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: Pravin Kamdar who wrote (97629)	3/9/2000 1:11:00 PM
From: Joe NYC	Read Replies (3) \| Respond to of 1570901

Pravin, I'm still worried about Tbird and Spitfire L2 cache yield problems. I'll feel a lot better when we pass than hurdle. I agree. That and a acceptable yields from Dresden would mean that AMD will not be production constrained. The challenge will be just to sell everything they can make. That means battle for market share. Today, AMD is equipped very well to fight it. We will see if Intel can squeeze any more out of the P6 core to be competitive in Q2, Q3 and Q4. If all the reports are correct in that AMD is the only CPU vendor for the X-box and the launch date will be late 2001, from the earnings perspective, it means nothing to AMD until maybe Q2 2001. So we are still 5 quarters away from seeing any financial benefits from it. But the hype and commitment from MSFT should in the meantime put some premium to AMD's PE. With X-box, an important part of MSFT's business will depend on survival and prosperity of AMD, which I hope will mean that MSFT will make sure that AMD will survive and prosper. Joe

To: Pravin Kamdar who wrote (97629)	3/9/2000 6:41:00 PM
From: Petz	Read Replies (3) \| Respond to of 1570901

Dan Skovel at Fahnestock (courtesy Albert): *On Copper Fab30 Yields: "AMD: BUY. (NYSE, 53 15/16 -1 1/16): Management Meeting: Management expects to ship hundreds of thousands of the new high-performance 900MHz/950MHz/1GHz Athlons 2Q2000, but only a limited quantity this quarter/month to Compaq (NYSE, CPQ 26 3/4) and Gateway (NYSE, GTW 63 1/4). Its performance visibility currently ranges as far as 2GHz by the end of 2001. The Dresden Fab 30 production ramp of Athlon is doing well: 0.18-micron copper interconnect process is working fine, yields are excellent and management believes its speed distribution is very competitive with Intel." Future business plans including Dresden "sharing":* "AMD has no plans to pursue a Timna-type integrated microprocessor and graphics device. The flash memory business remains very hot and capacity expansion plans are on-track. AMD has never been a supplier to Ericsson (OTC, ERICY 102 29/64) and has no plans to enter the mass data storage flash market at this time-it has a NAND-type device, but is not attracted to the expected cost-driven economics of the segment. Management would not comment on the Microsoft Xbox (OTC, MSFT 95 9/16) game project expected to be announced tomorrow, other than admit AMD is one of two bidders. Plans to engage with a partner to share capacity and costs of the new Fab 30 in Dresden are being re-evaluated. Simply put, the company is significantly more confident it will fully utilize the facility as it ramps over the 18 months beginning 2Q2000 than it was last year when the plan was hatched. The communications business is not part of AMD's long-term strategy and will likely be restructured in some way (sold, spun-off, merged or other). In the mean time, it is growing by 25% and very profitable. We believe the outlook for the Athlon has improved with diminishing manufacturing risks, and the company is well positioned to compete with Intel over the next several quarters. We expect to revise our earnings estimates upward over the next few days."