Judy, AMD is breaking even here at the rough in the cycle, their gross margins are starting to look good despite the fact that they spend more than 20% on R&D, by itself quite impressive. Maybe the old man has learned something and finally removed all those signs "Kill INTEL" and is concentrating instead on making money. I have not followed AMD closely for some time, so, I do not have a pro or con position on its fundamentals recently, but the last quarter was surely a blow out.
The last report does not show how much depreciation is charged against those earnings, but since their Fab 25 is now fully operational, I think they may actually surprise further on the upside. The fact that Intel is under the microscope by the antitrust division at Justice, will probably relax some of INTC "predatory" pricing tactics, letting AMD make a little money.
Of course, the blip here in the chips might just be pre Christmas inventory build up which might evaporate in the next quarter, but who knows?
Zeev |
