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Technology Stocks : AMD:News, Press Releases and Information Only!

AMD 214.90

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3:59 PM EST

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To: Joey Smith who wrote (1103)	10/7/1997 11:55:00 PM
From: AK2004	of 6843

Joey really? Let for the sake of the argument assume that amd would just break even on those 250K chips. Jerry wants to sell 15M chips in 98 which would imply increase from ~5M (just guessing what k5 and k6 add up to be) by 200%. AMD would need recognition of brand. Signing up ibm and compaq would do just that. 250K over the period of 2 quarters for compaq would be an opportunity loss in unlimited demand environment of $50*250K=12.5M max and more likely half of that. That is 3-6M/quarter for brand recognition? That is one cheap and effective ad compaign. Of course that is in unlimited demand environment and in real one the opportunity loss is even less. One problem that might hurt if amd would not manage to increase production over the period of 1 to 3 quarters but in that case it would not make much of a difference either way. Think..... -Albert

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