AMD posts first profit in 13 quarters

By on Jan 22, 2010 at 11:37 AM
General January 22, 2010

AMD Logo

It has been a long, and at times, ominous road for number-two chip maker AMD, however, we are happy to report that there is reason for the underdog to celebrate. After 13 consecutive quarters of operating in the red, AMD has reported a net income of $1.18 billion dollars for the fourth quarter of 2009. The announcement is largely due to a 28% growth in sales over the holiday season — fueled by the demand for new PC’s and netbooks — and a $1.25 billion lawsuit settlement from rival chip maker Intel. Sales from AMD’s graphics division lead the charge climbing 58% from the previous year, while processor sales also jumped 39% year-over-year. Even with all this good news AMD’s stock is trading lower, as analysts are uncertain that AMD can hit its revenue number for 2010 and/or gain market share from the juggernaut that is Intel.

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10 Comments

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  • SUGAR GROVE

    What? Intel gives them 1.25 billion and they net 1.18 billion? looks like a 70 milion dollar loss on the surface
    3.25 years in the red and still big chips to brag about.
    bye bye AMD

  • Champ

    It’s kind of sad that they’ve been doing so poorly. I’ve almost always used AMD and loved every one of them, performed as well as any Intel chip until Core 2 Duo came out. Now with i7 and whatnot, AMD’s going to have a lot of ground to cover. Hopefully they can really do some wonders by combining their chips and ATI.

  • Scott

    Looks like ATi was pulling in the majority of that money. Their GPUs have been fighting pretty well with nVidia. I’m an Intel guy myself, but I’d like to see AMD step up their game and get some good competition going. Otherwise, I have a feeling Intel will start to charge an even higher premium.

  • avinyc

    And yet the share prices are dropping because investors know Q1 and Q2 will not be profitable.

    Besides making better chips, Intel is investing more money into the U.S. economy and job market making them the better choice over AMD.

  • betchplz

    I like AMD. I hope they can get around Intel.

  • Peter

    They can’t go out of business. Intel would instantly slow down.

  • Dara

    Bah,

    AMD doesn’t necessarily need to catch up with Intel, here’s why:

    Nobody (disclaimer: in the foreseeable future) needs processors as fast as the i7 anywhere except at a desk, and that’s not the location computers are being bought for.

    Cell phones, tablets, and computing appliances like the PS3 are taking over the heavy lifting for most people.

    I think the reason is that secretly, 90% of people don’t need anything more powerful than a netbook except for HD video.

    I think AMD has made some smart moves and created a great video platform. They recently rebranded their ATI stickers for mainstream products to drop the model numbers and just tell the consumer what kind of video is possible.

    I think they really need to keep their eye on Nvidia and it’s Ion platform, but that seems to me to be close to a one size fits all situation. That may not be so bad though, Apple has made it work.

    • betchplz

      I agree, I don’t need the power of an i7. I’m on a 2yr old AMD dual core processor and I really don’t feel the need to upgrade, especially after I installed Win7 64. I will have to if I want to play a few games but even then I will be making the move up to a Phenom ($80).

      • betchplz

        Games meaning GTA’s latest, hardware intensive stuffs..

    • mingkee

      There’s no obvious different between Intel and AMD when watching youtube in your browser.

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