No more love for AMD as accounts turn BloodRed!

AMD (NYSE: AMD) reported fourth quarter 2007 revenue of $1.770 billion, an 8 percent increase compared to the third quarter of 2007 and flat compared to the fourth quarter of 2006.

In the fourth quarter of 2007, AMD reported a net loss of $1.772 billion, or $3.06 per share, and an operating loss of $1.678 billion. Fourth quarter net loss included charges of $1.675 billion, or $2.89 per share, of which $1.669 billion were operating charges. The non-cash portion of the fourth quarter charges was $1.606 billion. In the third quarter of 2007, AMD reported revenue of $1.632 billion, a net loss of $396 million, and an operating loss of $226 million. In the fourth quarter of 2006, AMD reported revenue of $1.773 billion, a net loss $576 million, and an operating loss of $529 million.

Our analysis is that a bear flag is forming and you can get it cheaper in a few days. However we believe the next quarter will be very important for AMD to prove that they can make a comeback after writing off a lot of shallow value for the ATI deal, and we believe the worst is behind them if they can get back on track. They have the technology, they have the backing in the community, however they need to solve things internally.