Hello, Mark. Thank you for the message. I see your point on the constant competition between Intel and AMD everywhere even among us investors. To certain degree, it is natural for people to become a bit emotional if they believe in certain things very strongly.
Personally, I see nothing wrong with AMD's strategy to try to get a piece of Intel's pie. The micro processor business is so big and it is very difficult for me to imagine it to be totally dominated by one company. It is like anything else in our society, in whihc I have not seen any thing produced by only one company for a prolonged period of time. Even if AMD had not done that, some one else would have done that or will. Competition after all is the driving force of our economy, which heppens to be doing better than most of the economies int he world.
Given the size and potential of the micro processor market, I think that there is room for both Intel and AMD to prosper. Worldwide, the penatration of PC into every family and office is just beginning in my opinion. I am a native of China, and people there are just starting buying PC's for their homes, schools and offices. Remember that all of the processors inside those PC's will come from the US, namely, Intel or AMD. The growth potential is just mindboggling.
IMO, the key for AMD to succeed is to offer a combination of value and performance, which is competitive. I have been using AMD cpu's from 386 to 486 to K5. I am really happy with them because they are roughly half of the price of similar Intel products and faster. I would imagine that most people prefer the lower priced product between two similar yet differently priced products. At least that is what I was taught in school. Of course, in reality, a lot of factors are at work, such as marketing, and so on. Anyway, K6 is very critical for AMD. As an investor and user, I sure hope that AMD will deliever a good product on time.
I do not care much about what happened to AMD in the past. I only care about future. All great companies have had missteps and for the few that have not, I am pretty sure they will. Therefore, buying Interl is not a sure bet just as buying AMD is not. I think that is why we have an investment principle called diversification.
The above is just my 2 cents worth.
Baoho |
