I have often described in these pages the AMD business plan as "the business plan from hell". I haven't seen any reason yet to change that view. The AMD supporters are enamored of the underdog role and think that this contest between AMD and Intel is some version of Rocky I. In point of fact, in the real Rocky story on which the first film was based, a club fighter named, I think, Chuck Wepner, managed to survive 12 rounds with Mohammed Ali. However, Wepner did not go on to have a very rewarding life, to say the least. But lots of folks love long shots because the payoff is so big and the psychic rewards of being right when everyone else is betting against you are so great.
AMD has some genuine achievements and has accelerated the already strong downward drift in PC prices. For that the consumer should be grateful. As an investment over the long pull, AMD has been, to be kind, extremely poor. As a trading vehicle, with violent lurches in both directions, it's been great for those nimble enough and disciplined enough to capitalize on it.
Good investing,
Burt |
