Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.80

+1.7%

Jan 16 3:59 PM EST

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To: niceguy767 who wrote (226597)	2/21/2007 8:17:04 PM
From: eracer	Read Replies (2) of 275872

Re: Kudos to Hector for staying the MS(market share) course, the only pathway to ensuring AMD longevity! It's not the only pathway. The other path is holding a significant performance lead over Intel in roughly three out of every four years. If Intel could hold a significant performance lead about 75% of the time AMD's survival is not ensured no matter how many processors AMD is capable of producing. Hector is pretty much admitting that price cuts alone won't gain them much, if any, any further market share gains. Quotes like "we're very much emboldened and will hang in there" and "we intend to fight like crazy to retain it" imply market share stagnation or even regression, not growth. INTC has given up huge margins in attempt stall AMD's progress and protect its monopoly, INTC's only way to secure profitability for its bloated structure. What if Intel someday decides to cut the bloat and streamline operations instead of just cutting margins? AMD will then be doomed, right? And I can see why so many people were thinking Barcelona will outperform Clovertown by 40+% in almost every type of benchmark. AMD is saying no different: RICHARD: It's in the speculation stage. [But] we know that we expect performance gains in the 40 percent to 70 percent range, and we know the scalability of our architecture is better than the competition... And why does Ruiz comment on AMD's cash situation after saying he can't comment on AMD's cash situation? Hmmm..."but at this point in time I don't see our balance sheet crying out for any unusual or desperate measures." What about two weeks from now? Or six months from now? I remember AMD claiming in the December 14th analyst meeting that they were "on track" for 55-60% gross margin in 2006, yet 2006 finished under 50%.

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