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: hmaly who wrote (4850)	8/13/2000 8:28:55 PM
From: Charles R	Read Replies (3) \| Respond to of 275872

Harry, <In AMD'S case, a delay in chipsets caused a delay in revenue from 2nd q. to 3-q or 4-q. Big deal, the revenue will eventually be recorded. > This analysis is quite wrong. AMD lost those sales for ever. A chipset problem free ramp would have been about 7-7.5Mu in Q2, 8-8.5Mu in Q3, 10+Mu in Q4. Instead we got 6.3Mu in Q2 and are likely to get 7Mu in Q3, 9Mu in Q4. Several hundreds of millions of dollars in lost revenues and profits which AMD will NEVER get back. This is BIG deal. <AMD is still producing a large amount of high mhz chips;(look at the availability on pricewatch) and it is only natural to lower the price to stimulate sales.> Frank makes a point about aggressive pricing affecting the stock price and Frank is on the mark. AMD will gain market share as a result of the drop and that will help AMD make up for some of the lost sales from Duron. But a lot of people may not see it that ways. It is all about perceptions in this business and some folks out there perceive the price drop as a price war that will kill AMD. There is also a chance, however remote, that a mild price war could develop especially if the demand slows down. Chuck

To: hmaly who wrote (4850)	8/14/2000 10:19:27 AM
From: f.simons	Respond to of 275872

>>Frank, your question made no mention of stock price. I believe there is an irrational skittishness concerning all stocks on the market right now.<< hmaly- Stock price is the background against which all discussions take place. We can disagree about what a company should do to produce profits, but not as to whether profits is the purpose for being in business. Of course AMD acts with one eye on Wall Street. I am not alone in this as there have been dozens of posts here about AMD needing to improve PR and IR. Intel could use the same improvement. I did not mean to hint that AMD should do this or that to keep WS happy. Like all companies I would want to own, WS considerations enter into decisions made by AMD. Some of those decisions will be good, some not so good, just like any other company. I agree with your R&D comments completely. Frank