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.
Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.76-1.1%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Charles R who wrote (3592)8/4/2000 1:39:34 AM
From: PetzRead Replies (1) of 275872
 
Chuck, I'll concede that the CPU business is not very cyclic, but, to the manufacturer with less than 1/3 the market, it is very cyclic.

Imagine if something like FDIV happened to AMD, even a year from now. There is also high technology risk for AMD. For example, we all know that if Pentium 4's turn out to yield to 2 GHz by the end of the year, AMD is totally screwed.

In short, the CPU business has always been extremely cyclic for AMD, because there is no room for error when competing with the 800 LB gorilla.

Finally, even a "growth recession" of less than 15% YOY growth could cause ASP's to tumble 30% and result in 15% YOY revenue declines.

So, I like the fact that CPU's are "only" 70% of AMD, and I would like it even better if they were 60%.

Petz
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