Lest we forget with all the NGA "would/could be chatter" amidst an assumed idle AMD, AMD did report a $0.38 in Q1, and were it not for debenture and SPSN charges of $45M, would have posted around $0.50.
It does look like SPSN charges may well turn to revenues by Q3 and Q4 while debenture charges disappear thus perhaps resulting in a $50M to $100M positive swing in earnings...and that's before Turion 64 X2 design wins and 65nm DC wins in the fall.
Don't know about anyone else, but I can't see how AMD can miss posting an eps of $2.00 plus this year, which if true, might suggest to some, certainly me, that at $31.75, the most optimistic of NGA scenarios, not to mention high yield scenarios, is already factored in...and much more!
Typical case, as I see it, of "skittishness" amidst the AMD investment community over reacting to the Conroe mumbo-jumbo.
With Opteron, AMD is now entrenched in the enterprise as a viable alternative. Somehow it seems rather ridiculous to assume that, now entrenched owing to Opteron innovation, that AMD has somehow hit the innovative wall.
On the contrary, if AMD, against all odds and without enterprise entrenchment was able to successfully bring Opteron to the enterprise, imagine what may lie ahead with all the IBM support, the tentacles in India and China, and a new state of the art Fab 36. |
