Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Road Walker who wrote (123578)	9/7/2000 3:58:04 PM
From: niceguy767	Read Replies (1) of 1570915

John: "So you are happy with AMD's stock price?... Interesting, they will grow their revenue more than AMD's total revenue." Comments: I'm very happy to be purchasing at $33, a significant discount to any realistic valuation based upon any model that can be applied to any other semi... I would hope that a company with a market cap of 40 times AMD's would have greater absolute revenue growth...The point I'm making is that revenue growth rate, that is , the percentage increase in revenues, for semis, including Intel, will normally be less than p/e multiple...Case in point INTC's growth rate is 17% comapred to AMD's 50% plus and INTC's P/e multiple is about 40 (i.e in excess of 17% growth rate) compared to AMD's p/e multiple of 12 (vs. growth rate of 50% plus)...My conclusion based on these very basic and significant benchmarks is that a major price realignment between AMD and just about any other semi including Intel will occur over the next 6 months!!!

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