The Dark Satanic Rumour Mill has manufactured a hell on earth yarn which claims that AMD is about to announce it’s losing even more money than it thought.
Wall Street analyst Craig Berger, who does the sums for FBR Capital Markets, told IB Times that AMD could guide revenues to fall between four and eight percent in the first part of the year.
AMD will make only $1.62 billion in revenues, which is slightly better than the Street’s $1.60 billion, but still grim.
Berger said that although hard disk drive (HDD) production appears to be recovering faster than initially feared, AMD has been hit by the disruption, and it could hit CPU demand until further HDD productivity happens.
What will tell the full story is when AMD reveals its Llano yields, 28nm ramp timing, and server uptake. He thinks that then gross margins will likely be guided down sequentially.
Berger said that the firm’s strategy is in limbo as CEO Read takes over and assesses the firm’s future in a possible Windows on ARM.
He said that the stock trades very inexpensively but is highly volatile and risky.