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

To: Scumbria who wrote (92726)	2/12/2000 9:36:00 PM
From: Saturn V	Respond to of 1574001

Yes, Ref- <An interesting post of yours from last summer- "I sincerely believe that Raza quit because he wanted to downsize AMD's fabs to reduce AMD overheads, and cut AMD's break even revenue point. Sanders, the perennial optimist, could not consider it. He is a gambler and is betting the company and all the shareholders money, for his last roll of the dice. Raza was more pragmatic and wanted to keep AMD alive if the K-7 ramp does not meet Sanders wild dreams. I made the statements before the reasons for Raza's departure were known. My speculation was correct, because I also hed views very similar to Raza. However Sanders had the right gut feel that the industry several year over capacity situation was going to end very soon. Plus Intel's fumbles with the late Coppermine design, and Intel's underprediction of microprocessor demand, have given AMD a golden opportunity. AMD tactics have also changed for the better. Twenty five percent lower price than Intel, was a financial disaster, when Intel had lower cost of production, and had surplus capacity. Now AMD strategy for survival is not to fight Intel head on price, but to find holes in the Intel road map, and exploit them. The K-7 and the Sledgeammer are good opportunistic plays, but require speedy and outstanding execution. AMD will bask in sunshine for at least one more quarter. Soon the gorilla will have rectified the capacity situation, and the Willamette, and Timna will change the x86 landscape, posing fresh challenges for AMD. The depreciation charges from Dresden will also significantly impact the bottom line. I think very soon Jerry may take the opportunity, to take a bow, and exit the stage, while the sun still shines brightly upon him.