Advanced Micro Devices - Moderated (AMD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 214.11

+3.9%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: AK2004 who wrote (189522)	3/13/2006 1:44:07 PM
From: Sarmad Y. Hermiz	Read Replies (4) of 275872

The issue that needs addressing is the question of what is the actual ratio of Intel prices relative to AMD prices. I see posts here talking of the AMD ASP of $100 vs Intel ASP of $150 as though that means Intel's prices are 50% higher (like-for-like), and therefor Intel needs to reduce its prices by 30 0r 40% to be below AMD. That is just plain nonsense. So what is needed is some sense of how much will Intel need to reduce prices to sell all of its chips ? In my opinion 5-10% across the board will be more than enough. But that is just a guess at this time. Can Intel afford a 10% reduction if it clears out its inventory and gives it good capacity utilization ? I think so. And it is already priced into the guidance and INTC stock price. The next question is whether AMD will accept a static or slightly reduced market share, or whether it will under-cut, daring Intel to drop prices another 10%, etc.... until they are both in the red ? I suppose this latter scenario is what is causing the sell-off.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next