AMD Has Fallen and It Can't Get Up

Updated from 9:45 a.m. EST

Perpetual underdog AMD (AMD Quote) is getting precious little sympathy these days.

Reeling from a steep industry slowdown and price bullying from Intel (INTC Quote), the microprocessor outfit unveiled a plan to bolster its lagging business in early November. It's already winning some decent feedback on its new generation of Hammer chips to be introduced next year. Yet analysts remain leery of the stock.

The analysts point to continuing losses in market share, which will have worsened by the time the delayed Hammer chips hit the shelves, as well as the company's rich history of marketing and manufacturing missteps. Then there are the still-considerable balance sheet concerns. Before the layoff announcement, some analysts speculated the company had enough money to sustain it only for another four or five quarters. ...