Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.14

-0.8%

Jan 9 9:30 AM EST

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To: niceguy767 who wrote (239036)	8/18/2007 12:57:35 PM
From: wbmw	Read Replies (2) of 275872

Re: Given continuing weak pricing, can anyone reconcile INTC's 5% gross margin improvement guidance to reality? About 3-4 percentage points comes from the 45nm ramp. Basically, they paid a lot of up-front costs in H1, and do not expect to have to pay those again in H2. The other percentage points probably come from product transitioning. For example, Intel's Pentium 2000 series chips are small Allendale cores that replace the previous Pentium D. That lowers costs in one of the most high volume product lines that Intel sells.

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