"They are going to miss Q2 guidance, and Q3 outlook will be grim, too."
Let's put it this way...AMD's Q2 and Q3 results, relative to INTC's will demonstrate growing strength....and, imo, AMD's Q2 will beat consensus estimate of $0.29, perhaps handily.
(Again, INTC's "scorched earth P4 pricing cuts of up to 60%" will no doubt impact margins in the desktop space, but fortunately for AMD, such negative impact in the desktop space will be mitigated or entirely offset by improving mobile and server mix. Unfortunately for INTC, they are going to suffer a huge financial hit as their profit margin had already fallen through the 50% floor.)
Furthermore, I'm certainly not convinced that these desperate price cuys by INTC will stem Revshare gains by AMD, In fact, you shouldn't be awfully surprised to see AMD Revshare climb to 20% in Q3 from its 17.3% at the end of Q1.
INTC's "inventory mess", as characterized by Hector, owing to INTC's size has created a major market problem. It remains to be seen just how much of the problem is company specific. I suspect that Q2 results will confirm that any "inventory mess" is highly INTC-specific. |
