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

To: Jim McMannis who wrote (117740)	6/26/2000 5:04:00 PM
From: AK2004	Respond to of 1576711

the message had some contradictory statements in it SALOMON SMITH BARNEY Industry Note ................................... * It also appears that availability in the Flash memory spot market, also used heavily in cellular phones, has improved sharply in recent weeks. Prices still appear firm, with some low-density parts even having a slightly upward bias in recent weeks. Even so, better availability could be an early indicator that the shortage, which some manufacturers are predicting will last until 2002, could be easing already. ................................ yet at another paragraph ................................ Flash market seeing better availability. Flash is another market that appears to be loosening up some, which is supported by reports from spot market brokers, cellular equipment makers, and motherboard assemblers. Overall, demand for Flash remains extraordinarily strong, driven by rapidly growth in markets as diverse as PC BIOS, cellular handsets, PDAs, digital cameras, MP3 players, and even networking. And prices remain firm, though reasonably volatile. We have seen high-density 32Mb Flash prices, which passed $200 in the spot market in recent weeks, fall back last week to about $182. Meanwhile, prices for 1Mb and 2Mb Flash, used in cellular phones, among other applications, tightened up slightly. Most Flash manufacturers continue to see no letup in the supply/demand imbalance. Advanced Micro# (AMD--$87.63; 1S), for example, is sold out until next year. Shipments should increase in the high single-digits this quarter, accelerating to double-digits over the next two quarters. The company is expanding its bit output by about 70% this year, then 100% each year for the next 3 years. Despite the strong demand, the big price moves over the last 12 months, management believes, are now over, with an outlook for stable pricing going forward. AMD believes its own average prices could rise slightly due to higher densities. Business conditions remain very strong at Silicon Storage# (SSTI--$108.25; 1S), as well. .....................................