Is Advanced Micro Devices about to go belly up? That s a possibility suggested by some analysts following the Sunnyvale chipmaker s recent CEO change and lackluster quarterly financial report on Thursday, when it announced it is cutting 7 percent of its workforce.
AMD is now at a tipping point, warned Bernstein Research analysts in a note to their clients Friday., adding, it will not take much at this point to push them over the edge given the company would now seem to have pulled most of the levers available to them to stay afloat.
We cannot help but question the intermediate-term viability of AMD s client PC and server processor business, concluded Craig Berger of Hedgeye Semiconductors. AMD has chopped its operating expense spending in half in just five years! That cannot bode well for future product quality…
We worry another staff cut could prove disruptive given the need to innovate on a broadening product roadmap, wrote Canaccord Genuity analyst Matthew Ramsey, adding, we now feel required to wait for tangible signs of core business stability before recommending AMD shares.
Photo by Ben Margo, Associated Press
