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Advanced Micro Devices, Inc. Message Board

  • chrispaul113213 Aug 21, 2013 10:48 AM Flag

    AMD to make 80-100 PER CHIP in next gen consoles!!

    AMD is expected to makes 80-100 i encourage you to google it and stop listening to bashers,they have been here since the ride up from 1.80 and they aren't going anywhere,they shorted at the wrong time and are down a lot of money,they want to bash so they can cover.

    Sentiment: Strong Buy

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    • chrispaul113213 Aug 23, 2013 10:11 AM Flag


      Sentiment: Strong Buy

    • AMD APU sales = PS4 sales + Xbox sales
      = PS3 sales x 1.15 + Xbox 360 sales x 1,15 (growth factor)
      = 160 mio units x 80 USD/unit
      = 12,8 Billion USD
      thats a 12,8 BILLION USD DEAL for the next 6 years
      i.e. +2billion for the next years

      manufacturing costs ? full benefit of market competition (not like intel or nvidia)
      means low production costs

      Sentiment: Strong Buy

    • chrispaul113213 Aug 22, 2013 2:38 PM Flag


      Sentiment: Strong Buy

    • dreten707 Aug 21, 2013 3:07 PM Flag

      Rory already told us in his speech that the profit margins of the consoles are low double digits.
      Double digits from 10 to 99 meaning...
      Low double digits can't be 80-100 sorry but that's a fact you have to face.
      And yes I'm still long on AMD

      Sentiment: Buy

      • 4 Replies to dreten707
      • It's a smart move to set low expectations so that way when earnings come around we'll be in the money. Or he could just be honest and we should be just ok.

      • chrispaul113213 Aug 22, 2013 2:40 PM Flag

        they will make 80-100 per chip and thats just keeping it conservative,there is still a possibility that they might make 150 per chip, as last gen Sony paid over 300 for their parts and botch consoles are using strictly AMD, now its doesn't mean they will make it all in profits,but they will have profits baby!!i am guessing at-lest 30-50 in raw profit per chip.AMD BOOM!!

        Sentiment: Strong Buy

      • The fact IS, no one right now really knows what Sony or Microsoft will pay AMD per APU. Only AMD knows and the console makers and NONE of them have made the "exact" cost public yet. So every post saying what they ARE going to receive is only opinion right now. Possibly next earnings Rory will answer those question. Rory has NOT released that info as well. If he has, provide the website stating that. I think they the margins are probably better than the "sour grapes" NVidia company says (well known FUD company), along with the usual FUD AMD bashers who post here.

        And then there is expenses remember amd makes nothing except losses . Call it 15.00 profit clear per chip.

    • I suspect that AMD does not disclose its profit margins on Google....or maybe they do they are not very bright. But in that vein AMD get 25% the value of the retail sales price of the Game box sale? Amazed

    • I think those numbers were thrown around early this year.. long before people knew about the margins... if that's low double digits then amd must be selling these parts for $900... it simply doesn't make sense to throw these numbers around anymore.

      The consoles will keep AMD in the green but it's not the driving force, AMD's gain will come from the enthusiast PC market ( which is still very much alive ) where the margins are higher and then server/mobile markets which are still developing.

      Sentiment: Buy

    • There have been several ridiculously enthusiastic articles on AMD’s console business, with some people predicting that the company would pocket between $60 to $100 in profit for every Xbone or PS4 sold. This should throw cold water on such irrational exuberance — console margins, as we’ve previously discussed, simply aren’t that good. AMD’s own predictions for the impact on the company’s bottom line are very modest and should be treated as such.

      Joel Hruska Extreme Tech

      • 3 Replies to wall_st_knight_mare
      • pessemist Aug 22, 2013 2:46 PM Flag

        They sell the chips GROSS profit around $75 per/chip and net about 15% per/chip. That's why no big boys are jumping on the console band wagon. Why only retail suckers are buying. Why it gapped down the morning after last earnings and why it is still in the toilet. It will short-sqeeze up to about $4 just prior to next earnings and gap down the next morning when the obvious becomes more obvious. Why do you think other chip companies took a pass on the console market? Because the margins were, in their words, 'TOO LOW'. C'mon guys, the info is out there.

      • Thanks for your very "deep" insight. Since you know everything about AMD's margins, what will be their profit margin per APU chip. Ok, I'm not asking for the usual basher "opinion" they call facts, they still don't know the difference. If you don't know, which I don't think you do, you are just posting FUD from the intel fanboy club.

      • continued...

        Does that mean these wins aren’t important? Absolutely not. Building GCN technology into modern consoles has potential long-term upside for AMD — it gives game developers a common design target across the various platforms. An extra $80 million per quarter could make the difference between small profits and modest losses, and that’s revenue AMD could use. According to Read, one of the benefits of the semi-custom business is that the difference between gross margin and operating margin is fairly small — there’s not a lot of costs to account for once the R&D is finished and the products are shipping.

        The PS4 and Xbox One aren’t going to change AMD’s future, but they should provide some much-needed stability. If Kabini and Temash continue selling well, AMD will be in a much better position to navigate a PC market that’s become extremely unstable as customers move to different products and operating systems.

    • pessemist Aug 21, 2013 11:01 AM Flag

      Shorts are pretty much the only people making money off AMD these days. Short interest is the highest its been since 11/2012 and climbing monthly. Stock price spikes are short covering squeezes with only retail buying at the other end. AMD reached a recent high of about $4.40 It has lost. If you cover today that's an 18% return. Most are not covering.

      • 1 Reply to pessemist
      • chrispaul113213 Aug 21, 2013 11:06 AM Flag

        yeah,shorts are sheep at this point and sheep always get slaughtered,there are over 93million shorted AMD shares, and as soon as we get some solid news from AMD ..BOOM!!!shorts will cover and to the moon!!now no one can predict the market but one thing is for sure,AMD has been shorted massively and yet we remain @3.60 up from 1.80 and climb a bit every here and there,now this tells me one thing....maybe you shouldn't short based on what bashers say or what the crowed is doing,you usually get burned,and that will happen again to shorts.

        Sentiment: Strong Buy

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