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While we stare in horror at the global markets falling right through the floor, I thought I would post something a little more specific and, dare I say, off topic.

I have held AMD from about $6 down to its current low of $4. I'm averaging down here and there.

If AMD did everything wrong between 2006 and the start of 2008 (delayed, buggy chips, overpriced purchase of ATI, etc) it is now doing close to everything right.

On the graphics front, AMD has knocked NVIDIA (NVDA) onto the ropes. Seriously. They have released a string of graphics cards that have, on a price/performance level, made everybody all but stand up and applaud the former laggard. NVDA, which used to have 5x market cap, is now being forced to cut prices on an almost monthly basis to keep up with AMD/ATI's (the acronyms have been combined to DAAMIT by friends and foe alike) new products. AMD is even targeting 50% of the discrete graphics market which, just a year ago, would have been considered fantasy. Now, not so much. This quarter's earnings are going to be *very* interesting to see. For the non tech people out there, NVIDIA has long been the reining performance champion.

On the processor side, AMD is looking good. They are currently mass producing their Shanghai processor which will be released to vendors *this month*. That's ahead of schedule, IIRC. The processor will probably not unseat Intel's latest Nehalem offering but it will likely go a long ways to closing the gap. (not to mention Nehalem isn't due

A big X factor with AMD is their so-called Asset Smart strategy which involves some type of breakup that moves the hugely expensive fab plants to, potentially, a separate company. The current economy is no doubt proving to be problematic and may even unhinge the plan (who can get the billions needed to finance the purchase of a chip plant?) but.. nobody really knows what the plan is and the company has not indicated that anything is amiss.

Yes, the global economic situation is probably going to impact semiconductor sales. But the story here is one of market share. If AMD can truly wrest orders from Intel or NVIDIA then it is on the path to recovery.

My only main worry with AMD is its debt load. It spent an awful lot of money to acquire ATI and has suffered greatly at its own hands over the 06-08 period. But if there is a turnaround to happen, and I believe there is, it is starting now.

This is a dynamic company that is out-innovating competitors many times its size. While the ROA and other standard metrics of performance are lacking, to say the least, the "big picture" here points upward.