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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 214.96+5.5%3:59 PM EST

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To: Sarmad Y. Hermiz who wrote (228822)3/24/2007 6:40:06 PM
From: Joe NYCRead Replies (1) of 275872
 
syh,

Share price will improve when AMD accepts that they should make and sell only the products where they have a reasonable margin ?

AMD's margins are determined to the greatest extend by ASPs, and ASPs are determined by Intel (as long as Intel has performance leadership). There is no safe area where AMD can retreat, therefore, AMD must run at fullest utilization of its fabs.

Joe
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