AMD (AMD) has already fallen as much as almost any stock traded on the NYSE during 2007. Now it has been downgraded to "sell" at Banc of America. According to MarketWatch the investment bank wrote "Irrespective of whether AMD will be able to deliver on its promise to ramp the much-delayed Barcelona platform in volumes by the first or second quarters of 2008, we believe Barcelona will do very little to stem the share losses AMD will likely witness in servers and desktops vs. Intel’s more competitive line-up. Furthermore, we believe that AMD’s cost structure will be further pressured by higher depreciation and higher material costs associated with the ramp of quad core parts in 2008."
With a string of operating losses and $5.1 billion in debt it is imperative that the company change its CEO and cut costs. Perhaps Dubai’s Mubadala Development Co. which just put $622 million into AMD can make that argument to the board.
Douglas A. McIntyre
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