would be in charge. However, I still believe that those parts of the licensing agreements are an illegal restraint of trade, and unenforceable. No judge is going to hand a monopoly over to Intel on a silver platter. Finally, if AMD makes a little progress this quarter to reducing its losses, then, pro forma, NVAMD would be about breakeven already. The combined cash + marketable securities of AMD and NVidia are $3.4B, 2/3 the market cap of AMD. If AMD doesn't reduce losses to <$300M this quarter, the stock will tank another third, and NVidia could probably pick it up for $4B. It's hard to imagine an acquisition like this being taken favorably by WS. But if Jen-Hsun Huang waits until AMD is near bankruptcy, his dream of expanding to CPUs may be even more difficult. Probably the ideal scenario would be if AMD's losses are, say, in the $150-200M range and AMD's stock price remains mired in the sub-$10 range. Then it would be clear that the combined entity would be profitable, and eventually the acquisition would be accretive to earnings. Petz