Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tenchusatsu who wrote (79811)	11/13/1999 5:51:00 PM
From: ajbrenner	Read Replies (1) \| Respond to of 1579255

Re:A better question would be why AMD would lose anything in Friday's trading. Tench, I think the short answer is "profit taking". Despite what some AMD longs (such as myself) hope, AMD will not rocket through the ceiling overnight. What we need to do is establish a reasonable base and move up from there. Re:Is Wall Street concerned that this response will drive AMD back in the red? I don't know about Wall Street but I sure am. I think we can agree though that further drastic price cuts by Intel followed by matching cuts by AMD is good for no one but the short sellers. ajb

To: Tenchusatsu who wrote (79811)	11/13/1999 6:09:00 PM
From: Goutam	Read Replies (1) \| Respond to of 1579255

Tenchusatsu, Is Wall Street concerned that this response will drive AMD back in the red? I think Friday's drop in AMD was profit taking, but your point is a valid point. Wall Street may continue to think that Intel pricing is as potent as it used to be and may keep the AMD stock price down. But in my view, as per my non-scientific calculations, a $50M AMD loss in Q1'00 due to Intel price pressures will be about an additional $1.1B missed opportunity for Intel! A $100M AMD Q1'00 loss will be about $1.4B missed revenues for Intel. This is based on 2M Athlons in Q1'00, exploding Flash market and other assumptions. When it comes to Q2'00, it would cost Intel a 2x more lost revenue to above, to put AMD into red. IMHO, sooner or later Analysts will realize this and will come up with right valuation of AMD. Goutama