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.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (1985)	7/23/2000 2:41:58 PM
From: Paul Engel	Read Replies (3) \| Respond to of 275872

Re: "ASPs in the markets where AMD and Intel compete are getting a lot closer." Inadvertantly, you stumbled on a truth ! Unfortuately for AMD, these "common markets" are the retail DESKTOP markets, amounting to about 11% to 15% of the total CPU market. However, about 90% of AMD's business is in that retail market while the percentage of Intel's business in the retail market is closer to 10 or 15%. So, Intel competes in the high end Notebook market with Pentium IIIs - with ZERO competition from the POWER SUCKING 50 - 60 watt AThWIpers. In corporate Desktops, Intel competes with near zero competition from AMD. In servers, Intel competes with ZERO competition from AMD. As Intel transitions to higher speed Celerons and, next year, 0.13 micron Pentium IIIs, and 1.4 GHz 0.18 micron Willamettes, Intel can still effectively drop ASPS at the low end and make up for this by higher volumes of Willamettes and Servers CPUS and Notebook CPUS, etc. Your failure - as is common to most AMDroids - is to focus on how much damage AMD can and may do to Intel. Look at YOUR OWN DATA - AMD has FAILED to do any significant damage to Intel. As an AMD investor, (OR ARE YOU A GET-POOR-QUICKLY AMD OPTIONS JOCKEY ?) your job is to worry about AMD making profits and solidifying their product line. You - and most of your starry-eyed AMDroid brethren - have clearly taken your eye off the ball. You might also ask yourself about AMD's "vision" - where are they going to grow outside the CPU and Flash Memory business ? When the current business cycle slows down - at the same time incredible Wafer Fab capcity comes on-line - there will be incredible price wars in PC components. Where will AMD go to increase revenues? What new markets are they developing ? What new product areas are they entering ? What growth opportunities and new businesses are they discussing with analysts and investors ? Paul