Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 204.70

-2.5%

3:59 PM EST

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To: Tony Viola who wrote (77547)	4/17/2002 7:04:48 PM
From: Dan3	Read Replies (2) of 275872

Re: Maybe because they're planning on making a lot less chips? ;-) AMD is presenting an interesting strategy. With the transition to Tbred/Clawhammer, the Dresden die size shrinks, and units should move up to 10 to 12 million. A modest recovery in flash and flat "other" revenue would yield 300 million in revenue. That puts AMD's breakeven ASP at $50 to $60 in Q3. Add to that 4 million dice per quarter that they'll be buying from UMC by Q4 or Q1 at about $10 each (packaging and testing would probably add another $15) and AMD could be shipping 15 million parts in Q4/Q1 with a breakeven ASP of $47. Given that AMD now has a presence in the more lucrative (once lucrative?) mobile and server markets, Intel may be facing a fairly tough second half - which they indicated in their conference call. AMD is setting itself up to make $2.40 per share annual pre-tax profits at $60 ASPs....

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