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

To: Scot who wrote (102207)	4/5/2000 9:35:00 AM
From: Scot	Read Replies (1) \| Respond to of 1576853

More from briefing.com briefing.com 09:30 ET **** Advanced Micro Devices Inc. (AMD) 61 1/8: The chip sector should get a lift this morning after this major supplier of integrated circuits for PCs and networked computers said that it expects to post record Q1 sales in excess of $1.06 billion. According to CEO W.J. Sanders III, AMD has experienced strong sales growth across all its product offerings as Flash memory and PC processors "reached new records in units and revenues." Mr. Sanders expects sales in the period ended April 2 to expand by 10% above its Q4 level. In Q4, AMD had sales of $968.7 million and earnings of $0.43 per share. For the current quarter, AMD is projected to earn $0.43 per share on sales of about $1.0 billion. According to Mr. Sanders, AMD has been a major beneficiary of the strong demand for chips at a time when Intel (INTC 132 3/4) has had problems meeting increasing OEM demand. Since the dynamics of the supply situation are not expected to change very soon, AMD should continue to benefit from strong chip demand over the coming months which should also help results in future quarters. Investors should not forget, however, that AMD has had a spotty sales and earnings record. The company has had a history of over-promising and under-delivering results. However, in the past couple of quarters, the company has managed to keep to its word and this has helped lift its stock to all time levels. As such, Merrill Lynch has already upgraded the stock this morning from a near-term "neutral" to an "accumulate" and from a long-term "neutral" to a "buy" ratings. At the same time, the firm has established a 12-18 month price target of $120.** While the market is likely to get off to a slow start this morning, this issue should do well once the market settles down and probably help other chip makers in the process as strong chip demand seems evident across the board. - RN