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

To: f.simons who wrote (4917)	8/14/2000 9:32:53 AM
From: that_crazy_doug	Read Replies (1) \| Respond to of 275872

<< C'mon, Doug. You know better than that. Up 100% from a very weak year. AMD stock had already been rewarded for those gains. I will quit talking about Intel's last five years if you-all will quit talking about YOY comparisons between Q2-99 and 00. Deal? >> Okay, forget YOY, would you consider 13% sequential growth to be slow? That's 60% yearly growth, which seems very good to me.

To: f.simons who wrote (4917)	8/14/2000 1:16:04 PM
From: Petz	Respond to of 275872

Frank, <C'mon, Doug, [AMD income] up 100% from a very weak year> Yes I suppose we should look at the 5 year record, then Intel will look peachy compared to AMD, right? Sales Intel AMD Q2 1995 3,894 626 Q2 2000 8,300 1,170 % Increase +113% +87% So far, so good. Now lets look at pre-tax operating income (profit) and at gross margin (profit/sales): Intel margin AMD margin Q2 1995 1,326 34% 126.9 20% Q2 2000 2,408 29% 250.2 21% % Increase +81.6% -15% +97.2% +5% Whoa, what's happening here? AMD actually has a better growth rate in profits for a five year period from Q2 1995 to Q2 2000. Intel's gross margin has been dropping and AMD's has been going up. If AMD meets analyst expectations for the current quarter, the five year sales growth rates for the two companies will be about equal, but AMD's 5-year profit growth will be *much better*. Petz