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

To: Aaron Cooperband who wrote (92964)	2/14/2000 2:45:00 AM
From: SteveC	Read Replies (1) \| Respond to of 1574683

Aaron, you're searching for some suspect purpose on AMD's part when you mention the most obvious reason. Wake up! It's too early in the quarter to give an earnings guidance because of potential legal liability. AMD probably has a very good idea what profit is achievable this quarter. However, if AMD announced it expected strong earnings this early and for any number of reasons AMD was ultimately wrong, the share price could collapse and AMD would be hit with a wave of securities fraud suits. Take a look at what happened recently with the supposed "blue chip" Lucent. It's ugly when you lead the street one way and then have to reverse course at the last moment. Of course, this story unfortunately isn't new to long term AMD shareholders. The fact that AMD gave a positive statement on revenues so early in the quarter is the most you can expect of any prudent company. By the way, has anyone checked out Gateway's web site recently? From the homepage, there are easily links to AMD powered Gateway Select models, including the 850. It seems to me that Gateway is positioning the entire AMD line as a sweet spot alternative to Intel. A customer might go in thinking of buying an Intel computer (or even not realizing there was a choice) and by the time he or she has finished exploring Gateway's site, the consumer realizes that one can buy an AMD computer for hundreds of dollars less with otherwise the same configuration or even faster microprocessor than with an Intel chip. I believe that most consumers actually don't want the most expensive computer unless they are rich. Consumers want a mid to high end computer that they got a good deal on (in part, because you know you'll be lucky if you're still using that computer 5 years from its purchase). I'd love to know how Gateway's Select line is actually doing, and wouldn't be surprised if Gateway has quickly become one of AMD biggest customers.