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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 253.73+1.6%Jan 22 3:59 PM EST
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To: Dan3 who wrote (48703)7/23/2001 1:13:05 AM
From: CirruslvrRead Replies (2) of 275872
 
Dan - RE: "Yes, but you seem to be under the impression that it has to be paid for years in advance."

No, but they have to secure funding ahead of time. Whether that is by issuing more bonds or borrowing from banks, their debt will go up. My original point was while AMD's long term debt went down recently, it will go back up when during the process of building a new fab. And they are currently looking at where to build a new fab, so the process is beginning.

"They'd love higher ASPs, but they can execute their business plan at $75. And that includes continuing to fund and build new FABs and taking 30% market share."

Dan, with the current situation, either their ASPs will stay or go up and market share will go down significantly or they will shoot for 30% market share at a MUCH lower ASP. Either way it doesn't look too pretty.

"If AMD pumps out 6 million morgans from Austin and 9 million Athlon MPs and Athlon 4s from Dresden in each of the first few quarters of next year at $75 ASPs"

What situation would lead to AMD producing 50% more high-end processors than their low-end processors? Where is the market for 9M Athlons when AMD sold 7.7M TOTAL processors while stuffing the channel in Q2?
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