3 Troubling Charts AMD Investors Need To See презентация

Things aren’t going well for AMD Revenue is falling, losses are piling up, and the PC market is the weakest it’s been in years Here are three charts that AMD investors need to see

AMD’s Book Value

A precarious situation AMD’s design wins for the PlayStation 4 and Xbox One, both launched in late 2013, gave the company a big boost. This counteracted the deterioration of the CPU business for a while, and AMD was profitable in 2013. Toward the end of 2014, losses in the CPU and GPU segment drove AMD into the red, eating away at its book value. Book value turned negative in the second quarter of 2015. Along with $2 billion in debt and a chronically negative free cash flow, AMD’s financial position is deteriorating rapidly.

Discrete GPU Unit Market Share

Losing ground to NVIDIA AMD has been in second place behind NVIDIA for quite some time, unable to break past a 40% share of the market. The past three quarters have been a disaster for AMD. NVIDIA launched its high-end Maxwell GPUs last September, forcing AMD to slash prices. It wasn’t until June of this year that AMD fought back, but it may not change things that much. AMD’s high-end Fury X graphics card came up short of NVIDIA’s identically-priced flagship card in terms of performance. With AMD unable to disrupt the GPU market with its latest launch, winning back market share from NVIDIA will be tough.

Research & Development Spending

Being vastly outspent With AMD’s revenue declining, research and development costs have been slashed. But AMD competes with Intel in the CPU market and NVIDIA in the GPU market, both of which now outspend AMD on R&D. In 2014, Intel spent $11.5 billion on R&D, while NVIDIA spent $1.36 billion. AMD spent just $1.07 billion. AMD is banking on its new processor core, Zen, to compete with Intel next year. But the company is at a massive disadvantage when it comes to R&D, and with its finances quickly deteriorating, catching up to Intel won’t be easy.

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