AMD Predicted to go Bankrupt by 2020

AMD Predicted to go Bankrupt by 2020

| Source: latest world technology Author: Mark Campbell

AMD Predicted to go Bankrupt by 2020

AMD has been predicted to go Bankrupt by 2020, with it's last hopes being pegged on Zen and other potential technological innovations.

For years now AMD has been losing money, and right now AMD can do very little about that, with a smaller budget compared to it's main competitors Intel and Nvidia and on the CPU side is forced to use a larger, less cost effective manufacturing process while still having to produce cheaper chips chips than intel.

Analysts at Kerrisdale Capital Investments have predicted that AMD will file for bankruptcy in 2020, as in recent years AMD has had some very negative market trends, with sales decreasing and losses increasing. Here is a statement from KCI.

” We have identified a toxic combination of non-competitive product range, technological leaps competitors, several structural features, ineffective policies and deteriorating balance sheet. Despite some victories on the market, the time comes, and AMD will be unable to reach the level of profits in industries where technology leadership is crucial, not price . “

AMD has a chance to get back in the game next year, as they will be finally be able to move from their 28nm and 32nm processes, which are used to manufacture their current CPUs and GPUs, to the more affordable and more efficient 14nm process, making their chips cheaper to produce, while also giving some power and performance benefits.

On the CPU side Intel has had a lead in manufacturing process for years, using their 22nm process ever since Ivy bridge, which was released back in 2012. Being so far behind in terms of processing take has taken it's toll on AMD's CPU market share as they simply cannot compete with Intel in terms of power consumption and hasn't even tried to in the performance end, with their highest end CPU still using the Piledriver Architecture.

Zen is AMD's last chance to compete with Intel and be able to make the CPU divisions of the company turn a profit. Hopefully Zen will turn around their fortunes, but right now it is hard to know if it even can.

In the GPU market AMD really need to bring some new products to the market and soon, as right now Nvidia have the best performing hardware with better thermal performance and lower power consumption, leaving AMD in he dust in every way apart from pricing.

AMD produces some fantastic components for the money you spend on them, but that does not keep a company running for very long. The next few years will be very difficult for AMD, but this does not mean that they cannot succeed.

You can join the discussion on AMD's predicted bankruptcy on the OC3D Forums.

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