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

To: niceguy767 who wrote (5206)	8/16/2000 10:59:02 AM
From: AK2004	Read Replies (1) \| Respond to of 275872

Niceguy (attached is a semi report from Pru) true, but who am I to argue with Monty's charts. Regards -Albert 09:01am EDT 16-Aug-00 Prudential Securities (H.MOSESMANN 650-320-1631) ATML MCH MID-QUARTER UPDATE: SEMICONDUCTORS ....................................... The Semiconductor Cycle Is Alive and Well From our trip to Taiwan, South Korea and Japan last week, we have renewed conviction that technology demand and supply trends are quite favorable for semiconductor stocks. ASPs are increasing, wafer demand has accelerated in the last two weeks with capacity selling out for 2001, and inventories are low. Lead times continue to expand and it is becoming more common to find standard products on allocation. Our favorite cycle plays include: Atmel (ATML, Strong Buy, 32 5/8), Cypress (CY, Strong Buy, 43), Microchip (MCHP, Strong Buy, 69 3/16), Micron Technology (MU, Strong Buy/Select List, 86 «), and STMicroelectronics (STM, Strong Buy/Select List, 61 _). Strength in Key End Markets Demand appears to be shaping as seasonally strong for the PC end market, our favorite PC plays are AMD (Strong Buy, 64)and Intel (INTC, Strong Buy, 67 7/8). Intel and AMD are both ramping into volume their new processors to meet seasonal strong demand. We believe that AMD's recent Athlon price cuts and the steadily declining processor spot prices are indicative of steadily improving availability. However, in this capacity constrained environment, we believe that processor availability at the low end continues to be rather tight, for both Celerons and K6-2s. We continue to believe that the timely launch and ramp of Intel's high-profile P4 (formerly known as Willamette) will be critical and that Intel's decision to broaden its chipset roadmap to support non-Direct Rambus DRAM (DRDRAM) was wise given the cost of DRDRAM. .............................................. Capacity Is Tight - Wafer Allocation Moving Into 2001 Supply of silicon wafers is becoming a real issue. The major foundries of Taiwan, TSMC and UMC are both reserving 2001 allocations for their customers. This allocation process is quite complex, however ideal elements of the decision to get more allocation include: high proprietary content in the chip, customer history (sole source is ideal), and cash deposits. ...................................................