AMD gets unjustified kicking in share goolies
Yet many see bright times ahead...
The failure of AMD, or perhaps the success of Intel, in winning the contract to power X-Box futurology dented the shares of the Athlon manufacturer yesterday, but many analysts are reporting that Jerry Sanders' firm will make a big profit next year. The next financial quarter AMD will report will be the second consecutive quarter in a row where the firm made a clear profit and that will make its yearly estimate on Wall Street positive, rather than negative, for as many years as there are letters in the word yonks. Respected business journal The Wall Street Journal does a weekly summary of company share prices and according to its latest take, AMD is performing rather strongly, with many predicting much higher dividends for the next financial year. However, analysts on Wall Street yesterday all shook their heads glumly as they raked over the fact that AMD had lost the battle for the X-Box to its much bigger rival Intel, even though any product coming out of Redmond is quite a fair way off. Pension holders in AMD's stocks and shares have complained in the past because of its poor performance of yore. And if you think AMD is competing against Intel, have another think. Intel's microprocessors are obviously far less of a priority than it being a building block company, as witnessed by the amount of money it has spent in becoming that over the last eighteen months. (See Intel Capital). Although AMD's share price fell to $48, a drop of $3.5 on the day but opened up $2 when trading started. Its 52 week high was $60 on March 9th last, and the lowest was $14.5625 on April 14th last year. Even though most by then had realised its Athlon microprocessor was in with a fighting chance with Intel's processor technology, AMD's share price bumbled around at $16 for months. ®
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