Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

AMD: IPO hopes on the rise


? Ebbers verdict |

Main

| News Corp. buying MySpace: Native Internet Media Taking Off ?

July 14, 2005

AMD: IPO hopes on the rise

Steve Rosenbush

AMD posted a surprisingly strong earnings report this morning. The key is that the company actually had earnings. It was expected to post a loss, but strong demand for PC chips saved the day.

That report sparked a strong rally in computer chips today. And it has bolstered confidence that AMD will be able to successfully spin off its flash memory unit, known as Spansion. The business, saddled with falling prices and low margins, wasn't necessarily destined for IPO greatness. But the company's strong results have generated some respect among investors, who are more likely to take management's optimism about the memory business seriously. A new generation of flash memory products is designed to appeal to the cell phone market. In theory, there's no reason why the wireless sector, which is driving a turnaround in processors for wireless devices, can't provide a market for flash memory devices. But the products must be strong enough to resist commodification, at least for a little while.

If AMD can get the products right, Spansion could follow in the path of Freescale. Motorola spun off the Freescale wirless chip business in an IPO about a year ago, and the price of the stock has nearly doubled again.

11:43 AM

M&A

TrackBack URL for this entry:

http://blogs.businessweek.com/mt/mt-tb.cgi/


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus