back to article AMD borrows $300m to fill war chest

Advanced Micro Devices is wading into the debt markets to raise money for a whole bunch of things it needs to get done. The chip maker designer and peddler said in a statement that it would be making a private offering of $300m in senior notes due in 2022, and that it had a number of potential uses for the funds. Four, to be …

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FAIL

Applied Micro is already public and already sells embedded processors and communications chips that are doing somewhere around $230m a year in revenue. The company has $96.1m in the bank right now, too, and a market cap that is around $366m as El Reg goes to press.

So a company with money in the bank and a fairly decent and stable revenue stream is valued at $0.5bn, while a company with no stable revenue stream, and no actual product, apart from filling the buzzword bingo of the month, is valued at over $100bn?

How does this make sense?

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It doesn't make sense. But our financial markets are obsessed with immediate payout based on changes in value, rather than actual value.

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Devil

AMD has never made sense

However, since AMD is such a political entity, it might just be a political game. I don't know about the situation now, but many years ago they withheld bad financial news because they didn't want to hurt a Republican friend who was running for president at the time. As soon as the election was over, they suddenly announced the layoffs. Now the political situation is reversed, so I wouldn't be at all surprised if they are playing the opposite game.

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