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

AMD 238.40

-2.3%

12:54 PM EST

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To: StockMan who wrote (3216)	12/29/1997 2:35:00 PM
From: slob	Read Replies (3) of 6843

Stockman, I agree commodity semi's stink, however AMD does not have to do commodity chips. If you look at the flash / eeprom markets companies like Microchip and even Atmel are still making a lot of money with integrated Flash microcontrollers. Also PLD's are the building blocks for FPGA's and XLNX, ALTR have traded at P/S multiples above 4, which is much higher than AMD has ever reached. So in short, I think you can find very profitable areas in each of these market segments. I agree that AMD management is focused on the X86 market, they even seem blinded by the desire to defeat Intel. The part I don't understand is how they think they can defeat Intel by cornering the Low profit end of the market. If AMD is successful than they will reduce X86 chips to a commodity play. I just don't see how this benefits AMD. As for AMD trading at $5, I think that this is wishful thinking. It seems to me that AMD is a take-over cadidate at any price below $10, I'd be looking for an NSM buyout if AMD hits $10. Slob

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