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Technology Stocks : Intel Corporation (INTC)
INTC 48.26-0.7%Feb 5 3:59 PM EST

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To: Jules V who wrote (34553)10/9/1997 4:12:00 PM
From: Time Traveler   of 186894
 
Jules,

This another reason why AMD stock is not tanking.

"To fit within the Compaq's cost structure, the K6 would have to sell for between $80 and $90 per chip, less than what the chip sells for now, said analysts. AMD's cost comes to approximately $50 to $60 per chip."

In Q3, AMD broke even on its non-K6 business. With K6's ASP being $150, 1M sold, and $32M loss, K6's cost for Q3 should be $182. The cost of a K6 in Q4 is not going to be $50 - $60 (becoming 1/3 less in a mere quarter) even with 2M chips produced, total BS and HYPE.

John.
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