It may be too late, but AMD (NYSE: AMD) is coming out with a product that just might do well. The company will put two of its most powerful chips on one graphics card.
According to The Wall Street Journal, "The company, which has fallen behind Nvidia (NASDAQ: NVDA) lately in high-end personal-computer graphics, says a series of benchmark tests suggest the new ATI Radeon HD 3870 X2 card is the clear speed leader." Of course Nvidia is very likely to come to market with a similar product very soon.
AMD has not had much product success. Its new flagship, the Barcelona chip, was late to market and underpowered. It was set to go up against offerings from larger rival Intel (NASDAQ: INTC). There is no evidence so far that it has picked up any market share from the new product.
Nvidia is also no pushover as a competitor. Its successes have moved its market cap to $14 billion, and it trades at 3.7x sales. AMD's market cap is $4.1 billion and it trades at .7x sales. Nvidia's graphics chips are currently considered state-of-the-art.
A nice press release from AMD. A new product. Hope of better sales and revenue.
Maybe.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
1-28-2008 @ 11:47AM
Gumby said...
Doug
AMD finally get competitive?? Intel had been keeping AMD under the thumb for eons and eons . Remember way back iin the nineties when AMD finally won the rights to make 32 bit chips after years and years of court sessions. AMD spent precious captial fighting Intel in courts instead building more Fabs. Intel piled up billions in profits during the court years and that was what got Intel ahead if not permanently. Plus, Intel is being accused of telling vendors not to buy AMD chips all over the world. AMD is now back in courts and spending precious captial all over again. You tell me who is competitive ? People who choose AMD chips are competitive. Check under your computer and see which Intel or AMD you use. If you see Intel, you are not competitive.