Albert Re..Advanced Micro Devices (AMD, $16.30 +0.17, Buy, Target Price $20)
1Q: ($0.05) on $904 million, 2002: $0.13 on $3.8 billion, 2003: $0.97 on
$4.8 billion<<<<<<<<<<
Albert, good catch. However the article does little to resolve our little MNiller lite tussle here. On one hand Scovel states
Fundamentally, we consider this bad news for AMD and its
strategically important 64-bit Hammer family initiative due out later this year,
and good news for Intel as a contingency to address such a competitive threat.
However, the Yamhill program is also extremely awkward for Intel: first, it
would tacitly endorse the AMD Hammer product strategy and plans; and second, it
could undercut the significant effort of years and billions of dollars behind
the 64-bit Itanium family intended for high-end servers, that is not backward
compatible with the existing x86 software code. We have not been as bullish on
the Itanium as others due to limited unit market potential, but those that have
been more bullish could likely be very concerned that the Yamhill would
cannibalize some portion of the Itanium potential opportunity. We also believe
this awkward situation for Intel actually works in AMD's favor, to a degree:
Intel would likely not introduce the Yamhill unless and until the Hammer proves
successful, thereby ensuring AMD's market lead. <<<<<<<<
Which is it? Good or bad. And the argument goes on. Stay tuned. |
