Joey....AMD will likely be lower...maybe a new lows to 4-5ish. There is no winner to INTC's fall from grace, this is an industry wide issue. AMD's checkered past does not help here but they do have a big edge in valuation...P/S of under 1 is darn good for this industry but doesn't mean it can't go lower. INTC being the industry leader should have a slightly higher valuation but not 4-5X the competition,,... maybe 2x for examples sake.
Product wise I see more and more of a horse race going on....but I'm not an "expert" in that topic like some people here are, BUT I do know a thing or two <GGG>
I can tell you though, if INTC is caught tweaking the benchmarking programs to show faux P4 gains over AMD's it would be not so good for INTC fans. That type of stuff is just as bad as cooking the financial books... aka lying to the public & the Justice Dept as we know is out looking for such things these days. Anyone with more info on this please post it too me as I and my hungry bunch of lawyers find it very interesting....
So in a nut shell...don't go buy AMD just because I think INTC has more rough sledding ahead, buy the top players when they are cheap by historical valuations and AMD is a better Value here. That does not rule out a 50% drop for them as well. I'm not buying AMD yet, but will be tempting after new lows going into years end....and heck I could be wrong totally,,,,we'll see. The econ and cap. spending is going to make or break this industry over the next 6months. I don't see the consumer buying enough PC's for it to have a major material effect on rev growth or earnings for the majority of this sector.
...see you ask a nice question,
...you get a nice thought provoking answer :-)
The Nice Dr. Trash |
