Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (68765)	8/13/1999 5:46:00 PM
From: Dan3	Read Replies (1) of 1573057

Re: Intel closed at ANOTHER ALL TIME HIGH TODAY The intel party isn't over yet, 2 quarters to go! messages.yahoo.com =================================================== We're about to see Intel have a profitable quarter similar to AMD's last one. (AMD made money last quarter only because it sold off Vantis) Here's my reasoning - Intel missed its profit numbers by a small amount last quarter, which always looks very bad. In that same period, they had a big jump in unrealized gains - that they could easily instead have "realized", and made their numbers for the quarter. The cumulative price cuts we're seeing from intel should drop their ASPs by about $75, costing them roughly $1.5 billion - which is most of a quarter's profits. I expect the strategy is to "realize" these investment earnings as necessary to maintain what appears to be a successful semiconductor business in the face of AMDs new competition. Intel is sitting on nearly $2 billion in unrealized earnings right now. Intel can afford 1 bad quarter, and one not so great quarter - and it will appear that everything's fine. I'm pretty sure this is why they are confidently predicting a good next 2 quarters. So intel will announce 2 big profit quarters to much fanfare, and unless you want to go nosing around the balance sheets and pick arguments, no one will care where those profits really came from (the semi company or the mutual fund). ===================================================== Sound about right to you?

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