Scot,
You'll like this one - must read - some interesting new info - from Forbes
To entice you into reading it, here are some interesting snips --
o Sources close to AMD believe that any lead Intel might get by introducing 750- and 800-MHz versions of their Pentium III Coppermine chip would be temporary.
o Nevertheless, the company is enjoying an Athlon-inspired windfall and will handsomely beat all Wall Street expectations.
o Sources say that the demand for Athlons is strong enough to actually help the company's earnings per share go into the positive territory.
o In addition, the demand for cheaper K6-2 and K6-3 chips is also going through the roof, sources said.
o AMD had originally expected K6 prices to fall, but they have remained flat for much of the fourth quarter
o But this is not the only good news coming for AMD, which is just days away from disclosing a pact with Motorola (nyse: MOT).
o The deal with Motorola will help AMD re-deploy its Fab-25 in Austin, Tex., which AMD is looking to use to manufacture chipsets for Via Technologies, and also manufacture flash memory chips.
forbes.com _______________________
December 15, 1999
Can Intel really win the speed game?
By Om Malik
NEW YORK. 4:21 PM EST-Intel Corp. (nasdaq: INTC) may have an 800 megahertz version of its Pentium III Coppermine chip, but can it really stay ahead in the megahertz derby? Published reports say that Intel might introduce 750- and 800-MHz versions of its Coppermine chips later this month, way ahead of the originally slotted release date of January 2000.
Intel's stock has jumped on the news, closing up $6.50 to $78.94. Rival chipmaker AMD (nyse: AMD) closed down $0.50 a share to $27.13.
But there is more to this story than meets the eye. For example, Intel will provide samples of its high-speed chips only to its OEM partners, not ship the actual products in volume. And Intel does not really have a large defensible lead in the megahertz race. Sources close to AMD believe that any lead Intel might get by introducing 750- and 800-MHz versions of their Pentium III Coppermine chip would be temporary.
AMD is likely to introduce an 800-MHz version of its Athlon chip in the first week of January, and will also introduce a 900-MHz version of the chip later in the first quarter, perhaps as early as the second week of February. The 1-GHz version of Athlon will ship in June. An AMD spokesperson declined to comment on the timeline of its new product introduction.
Nevertheless, the company is enjoying an Athlon-inspired windfall and will handsomely beat all Wall Street expectations. Wall Street is expecting AMD to lose 7 cents a share according to analysts surveyed by Thomson Financial First Call. BancBoston Robertson Stephens semiconductor analyst Dan Niles says that the company may break even.
Sources say that the demand for Athlons is strong enough to actually help the company's earnings per share go into the positive territory. AMD hoped to sell 800,000 of these chips in the fourth quarter. AMD might surpass that target quite easily. In addition, the demand for cheaper K6-2 and K6-3 chips is also going through the roof, sources said.
AMD had originally expected K6 prices to fall, but they have remained flat for much of the fourth quarter, thanks in part to strong consumer PC demand. With the demand for flash memory also increasing, AMD could have one of its best quarters in years, analysts speculate. AMD is expected to have sales of around $834 million in the fourth quarter of 1999, according to BancBoston Robertson Stephens.
But this is not the only good news coming for AMD, which is just days away from disclosing a pact with Motorola (nyse: MOT). Sources familiar with the company say that Motorola's semiconductor products sector might add manufacturing capacity by taking a stake in AMD's Dresden, Germany facility. Forbes.com first reported the news of a possible deal in September.
AMD's Dresden operation uses 0.18-micron technology with copper cross connects that is licensed from Motorola. As a result it could be very easy for Motorola to start using up the idle capacity in Dresden rather quickly.
Motorola is feeling the capacity crunch in almost all of its product categories, led by the strong demand for chips that go into its cellular phone handsets and memory chips for the phone market.
<> The deal with Motorola will help AMD re-deploy its Fab-25 in Austin, Tex., which AMD is looking to use to manufacture chipsets for Via Technologies, and also manufacture flash memory chips. Flash memory sales could come in at around $248 million in the fourth quarter, according to BancBoston Robertson Stephens estimates.
Given these developments, it is quite possible that Intel's slight lead in the megahertz race will be momentary. AMD might actually be looking at better times ahead.
forbes.com _______________________
Regards,
Goutama |
