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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 215.75-2.6%10:24 AM EST

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To: Tenchusatsu who wrote (46970)7/10/2001 5:29:59 PM
From: AK2004Read Replies (2) of 275872
 
Ten
it is all about maximizing the profit, agreed.
it can not go forever, agreed, but going from 20% to 30% is a substantial pickup in unit sales. Intel may not be at the point where few % counts but amd is.
Now lets talk about maximizing; 1st of all the ideal is when shareholder equity is maximized and not earnings. Maximizing the current earnings at the expense of future is not a good idea because it does not exactly maximizes shareholders equity. Going after market share may cause amd some $$$ in current earnings but if the results are better infrastructure (support), brand recognition, reduction in expense/unit, etc then the loss in current earnings may and should be viewed as an investment. If present value of that investment is higher than the current $$$ loss then the investment is a wise one. While I want amd to earn as much as amd could I do believe that the expansion is more important for amd at this stage.

Why do you think intel is trying so hard to stop amd? I would guess that the price war cost intel more than the total value of amd. Intel does not want a real competitor to emerge.

Regards
-Albert
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