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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 207.67+2.2%Jan 12 3:59 PM EST
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To: niceguy767 who wrote (214561)10/24/2006 12:57:55 PM
From: ChrisBBoRead Replies (4) of 275872
 
and restored margins, as a result, combined with a nice bump in Revshare in Q4 stemming from the Dell arrangement and 65nm product will more than offset the additional dilution and additional debt load attributable to the ATI purchase.

Why do you think AMD's margins will increase ?

I'm worried they won't.
If I were AMD, I would be worried about Intel's goods in production dropping Q on Q for a change.
Intel is supposed to have surplus capacity and their production drops in Q3 of all quarters, while it increased by around 10%/Q for the previous couple quarters.

So, Intel might have had a lot of idle machinery for the past 4 months - living off their inventory. If Intel pushed the "Mother of All Ramps" button back then, what percentage Core2 might they reach in Q4 ?
Suppose Intel aimed for 60% Core2 in Q4. How would such a move impact margin, market share and profits ?
If it also cleared their inventory of brown bananas, would WS tolerate it, and would Intel dare to do it ?

Where would AMD be in Q4, Q1 in such a scenario ?

Of course, if a Core2 wafer is cheaper or faster to produce compared to a PIV wafer, that would be an alternative explanation.

I could also be completely off base. What do you think ?
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