bit about intel distancing itself from pure GHz is interesting
08:26am EST 5-Nov-01 Needham & Co. (Dan K. Scovel 212-705-0322) AMD
Semiconductor Industry; Chip Shot
November 5, 2001 Dan K. Scovel 212-705-0322
dscovel@needhamco.com
Semiconductor Industry: Chip Shots
Advanced Micro Devices (AMD, $12.25 +0.75, Buy, Target Price $18)
4Q: ($0.29) on $766 mil. 2001: ($0.43) on $3.7 bil. 2002: ($0.17) on $3.6
bil. 2003: $0.84 on $4.8 bil.
Faster Processor, Smaller Flash: AMD introduced its newest and fastest
microprocessor for desktop PC applications, the AthlonXP-1900+ for $269.
Systems from MicronPC now and Compaq (CPQ, $9.11, Hold), Fujitsu, and
Hewlett-Packard (HWP, $16.92, NR) soon. We understand this to be a 1.6GHz
device advertised to offer performance roughly something in excess of a
competitive Intel (INTC, $26.30, Hold) Pentium 4 at 1.9GHz. Intel's fastest
part currently runs at 2GHz. AMD's most recent high-end offering was a -1800+
running at approximately 1.5GHz. Separately, AMD announced today that it has
begun shipping flash memory manufactured in more advanced and cost effective
0.17-micron process technology. Competitor Intel recently announced plans for
0.13-micron-based flash memory products.
We consider these announcements business as usual, and note that AMD's
offerings remain competitive with Intel-despite the weak business environment
and lack of profitability.
Also, we believe AMD's True Performance Initiative, or TPI, to reflect
approximate competitive performance in the device part number (the '-1900+,' for
example) is more conservative and realistic than we originally perceived. In
fact, Intel has recently begun to distance itself from raw gigahertz speed
ratings within the technical community as we believe it pre-positions
performance characterizations associated with architectural changes in its new
64-bit Itanium family of processors.
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