Analysts predict AMD bankruptcy
It is not a secret that AMD is in a deep crisis – the company has not had the CPU performance leadership in nearly a decade, its chips do not sell well, and the only department that is doing relatively well is the graphics department of the company, which AMD acquired in 2006 by purchasing ATI Technologies. Even then the latest news is that AMD has lost graphics market share in the past few months.
These are the exact reasons why analysts from Kerrisdale Capital Investment believe that AMD will go bankrupt by year 2020. Due to low income AMD is forced to cut spending, which results in key people leaving the company, lower development budgets, simpler and slower products and more, which leads to even lower income. In addition AMD has not succeeded in penetrating the mobile gadgets market and its virtual reality products will not bring money in the short run. What’s even worse is that the contracts AMD signed for delivering chips for gaming consoles will not bring a lot of money. The company’s budget for research and development is also just one-tenth of what Intel, for example, spends on building better chips. Things will only get worse this fall when Intel launches its new Skylake generation and AMD has nothing to offer. So how can a company survive in such conditions?
We don’t have a clear answer to this question but we do hope that the new AMD Fiji architecture as well as the upcoming AMD Zen processors will bring better days to the US company. After all AMD creates some competition on the CPU and GPU markets and with time passing by has become a trademark company when it comes to PC processors. It will be a sad story to see AMD disappear, don’t you think?