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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Joey Smith who wrote (63825)	6/30/1999 4:51:00 PM
From: Charles R	Read Replies (2) \| Respond to of 1575603

The logic of AMD short doesn't sink into me. Yes, the VIA thing will effect them but their valuation already reflects failure. If the K7 bombs, you are looking at a $15 stock and the upside is only limited by their execution. AMD will try to ramp up K7 big time in the next couple of quarters and reduce the K6 shipments to a trickle if the pricing does not improve - so, I don't see them being as susceptible as INTC to VIAs attack. Also, VIA will ride on Celeron infrastructure - a sweetheart deal and a more direct threat to INTC. I have travelled Asia extensively and have worked with Taiwanese many times and I have yet to see anyone come close to them in cost containment. If there is who can pull off the lowend attack against Intel it is the Taiwan, inc. Now, INTC stock, as opposed to AMDs or anyone else in the semiconductor industry, is based on almost 60% gross margins and ~25% net margins. Taiwanese, on the otherhand, can prosper on 30% GM and turn a decent profit. They are very good at this. To be sure, I won't be half as pessimistic on what VIA can do to the Microprocessor business if TSMC is not involved - TSMC, IMHO, is a gaint in formation. Chuck