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

To: James Calladine who wrote (112666)	5/25/2000 12:20:00 PM
From: xun	Read Replies (2) \| Respond to of 1570865

Jim, Nice post. I tend to agree with you that a potential BIG buyer wants in. Did we see similar patterns before (1) American Fund bought huge amount of AMD by 3 of their large funds (My 401K happens to be with them) (2) FMR bought huge amound (to AMD standard)? If there is no bad thing cooking, i.e., no BOMB, AMD ought to have another double in 3-6 months, IMHO. This AMD stock behavior indicates AMD is either very bad or very good during that time span, IMHO. panic

To: James Calladine who wrote (112666)	5/25/2000 1:45:00 PM
From: d e conway	Respond to of 1570865

Cause of our dramatic price reversal...Intel says supply crunch next 12 months. (Adds comments on New Mexico plant, India plans) By Narayanan Madhavan NEW DELHI, May 25 (Reuters) - Computer chip maker Intel Corp (INTC.O) expects a tight supply position in the industry for another 12 months as components run short, its president and chief executive officer, Craig Barrett, said on Thursday. "There is nil balance between supply and demand," Barrett told a news conference in response to a question on the state of the semiconductor industry. He added that investments made to address the shortage will take time to result in increased capacity. "I...think the semiconductor industry as a whole underinvested in 1998 and 1999," he said. "I'd expect some shortage of components for the next 12 months or so." Intel's stock surged $7-1/2 to close at $117-3/8 on Wednesday after it said it would spend $2.0 billion over the next three years to boost the number of chips it can make at its New Mexico plant. The announcement reversed a fall on the Nasdaq, which gained 3.35 percent on Wednesday but Barrett shrugged off the linkage between the market and the announcement. "I haven't the faintest idea on what sends the Nasdaq up or down on a daily basis," Barrett said. "And I am quite sure that the announcement on New Mexico did not send the Nasdaq up or down." However, the Intel announcement and the Nasdaq rebound had a resounding echo in Europe, where stocks of microchip makers surged on Thursday. France's STMicroelectronics (STM.PA), British chip designer ARM Holdings (ARM.L) and Dutch semiconductor maker ASM Lithography (ASML.AS) saw their stocks climb. BOOST TO INVESTMENTS IN INDIA Barrett said the New Mexico plant would address the demand for all types of microprocessors and said his company had no plan to "abandon" desktop personal computer chips, a segment in which Intel is facing tough competition from Advanced Micro Devices Inc (AMD.N). Barrett was in India after swinging through Hong Kong, the Philippines and Malaysia as part of a five-day Asian tour during which he has focused substantially on the company's emerging profile as a maker of chips for networking computers and appliances that will help the Internet and communications. "We plan to have our communications and networking business grow at 50 percent a year between now and 2003," he said. Networking products currently account for around $2.0 billion in sales and communication products around $1.0 billion, he said. Intel planned to invest around $100 million in India in technology start-ups this year, up from $10 million last year, Barrett said. He added that Intel's software development centre in Bangalore which currently employs around 50 engineers now, was expected to have 500 people in three years. Rtr 09:07 05-25-00