Now worth less than it paid for ATI last year.
AMD is having a hard time of it lately. The launch of Spider and Phenom now past, both have turned out to be rather damp squibs and the 3800-series, which is a vast improvement on the 2900, has been rather overshadowed by nVidia’s 8800 GT. The latest reports indicate that AMD’s shareholders share similar sentiments, as prices have now dropped to their lowest point in four years, putting the companies value at $5 billion, a shocking $400 million less than the cost of AMD buying ATI last year.
Given that both Intel’s QX6700 and nVidia’s 8800 GTX, products launched over a year ago, still outperform the best AMD can offer it’s hardly surprising investors are less than happy. In monetary terms, nVidia and Intel are now worth about $19 billion and $132 billion respectively, or about four and 32 times as much as their rival.
As much as it may sound like I’m giving AMD a bit of a ribbing here, that isn’t my intention. The best situation for everyone is for AMD to pull itself around and churn out another Athlon 64; and let us not forget the days of the GeForce FX when no-one in their right mind would pick anything but ATI. Quite what the future holds for AMD remains to be seen, but something needs to be done to turn the company’s ailing fortunes around .