I could not agree with the author of this article more.
 
http://www.overclockers.com/tips01125/
 
Either AMD could have focused on CPUs and built the New York fab and gone toe to toe with Intel on pricing with the view of getting to the 30% mark, or it could have bought ATI and put its focus on Fusion and GPUs, or if it was going to do both it needed fix it's balance sheet and replace the 5 billion it shelled out for ATI pronto.
 
Instead Hector tried to have his cake and eat it too, now hes faced with pulling a quick about face in terms of strategy or going to a now very hostile capital market hat in hand. The results are likely to be ugly, particularly after AMD's next earnings announcement.

StrollinHo is a jerk. He always has the bleakest outlook for AMD no matter what.  
 
In my mind the only "mistake" Hector made was this price war. X2 should not be at $99. Buying ATi was actually a good move as they at least have a somewhat greater "income" and the ability to get into diverse new markets. It is said that mobile will eventually overtake desktop and numbers and already has in growth so Fusion will definitely garner wins this year.
 
AMD may post a loss this Q1 but by theend of Q2 it will pick p nicely as K10 shoul dbe totally "exposed" which shoul dgive them a boost as they will no longer be behind Intel.
 
I can agree though that the whole problem is Intel's continuing behavior which keeps AMD makng a lt less even though they have been - and still are in my opinion - in the technical lead with a mmuch better platform and much better plans for "chipset/socket compatibility."

I don't think AMD had any choice but to purchase ATI. In order for AMD to grow, they needed to be a major player in the integrated GPU market at the very least. Being able to offer an all-in-one solutions to OEM's is huge, and has been Intel's bread and butter.
 
Not to mention it also gives AMD an in into new markets including ultra slim mobile, set top, home theater etc. The purchase price AMD payed for ATI was a bargain IMO when you consider the technology that ATI brings to the table. The only question left is how well AMD/ATI execute. The decision Hector made was sound and vital IMO.
 
BTW Ed is an idiot that takes every opportunity to take a swipe at AMD.

I dunno. I actually think AMD should have made the move on ATI like last year before they announced AM2. They had money, and intel was suckin, so that would have been a good time. I think its good they got ATI though, and would not have worlked out if they had done it later.
 
And yes, it IS INTEL's fault partially, because of the price war.

I think most true AMD supporters will appreciate although I am a micro consumer of resale cpu's, i am usually a perceptive buyer. what does that mean?
 
For some reason I am usually in tune with a trend before i even know its a trend, as a true intel fan boy why have I been buying more and more amd processors as the prices fall?
 
 
For some reason amd chips seem so cheap i am compelled to use them - a 4200+ for $110 or e4300  -  i choose the 4200 this week.
 
2nd - once the r600 comes out i think alot of ati users will come to amd's rescue. iI just sold my personal pair of x1950's on ebay yesterday, in anticipation of the r600. I have no idea why (well i do it was 20 cents listing day)- i do trade up my cards every few months - subconsciously i am concluding the r600 is coming out to rule.
 
 
 
 
Conclusion its going to be good news for amd soon!

 
If integrated solutions were/are so important to their futures, then the transaction could have been done as a stock-swap merger, or AMD could have purchased ATI with stock instead of cash, or Hector could have gone and raised cash immediatly after (if not before) the transaction.  
 
Hector did none of these things, and the facts are there for all to see. Facts in terms of stock price, facts in terms of the ugly balance sheet, facts in terms of AMD is losing money instead of making it, facts in terms of there not being enough cash to fund their announced cap ex plans, facts in terms of Hector is going to have make some very unhappy decisions soon to address some of these things, and screaming "fanboi" at the messenger is not going to address any of these facts. The longer the reckoning is delayed, the longer AMD puts its fingers in its ears and yells lalalala, the harder it will be for AMD to ever recover, and that is not good for anyone particularly AMD.

 
 
AMD's problem is not Intel nor lack of money, AMD's problems stem from poor business decisions and inferior process technology. AMD has alwasys had to buy process technology from IBM to cmpete below 0.13 um nodes. I said it 6 months ago that the NY fab will not happen for now and that AMD will not record a profit for the next 3 years, that means end of 2009. AMD has been known to make very stupid decisions, Jerry Sanders is an idiot, Hector actually was the one to put AMD on the right track, I am afraid though he has now been assimilated by Jerry's culture. On the other hand, the only idiot Intel had was Craig Barrett and he is no longer at the helm. I expect AMD to rely more and more on foundries to make their silicon. If Barcelona flops, AMD will certainly go fabless and develop their process with IBM to farm out to the foundries.

 
If integrated solutions were/are so important to their futures, then the transaction could have been done as a stock-swap merger, or AMD could have purchased ATI with stock instead of cash, or Hector could have gone and raised cash immediatly after (if not before) the transaction.  
 
Hector did none of these things, and the facts are there for all to see. Facts in terms of stock price, facts in terms of the ugly balance sheet, facts in terms of AMD is losing money instead of making it, facts in terms of there not being enough cash to fund their announced cap ex plans, facts in terms of Hector is going to have make some very unhappy decisions soon to address some of these things, and screaming "fanboi" at the messenger is not going to address any of these facts. The longer the reckoning is delayed, the longer AMD puts its fingers in its ears and yells lalalala, the harder it will be for AMD to ever recover, and that is not good for anyone particularly AMD.
 
u come across like an intelliot

all I know is that when I purchase my next laptop or desktop(far future) it will have AMD/ATI integrated gpu in it.

 
If integrated solutions were/are so important to their futures, then the transaction could have been done as a stock-swap merger, or AMD could have purchased ATI with stock instead of cash, or Hector could have gone and raised cash immediatly after (if not before) the transaction.  
 
Hector did none of these things, and the facts are there for all to see. Facts in terms of stock price, facts in terms of the ugly balance sheet, facts in terms of AMD is losing money instead of making it, facts in terms of there not being enough cash to fund their announced cap ex plans, facts in terms of Hector is going to have make some very unhappy decisions soon to address some of these things, and screaming "fanboi" at the messenger is not going to address any of these facts. The longer the reckoning is delayed, the longer AMD puts its fingers in its ears and yells lalalala, the harder it will be for AMD to ever recover, and that is not good for anyone particularly AMD.
 
But that's what the deal was. $2.5B in stock and $2.5B in cash. The stock is doing bad because of the doom and gloom analysts who wuldn't know a good thing if it slapped them in the head... with a shovel.
 
AMD lost money for years in the 90s and early 00s. They finally got profitable after Opteron and I hope that they do the right thing with K10 prices.
RUiz said hat Barcelna will be intro'd at the original Dual Core Opten prices. I hope the same goes for Agena and that Kuma slots between X2 and Agena price wise, it definitely will per wise.
The real challenge is to make more Turions and get a new mobile chip out so they can charge a premium (if t's K10) to buoy the desktop prices.

AMD's in a pinch. Now does anyone have a clear solution to get them out of it besides being bought out?

 
Just get everyone to go buy AMD processers and stock, they will gain their money back if EVERYONE does it  8)

 
Is there something you are disuputing, or are you just engaged in name calling? I'll be happy to debate financials. If you want to engage namecalling contest you'll have to play alone.

 
Time, time, time.

 
Time, time, time.
 
is running out, out, out.

 
Dig in, hold on, cut costs, and wait for Barcelona --- server will margins will help them once they regain that momentum.

 
Readers should note that once again The Baron casts blame not at the source of the problem, but rather at anyplace else that he can. In this case the problem (falling stock prices) is not AMDs fault for being caught with its pants down, failing to supply the channel (due to binning/manufacturing problems or mobile targeting) or releasing an underperforming overpriced, environmentally hostile product, but rather, some one elses, specifically stock analysts.

 
Readers should note that once again The Baron casts blame not at the source of the problem, but rather at anyplace else that he can. In this case the problem (falling stock prices) is not AMDs fault for being caught with its pants down, failing to supply the channel (due to binning/manufacturing problems or mobile targeting) or releasing an underperforming overpriced, environmentally hostile product, but rather, some one elses, specifically stock analysts.
 
You noticed that too..... we should bookmark this post, and remember it for future reference.
 
Jack