dhellman,
Re:<<For yet another consecutive quarter, Intel Corp. (INTC) warned revenue would not meet expectations, but this time the chip giant blamed a worldwide economic slowdown and slack demand for personal computers. >>
Hehe, yeah, well, Intel does seem to be 'raising the stakes' each time it needs a new excuse as to why it isn't executing financially. Last time it was Europe, this time it's the Whole World economic slowdown. So what would be the 'escalation excuse' for next quarter? "Everything was going along great until Jesus ruined our wafer yields. Jesus hates our company, that's the problem!" ;-)
Actually, and I may be in opposition to much of the thread on this (haven't yet read the reactions posted yet), I think it most likely that Intel's announcement may be bad for AMD for two reasons: 1. AMD has never sufficiently differentiated itself from Intel. This is still true, and manifest by the fact that with almost every 'stock picker' I see on CNBC, their opinion is almost uniform: Intel is the leader, and the quality of the sector. So the old saw that what's "bad for Intel means worse for AMD" may be the perception that sticks. (Admittedly, if AMD had a great quarter in contrast to Intel's warning, this might do something to wake the (brain)dead analysts, but that leads to 2. There seems to be too much evidence that there really *is* a bear in the woods - i.e., a demand slowdown does appear to be a widespread economic condition, and not just in computers. If so, either AMD will be one of the next to warn, or they'll have to do some quick pumping to meet estimates - in which case they might still be screwed, just as happened last quarter with forcasts cut because of suspected 'channel stuffing'. I'd just be surprised to see AMD get much traction out of the current conditions. But we can hope, can't we? |
