Yes indeed, the AMD share price went up over 20% today and that is a winner.
But how do I, an Inteler and AMD short feel?
I feel just fine. I do not see this as a great win for AMD. I see this as an AMD surrender of sorts. It could have gone to USA Fed court and won 3 or 4 billion dollars had it won. Instead it got 1.25 billion dollars from Intel and for a price.
In return AMD has agreed to drop all action against Intel all over the planet. AMD has suddenly turned into a non-cooperative witness for any government that was trying to go after Intel.
How do you AMD fans feel about that? HAAA HAAA
Also Intel has gotten a 5 year cross license with AMD added on. No surprise there BUT the big news is this.
AMD has agreed NOT to allow any X86 chips to be produced in outside fabs other than in the Foundry. So there will be NO X86 chips made by Abudhabi. Intel is very happy with this.
AMD did get the 1.25 billion in cash to be paid in the next 30 days and AMD us for sure happy about this.
When Intel, because of AMD's silence and non-cooperation , wins in European Court and gets back its 1.4 billion, this will more than pay for the 1.25 billion it gave to AMD.
About the future--likely there will be some separation in the kinds of products AMD and Intel make in the years ahead.
We might very well see a time when the two are making different kinds of CPUs.
They do have a common enemy now in ARM. I think this threat might have more than any other thing, pulled AMD and Intel together to ready for the fight.
Intel did very well with the deal. AMD is for sure better off now too.
AMD will live or die based upon its new products. Also--if AMD raises prices, I am sure Intel will follow.
Money is easy to make if the target is net income and not market share.
Hector was an idiot. Dirky seems to be much smarter.
I am covering my short. If AMD screws up--I will again short it.