SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: xun who wrote (113546)5/31/2000 10:45:00 AM
From: EricRR  Read Replies (2) of 1575610
 
Panic-

Good analysis. There's still lots of money to be made in the CPU business. All these comunication infrastructure wanabees are in for a rude surprise. Yes their market is taking off, but what are the entry costs for competitors? not high enough to keep everyone and his brother form rushing in.

It my book it's just common sense. If company "A" is making fat profits, he'd better hope he's in an industry where it takes years, (how long to build a fab? design a cpu?) and billions, to enter. Pharmaceutical is another. Owning a standard (like microsoft) is another. This is the fundamental flaw with most internet stocks. The barrier to entry is just too low to protect those fat margins they're counting on to justify their valuations.

Jerry is right about real men having Fabs.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News