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Should Investors Dump AMD?
If you have any old AMD shares lying around you might like to sell them as fast as you can, according to the bean counters at Goldman Sachs.
Despite the fact that the company is doing rather well, and its share price is has gone up rapidly over recent months, Goldman Sach analysts claim that the writing is on the wall for AMD. It thinks that AMD shares will be worth just $2.50 soon. The stock’s 50-day moving average is currently $2.98.
The company said that while AMD could clean up in the gaming market even if you take those figures into account the stock is trading at 22 times its 2014 CY EPS estimate. In other words the company’s core PC business is still shagged and still will generate 45 per cent of the company’s 2013 revenue.
“We therefore believe this recent move in the stock is just the latest in a long history of unsustainable rallies, and we are downgrading the stock to Sell. We believe the current multiple is unjustified for any company with such significant exposure to the secularly declining PC market,” the firm’s analyst wrote.
Analysts at Sanford C. Bernstein think that the share price will settle on $2.00 and FBR Capital Markets thinks $3.00. In other words if you want to know what is really happening at AMD you might as well ask the cat, than any Wall Street expert.
Intel’s Pentium Getting Updated
Intel is going to update its desktop Pentium family with several slightly faster Ivy Bridge-based processors.
According to CPU World the chips should hit the shops in the second quarter of 2013 which is a quarter after January’s refresh of budget desktop families, and one quarter before the launch of Haswell. The new chips have the original titles of Pentium G2030, G2030T, G2120T and G2140. They will have two cores, but lack Hyper-Threading technology, and can run two threads before getting all confused.
Both the G2000 and G2100 series CPUs support only basic features, like Intel 64 and Virtualization. They do integrate HD graphics which are clocked at 650 MHz and dual-channel memory controller, that supports DDR3-1333 on the G2030 and the G2030T, and up to DDR3-1600 on the G2120T and the G2140.
Pentium G2030T and G2120T are low-power models, replacing G2020T and G2100T but are clocked 100 MHz higher, that is at 2.6GHz and 2.7GHz respectively. However they still fit into 35 Watt thermal envelope. Pentium G2030 and G2140 mainstream microprocessors will be faster than “T” SKUs, and they will have 57 per cent higher TDP. Intel expects these to replace the G2020 and G2130 SKUs. The G2030 will run at 3 GHz. The G2140 will operate at 3.3 GHz. No word on prices yet.
Ivy Bridge E Delayed Until Fall
y Bridge E, Intel’s ultra-high end chip that is set to replace the Core i7 3970X, has been delayed. It doesn’t look like it was anything major. Our sources tell us that the decision was made by Intel server guys who did not want to launch this chip in Q3 as originally indented.
Since Q3 starts in July, a relatively slow month for IT, the normal time to launch products is late August or September, but at this time there is no confirmation that this will happen at this time.
Sandy Bridge E, or Core i7 3960X, was launched in Q4 2011, November 14th to be precise. This can give you a clue on when to expect the successor.
Originally Ivy Bridge E was supposed to launch in Q3, one quarter after the launch of quad-core Desktop Haswell processors. Ivy Bridge E works in X79 motherboards but we do expect that a few key motherboard vendors will have their newer versions ready for the launch of the new $999 flagship processor.
If Intel continues at this pace, it will take quite a while before we see Haswell E in action.
AMD Goes Richland
There have been more than enough leaks dealing with Richland, AMD’s successor to the Trinity powered Virgo platform, and we even had a chance to see some leaks regarding its successor, codenamed Kaveri. As you may already know, Richland is planned to last through 2013 and it is clear that this is very important chip for AMD.
Based on the Piledriver architecture and built using 32nm technology, Richland will feature an integrated GPU that will be upgraded to Radeon HD 8000 series, a generation ahead of Trinity. As you know, there has been a lot of leaks regarding the Richland parts and the quad-core A10-6800K with Radeon HD 8670D graphics is expected to pack quite a punch. Best of all, Richland will still use the same FM2 socket.
According to our sources, the NDA will be lifted on 12th of March, 8am EST, and we are sure that we will see at least a couple of reviews as well as some additional info regarding the price and the availability date.
IBM Moves Into Oracle And HP Turf
Big Blue wants to take on competitors such as Oracle and Hewlett Packard by offering a cheap and cheerful Power Systems server and storage product range.
Rod Adkins, a Senior Vice President in IBM’s Systems & Technology Group said the company was was rolling out new servers based on its Power architecture with the Power Express 710 starting at $5,947. He said that the 710 is competitively priced to commodity hardware from Oracle and HP.
Adkins added that IBM is expanding its Power and Storage Systems business into SMB and growth markets. The product launches on Tuesday. IBM said it will start delivering by February 20.
AMD Releases Vishera
Although it was detailed back in August last year, AMD has just now officially released its new “affordable” Vishera based FX-4130 quad-core socket AM3+ CPU.
The new CPU is part of AMD’s 4100-series and is based on Vishera core design with four Piledriver cores. It works at 3.8GHz base clock and can “turbo” up to 3.9GHz. It packs 4MB of L2 and 4MB of L3 cache and has a 125W TDP.
According to the slide over at Xbitlabs.com, the FX-4130 replaces the FX-4100 with the same US $101 price but should provide between 3 and 9 percent more performance.
As things get better with Globalfoundries and their 32nm process technology, AMD is expected to introduce new models based on cut-down versions of Vishera, according to the report.
AMD’s Roadmap Leaked
According to the latest AMD desktop roadmap, published by DonanimHaber, the Steamroller architecture could be delayed, which means Piledriver cores will power AMD’s third-generation APUs.
So what does this mean for consumers? Well, Richland APUs might not be quite as good as expected. AMD could optimize the x86 cores and go for more powerful graphics, but it’s hard to get excited about the next generation.
Vishera parts will also stick to Piledriver cores, backed by discreet Radeon 7xxx and 8xxx series graphics. However, we will see a new architecture in the low end. Kabini is apparently on track to launch next year, with Jaguar cores, refreshed graphics and an all new system-on-chip version, with an integrated on-chip Fusion controller hub (FCH).
What’s more, AMD will also offer quad-core Kabini parts, and who could say no to a dirt cheap E-series APU with four cores, good graphics and a ridiculous TDP?
AMD Makes More Cuts
There have been some rumors that AMD plans to drop prices on its older generation APUs as well as some AM3 Athlon II CPUs and as of yesterday, the new price list confirmed those cuts. Unfortunately the price cuts are not that impressive on the FM1 side but some AM3 Athlon II CPUs have seen a price reduction of over 30 percent.
The full list includes a total of six A-Series APUs and twelve AM3 Athlon II CPUs. The most impressive price cut in the A-Series was on the A4-3300 APU for 21.7 percent, or from US $46 down to US $36. The flagship A8-3870K got cut down by 9.9 percent while A6-3670K was cut down by far less impressive 3.7 percent.
The most impressive price cuts on the AM3 Athlon II side is on the Athlon II X4 640 and the Athlon II X2 265. The Athlon II X4 640 got cut down from US $98 to US $67, or 31.6 percent, while Athlon II X2 265 got cut down from US $69 to US $48, or 30.4 percent.
Two Athlon II CPUs, the X3 445 and the X4 638, were removed from the price list as they were most likely discontinued.
You can check out the full list and price cuts over at CPU-World.com.
AMD Goes Piledriver
AMD has released its Piledriver desktop
processors codenamed Vishera.
AMD showed off Vishera at IDF last month, an overclocked chip running at 5GHz. Now the company has taken the wraps off its eight-core Vishera chip, a processor that it hopes will finally bury memories of its disappointing Bulldozer Zambezi chip.
AMD’s Vishera processors will continue to use Socket AM3+, meaning it is a drop-in upgrade for those customers lumbered with Zambezi processors.
The firm announcing four models all branded with the FX moniker. The low-end Vishera chip is the quad-core FX-4300 clocked at 3.8GHz boosted up to 4.0GHz, with 4MB of Level 3 cache.
The firm has kept feature parity throughout its Vishera FX range aside from core count and total Level 3 cache. Therefore AMD’s six-core FX-6300 still sports the same 1MB of Level 2 cache per core but has a total Level 3 cache of 8MB and is clocked at 3.5GHz that can be boosted up to 4.1GHz.
AMD’s top two Vishera parts, the FX-8320 and FX-8350 sport eight cores and have 8MB of Level 3 cache. The difference between the two chips is their clock frequencies, with the FX-8320 running at 3.5GHz and boosted to 4.0GHz while the FX-8350 is clocked at 4.0GHz and is boosted to 4.2GHz.
The firm’s decision to clock its FX-8320 and FX-8350 so closely is largely academic, as all Vishera chips feature an unlocked multiplier. AMD even plays up the overclockability of Vishera and touts 5GHz as being reachable with water cooling. Insiders have even said it can reach 5GHz with strong air cooling.
As for AMD’s Piledriver architecture, the firm claims it offers improved branch prediction and improvements to Level 2 cache efficiency and scheduling. Overall the company is sticking to its longstanding line that Vishera is a 15 percent performance increase over Bulldozer, and while that might well be true, Bulldozer was so far behind its competition in single-threaded performance that a 15 percent gain is needed simply to achieve parity, let alone a lead.
AMD Makes Cuts
AMD has cut its third quarter revenue and gross margin forecasts citing weak demand.
AMD’s lacklustre Bulldozer processor line has left the firm desperately trying to compete with Intel in the desktop market while its more impressive accelerated processor unit (APU) range has been rebuffed by Intel’s multi-million dollar ultrabook marketing push. Now AMD has revised down its estimate of third quarter revenues, which it says will be around 10 percent lower than the previous quarter.
Even more worrying for AMD is its lower forecast for gross margin, the difference between selling an item and the cost to make it, down from 44 percent to 31 percent. Effectively AMD said its cost of doing business has risen considerably higher, although it laid most of the blame on an $100m inventory writedown.
AMD couldn’t avoid admitting the blindingly obvious and said that its writedown of inventory was due to “lower anticipated future demand for certain products”. The firm has suffered through a disappointing 2012, and earlier this year it announced a $580m loss back in April.