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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 198.55-7.6%11:12 AM EST

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To: that_crazy_doug who wrote (16095)10/26/2000 12:25:44 PM
From: GoutamRead Replies (1) of 275872
 
that_crazy_doug,

re: < That sure would help via, but what motivation does AMD have to do it, since it would definitely not help AMD. >

It's in AMD's interest to support its chipset partners until AMD gains a sizable market share. In the near term (until Q2'01?), without any considerable market share, AMD has to play a proactive role in nurturing its external partners. A sizable market share in the future will absolve AMD from this necessity / obligation.

Also, it's in AMD's best interest to leave consumer segment to its partners, and push the first tier oems for corporate skus based on AMD760. This will allow AMD to gain more CPU market share, which is far more important rather than gaining the chipset market share. It'd be a win-win situation for AMD, and its partners.

goutama
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