
AMD’s stock plunges to biggest loss in over 12 years - baazaar
http://www.marketwatch.com/story/amds-stock-plunges-toward-biggest-loss-in-over-12-years-2017-05-02
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revelation
A clickbait headline if you have ever seen one. Sure, it's the biggest
percentage loss, but then of course AMD rose four fold in the last year or so.

AMD on May 3, 2016: 3.7

AMD on May 1, 2017: 13.6

AMD on close May 2, 2017: 10.32

It's still more than double, this is just the natural correction after all the
hype. And since they went 4x in a period of 1 year where .. nothing .. really
happened (until Ryzen very very recently) there was a lot of fluff.

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Cyph0n
I honestly regret not buying some AMD stock a few years back, even though I
was confident that it wouldn't be abandoned after the Mubadala acquisition.
Just like I regret not buying BTC when it was I first heard about it
(~$6/BTC). Oh well haha :P

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cortesoft
Well, obviously you remember the times you passed on buying something that
turned out to be worth a lot... there are probably lots of times you passed on
buying something that turned out to be worth nothing.

~~~
Cyph0n
Definitely! I'm completely fine with it though. It's not something I lose
sleep over, just a little itch is all.

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FridgeSeal
Correct me if I'm wrong here, but this is saying "their stock tanked, because
they had/are having a 'not perfect' quarter, and we based their value on them
having a perfect quarter".

That seems like they only have themselves to blame-to expect anyone to ever
have a 'perfect' quarter and to think nothing will go wrong at all, (and to
write off a quarter that is not-perfect-but-still-good) and to base all your
expectations on that seems incredibly, incredibly stupid.

Is that what's happening here? Or am I missing something?

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majewsky
Sounds like classical Planning Fallacy to me.

[https://en.wikipedia.org/wiki/Planning_fallacy](https://en.wikipedia.org/wiki/Planning_fallacy)

In a nutshell, the theory is that people tend to plan too optimistically
because they look at the (usually small) probability of each problem, but fail
to consider the much larger probability of there being problems at all.

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Lewton
..... After having gone up 400% in a year

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nodejscloud
I'm tempted to buy some AMD now after this gigantic one day plummet. While I'm
not sure AMD will ever be able to compete with Intel in the enterprise cpu
market (cloud providers), NVIDIA and GPUs are looking like a solid core
business for them.

Everybody keeps on hyping and saying Ryzen, but again... I am very skeptical
major enterprises will make the switch from Intel.

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ReligiousFlames
(I have dyslexia, and originally read different companies.) Dont do it. It
would be a risky, short-term strat. NVIDIA is the future, not AMD/ATI, at
least right now. The move seems like an emotional market move as a reaction to
institutional-investor liquidity event in-touch with future value. AI is going
to be a trillion dollar business and will consume a huge swath of Tesla GPUs,
and will need zillions of them to deliver pervasive value at scale. That is,
before specialized AI accelerator ASIC and FPGA (combined with improved energy
efficiency across the stack (ram, compute, networking and storage) and many,
many cores) solutions are optimized to the various problem domains... then
exit NVIDIA before that happens. AMD/ATI would be wise to pivot into going all
in on AI acceleration, and that would be possibly GPU-killing for that market
if GPU product evolution doesn't keep up (doubtful it would happen but at
least AMD would have a stronger chance of survival.)

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brokenmachine
What industries is AI expected to be so useful in, and what for?

Serious question. I'm interested to learn more.

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Lewton
I think the main one that people are banking on is self driving cars. Whether
it'll get here in 2 years, or 10 years. As soon as it's production ready,
entire industries will be replaced

~~~
brokenmachine
Are there any other industries where AI is expected to be big?

I'm pretty bearish on self-driving cars.

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monocasa
So, now's the time to buy?

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sp332
Rolland's advice was neutral (neither buy nor sell) but his price target was
higher than it is currently, so it might be good to buy. On the other hand,
Chin's rating is "sell" and his target price is quite a bit below where it is
now. I guess it depends on how you think they will do with Vega.

