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Has AMD reached its peak?
AMD yesterday issued a profit warning, cautioning investors that sales might be good but prices are under severe pressure.
The Opteron chip might be selling nicely, but the desktop and laptop business is suffering from declining prices, the chipmaker said.
AMD for the past years has been chipping away at Intel's market share, forcing its arch rival to revamp its product lines and prepare a corporate restructuring.
But with Intel's product line shaping up, the question remains if AMD can maintain its technology lead. The company furthermore carries an enormous load of debt. It simply can't afford to loose some of the territory that it conquered in the past.
The easy way out for AMD is still an acquisition – where the company gets acquired by a more financially solid company.
July 7, 2006 at 11:03 PM | Permalink
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