Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Aaron Cooperband who wrote (4907)	1/31/1997 5:05:00 PM
From: arya khidayen	of 1577193

Can the NexGen acquisition earn more than $4.50 a share (or $5.80 a share using the $800M figure) for AMD? Your question is whether there can ever be enough earnings from the microprocessor division to pay for the acquisition of the chip designers, i.e. NEXGEN; I will go out on limb here and say unequivocally yes....sell 20million K5 & K6 during the next 12-18 months, with a gross margin of $70 each .....I will leave the math to you. Do you quesdtion AMD's capacity for that many chips? I have a small worry in this regard, but many other contributors on this thread could no doubt provide us with a better grasp of AMD's production abilities. arya@cnct.com.....Cyrix shareholder, soon-to-be AMD shareholder also.

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