rather WHINE ON AND ON about Intel rather than face the fact that AMD is in the toilet
To be fair, I don't think AMD shareholders (like c'est moi) have been particularly vocal critics of Intel. Definitely I am in a state of shock and trying to evaluate the situation objectively.
For one, the strong belief is that AMD's business model is supposedly profitable at much lower ASPs than Intels. But, if this were true, then with falling ASPs, Intel should be first to cross into a loss, then followed by AMD if ASPs keep sliding. So, why is it that Intel has not warned of a loss in Q3 but AMD has?
For another, a huge part of the fear is that Intel is going to so aggressively price the P4 that AMD's current offerings will have to be practically given away, since for all intents and purposes, the current offerings compete with P3, not P4. But I thought desktop Palomino was soon to be announced, and with an Athlon 4 name, it should compete with the P4 in the minds of atleast 80% of the consuming population. So, how come no one has uttered Desktop Palomino recently?
Finally, there is the question of valuation - this puppy has a market cap today of $5B, cash of $1B, and current assets (including cash) of $2.5B. When I went long on AMD, it was under the thinking that even if the company can make a razor thin profit, it will continue to get stronger, whereas, given the current ASPs, Intel should become weaker and weaker. Instead, it appears the opposite is happening - why?
As Mani said, the many posts on this thread devoted to extending the English vocabulary in humourous ways is getting in the way of answering some of these questions.
Milan |
