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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 215.65+0.3%Dec 29 3:59 PM EST
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To: pgerassi who wrote (247698)2/13/2008 9:54:54 AM
From: chipguyRead Replies (1) of 275872
 
And you must be crazy to think INtel wouldn't raise their CPU prices significantly, if AMD leaves the CPU business or goes bankrupt.

This is an almost universally held view by fanatical AMD
camp followers. But it is dead wrong because it is the
mentality of the rooster who thinks his crowing makes the
sun come up every morning or a car chasing dog who
thinks cars speed away out of fear. It is the fallacious view
of self-importance held by people who personally identify
with completely non-essential organizations, movements,
companies etc.

The simple fact is by far Intel's biggest competitor, by far
largest obstacle to selling a processor into the market-
place, are the Intel chips already in place in systems that
are happily humming away doing their job day in and day
out. Compared to that AMD and its products are noise, a
second order effect at best. Whether AMD exists or not
Intel has to always continuously offer better value (higher
performance, lower power, more features and capabilities
that are cost effective) or upgrade cycles would stretch
out and sales would fall to break down replacement levels
plus very slow increases in the size of the economy.
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