AMD will own the microserver market which is expected to triple this year alone
XBOX and PS4 implications aside, AMD has other sheet going on. Forget the raw numbers and path to profitability, because the idea that AMD is relevant again and the anticipation of what's coming up will drive this stock price to 4 dollars while bears shake their heads and try to figure out what's going on.
Problem is, the only AMD microservers that are selling all use Intel chips. And worse still, Intel has superior microserver technology due to its acquisitions of Infiniband, Cray's switching fabirc and a few others. Intel is inside every Seamicro server sold and Intel is inside every other OEM's microserver that uses Intel fabric technologies. Seems to me that Intel, not AMD, owns microservers in a very big way, and that the only credible threat to Intel's dominance won't arise for another couple of years while Sansung and AMCC ramp up their server offerings. Intel has demonstrated for 40 years that AMD is no competition.
AMD will be in bankruptcy court within 6 months, fool.
"Problem is, the only AMD microservers that are selling all use Intel chips", who care about Intel chip or not, bottom line AMD make money in Microserver, sell intel chips make money, sell their own chip make more money. I like their idea because there is "no competitor" and more diversify than using their own chip only.
AMD can't "own" a market in which Intel is competing. Products based on Intel chips, including AMD's own Sea Micro servers that include Xeons, are superior to anything else AMD produces.
So Intel will win by selling servers AMD can't sell, and Intel will win when AMD sells their own best servers. What's left for AMD is the lesser fraction of the lesser fraction of the microserver market.
Too bad for AMD longs. Nothing comes up a win for you.