Chip Price War Staggers AMD

Apr 03 2007 @ 11:52AM by jimmy

Stock Off 60% In Past Year As Company Grapples With A Resurgent Intel. AMD stocks are hovering above $12 a share.....

Bad news for existing share holders, while on the other hand, people looking to invest to make a good buck in a year or two giving that AMD refinances, thier stock will most probably bounce right back up again.

"Its shares have plunged more than 60 percent during the past year on fears about the company's ability to continue gaining share without hurting profit margins. Meanwhile, Intel's stock has dropped far less.

Investors are concerned that AMD is spending too heavily to keep up with Intel's aggressive transition to next-generation manufacturing technology.

AMD's fall has wiped out about $10 billion in shareholder wealth. Analysts say the exodus will likely continue until the company resolves fears about its dwindling cash reserves and high capital expenditures."

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