1. While Intel owns the rights to X86 32bit computing AMD owns the rights to modern x86 64bit computing. That AMD64 you see online when referencing modern 64bit operating systems, that's because AMD came up with the design and owns the rights to it. AMD currently gives rights to intel to use it in return for using their x86 32bit. However every new system currently comes with 64bit operating system, and less and less software is 32bit only.. while we still have enough of a support system that requires 32bit instructions in the long run it will be all phased out and AMD64 bit will be the sole instruction set. Guess who will have to pay whom for licensing then?
2. Console margins are low for the manufacturer but not for the component creators for example the Xbox 360 on launch cost $470 dollars to make, however was only sold for $400.. Guess who made money and who lost money. The component makers (CPU, GPU, Motherboard, plastics, etc).. They made money on each console sale. MSFT lost money in the short term, but the component makers made money from the start. They actually end up making more money as time goes by because the cost of producing those old components becomes cheaper.
3. The markets need AMD, even Intel needs AMD for competition. In fact AMD only came to be because the Governments forced INTEL to provide it's x86 arch to AMD so there would be competition in the market and INTEL wouldn't have a monopoly. Arm is picking up steam but it's still not considered a replacement for X86/AMD64. This means AMD can not go out of business without INTEL feeling the massive wrath of the world governments AGAIN. This is why I laugh whenever someone brings up the BK statement for AMD. That and the fact that their Business is worth triple our stock price on Bankrupt. In fact if all investors care about are short term gains they want AMD to go BK. Their stocks would be worth triple on asset liquidation.
So Keep your heads high AMD Longs.. At this stock price, we are fine
nice post. and we know the markets don't move on merit or truths, it moves when the big boys says it does, and IMHO, the big boys are going to push this thing pretty high. Any positive sign of positive income will cause this stock to skyrocket. Any new design wins with Apple, or any major company will cause this thing to pop... hold on. I think AMD may turn this company around.