ExtremeTech wrote an article about AMD's financial situation, here's a snip:
However, thornier issues remain, including improving AMD's pricing and revenue generation, its marketing, and perhaps the biggest issue, designing and manufacturing a better product.
The problem is a complex one, analysts say: AMD needs profits to secure financing to build new fabs, but it lacks a truly competitive architecture to command premium revenues. Cutting prices secures market share, but at a potentially long-term cost.
AMD rose to its current position upon the shoulders of the Athlon XP and Athlon 64 processors, enjoying a technological advantage over rival Intel. That in turn forced Intel into a revamp of its own product line, producing the Core 2 Duo, which tests show generally outperforms AMD's own dual-core chip, the Athlon 64 X2.