AMD (AMD) was the 8th largest chip maker in 2006, up from 15th place in 2005, according to research firm iSuppli. Part of this is due to its purchase of ATI. AMD also took share from Intel (INTC), but the larger company kept its spot as the No.1 company in the industry followed by Samsung, Texas Instruments (TXN), Toshiba, and ST Micro (STM).
AMD investors wish the company was still in 15th place. It had to give up a large portion of its operating margin to get sales away from Intel.
Just imagine. When iSuppli released its figures for 2005, AMD was not only in 15th place among chip companies but its stock was at $36. Now, its has moved up in the rankings and its shares trade at $13.93.
Sometimes it is better to be smaller.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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