Gotta hand it to Rory over at AMD. He knows how to buy time and keep that massive payday coming into his personal account.
But once you ponder on the time factor, AMD sure seems to be on slippery turf. In fact, some of the very companies, such as Dell and Hewlett Packard, that it may be targeting to market the new chips are themselves trying to build similar products or servers based on the ARM technology platform. And if you are only bothered about Intel, that doesn’t help much either. Although Intel probably will never make ARM-based chips mainly because they don’t want to shell out royalties to the latter, the company has ramped up its efforts to launch low-power chips by itself, and one such product may be out as early as the end of this year.
If that happens, the only distinguishing edge AMD might have over cash-rich Intel will be its own ‘Freedom Fabric’ – a technology that integrates a lot of servers as part of a cluster and a legacy of the SeaMicro acquisition. But then, the question remains – will the edge still remain till 2014? I think not. This is one stock I would be watching from a distance, just to see if it does rise from the ashes. Till now, the chances are really slim.