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

To: minnow68 who wrote (107649)	4/24/2000 6:26:00 PM
From: Mani1	Read Replies (3) \| Respond to of 1574267

Mike re <<I suggest that the market cap ratio of Intel to AMD will continue to shrink.>> Well it is now at 31.9 ! It was over 100 not too long ago. I think that ratio of 8:1 is not too far fetched. Mani

To: minnow68 who wrote (107649)	4/24/2000 6:49:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1574267

Minnow, <The ramp can be a technical triumph and still fail from a business perspective.> Actually, I think that's EXACTLY what happened. Intel underestimated demand, so they had to make up for a lack of sheer fab capacity by ramping production per fab faster than ever before. <Consider that even after AMD's rise and Intel's fall in stock prices, Intel's market cap is 31.9 times that of AMD. AMD sold 1.2 million Athlons in Q1. To justify this market cap differential, Intel should have sold 38.29 million Coppermines in 2000Q1. Did Intel sell this many?> Both Intel and AMD sell many other products besides Coppermines and Athlons. AMD also sold over 5M K6-x CPUs, while Intel sold a lot of 0.25u processors, including Celerons. Besides, AMD is also benefiting from flash. (Intel is, too, but to a much lesser extent.) And don't forget that Intel said they experienced lower chipset sales. With all of the problems that the 820 chipset has run into, this shouldn't be surprising. Market cap is much more than a function of Coppermine or Athlon sales. Tenchusatsu