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

To: Joe NYC who wrote (4898)	8/14/2000 1:15:05 AM
From: Charles R	Respond to of 275872

Joe, <Since AMD's bin splits are very competitive, the risk is lower. > Agreed - in part! However, if AMD tries to push too much product into the too short a time, there has to be an outlet and right now the only market where AMD has that kind of flexibility is the consumer market and that is not big enough to push through million or more excess CPUs in a single quarter. Such an act could cause severe price erosion. This risk would have been much lower if AMD wins a few business SKUs. May be in quarter or two that will change. < The chips can always be sold 1, 2, or 3 months later. > As long as it is not quarters, I agree. Once things start flowing from one quarter to another the effect shows up on the balance sheet and the inventory bloat will not be seen positively. <This could actually help AMD in the future, since it will allow more flexibility in ramping more aggressive process / new core.> Yes it could. I think the comfort factor with that kind of strategy will go up dramatically once AMD's penetration becomes more meaningful. Right now we are not quite there yet. Chuck