Pravin:
"Well, LSI came in with 3 cents and trades for $19, and they expect a loss of 7 cents for Q2. Sure wish AMD could get that kind of respect."
Yeah...Just not too many semi's that are trading below 100 times there Q1 earnings...It seems that the idea "if times are desparate at INTC, then so too must they be at AMD" is entrenched in about 20 years of history and is therefore difficult to jettison...What is not clearly understood by most is that AMD now possesses a leading edge fab in Dresden and now hosts leading edge products in both the flash and microprocessor segments and has been highly profitable 6 quarters running...Most importantly, what is not factored into AMD's current price is AMD's leadership in the high end of the microprocessor space with its proven and ever evolving, almost flawlessly, Athy while its major competitor with its "new" as opposed to "proven" P4 continues to spin wheels at the starting line...No more can INTC strip down its top end processor, and not only maintain its unchallenged top position but at the same time position the stripped down version as a value product, an exceedingly successful tactic in the past, whenever AMD has gotten too pesky...No longer indeed as times have changed with AMD's Athy...In fact it would seem that INTC's P4 might have to concede the top end to AMD and ultimately have to position their P4 as their value microprocessor, if current panicky P4 pricing write downs are indicative of the future...Yeppers, what we have here are two companies headed in dianmetrically opposite directions...INTC has to revisit its low of $22.50 this quarter and unfortunately for AMD which should not be trading one penny under $40 based upon comparative financial benchmarks of the past year, they'll probably drag anchor in such a stormy environment, but I would suspect that AMD will crossover once again fairly soon and perhaps never look back...
The ignition point for AMD's thrust forward may well be the introduction of the mobile pony if it lives anywhere near up to Mr. Sanders' assertions in the latest conference call...but in the meantime, until INTC finds a new bottom, AMD price appreciation is likely to be a tad sluggish!!! |
