Scumbria:
"Good point. AMD is taking a very conservative approach, and leaving little room for delivering a defective product. Which is the only thing that could hurt them right now."
AMD has put in place a solid foundation over the past year by providing high quality and leading edge product in both the microprocessor and flash sectors, and more profitably than at any time in their history. Even in a slower economy, this unbeatable combination of characteristics...high quality and leading edge technology...will reap rewards for AMD well above the industry norm as long as, as you have pointed out, this image is protected...
The palomino family of processors, once unveiled will in all likelihood reinforce AMD's image as a quality company with leading edge product, which if so, will surely usher in the next phase in AMD evolution, a phase in which AMD competes in the mobile, server and workstation spaces...Obviously because the market's first impression of the palomino family of processors could be long lasting, it is paramount that AMD get it right on the first unveiling...AMD can't be too careful in its proactive measures designed to avoid any pitfalls, even if it results in a small delay...(Having said that, I can't wait to see the 1 gig mobile pony...should be surfacing at any moment now, I'd have to think.)
By the way, at $20, seems like the market, as well as some on this thread, is factoring in zero revenue growth in Y2001 for AMD and a Q1 eps a little less than INTC's which is currently estimated somewhere close to $0.20...If so, could be some huge investor surprises come the 17th and 18th when INTC and AMD report Q1 earnings...With half the processor mix comprising 1 gig and up Athys out of Dresden and flash fairly well protected to the end of Y2001 by which time flash prices may well have recovered significantly, I'm loooking for a decent Q1 for AMD, which if so, may once and for all propel AMD back through $30, and perhaps even signal the end to the bear market in which the Nas has dropped in 1 year from 5000 to 1750...In any upturn, AMD is exceedingly well positioned with its current product lineup and all the moreso, should the palomino family measure up to some of the expectations currently in place!!!
Lots of reason for doom and gloom in this market, but AMD is not one of them, at least not on the basis of its outstanding strong basic fundamentals!!!
Exciting times await the AMD investor with Q1 performance destined to be well above the sector norm and the palomino family of processors waiting in the wings! |
