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Politics : Formerly About Advanced Micro Devices
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To: Paul Engel who wrote (54380)4/6/1999 1:06:00 PM
From: Daniel Shaffer  Read Replies (1) of 1580593
 
Re. AMD vs Intel contribution margins.

Thanks, Paul!

By contribution margin, I meant the difference between the direct cost of producing chips compared to their selling price. Gross margin, if I'm not mistaken, is the aggregate equivalent of this -- Sales revenue less "cost of goods sold" (I would also subtract marketing costs to get a true picture of "cost of goods sold").

I think there is money to be made on both AMD and Intel by buying on big dips and being patient, but Intel certainly has a much lower long-term risk.
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