Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Mani1 who wrote (114992)	6/8/2000 4:48:00 PM
From: EricRR	Read Replies (1) of 1571976

I think the reason that AMD gets no respect is straight forward- Intel. Some believe that AMD just can't compete, while others just don't want to believe. Look at it this way. You're a fund manager and you own a lot of Intel. You think its a great company, but also think its PE is too high. You can't sell your holdings because you don't have the balls to swim upstream. The CPU market, of which intel holds overwhelming market share, is forcasted to grow at a 20% annual rate. Intels new "non-core" investments and aquisitions have yet to show any non equity related income. Some junior analyst comes up to you and says that AMD is executing very well, and has a product line that will be competitve for at least a few years. They give you earnings projections. They look conservative. But now when you add Intel's future share (not just in volume but in sales) of the processor market with AMD's future share, you get a number higher than 100%. So what do you do? -You cover your ass, and let someone else piss into the tent. PS- Tad did very well by picking AMD. And his "avoid" on Intel was a gutsy move. Did he request to change sectors? or was he reassigned?

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