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

To: Pravin Kamdar who wrote (5260)	8/16/2000 5:34:44 PM
From: niceguy767	Respond to of 275872

Pravin: "At this time, the risk is that we will have insufficient capacity to meet demand for Flash memory products and underutilized capacity relative to demand for our microprocessor offerings." Comment: 10-Q's are notoriously conservative. The risk cited for flash is unequivocable inasmuch as demand exceeds capacity for the foreseeable future and that is an awesomely positive statement, given the flash negativity expressed by JJ at SSB...I can interpret the microprocessor statement either negatively or positively...i.e (a) neg. in that demand for microprocessors is not great enough to utilize existing capacity, or (b) pos. in that demand is stronger than AMD's current rate of ramp-up...Personally, the positive (b) interpretation makes much much more sense to me given AMD's recent guidance reinforcing the targets of 3.6 and 7.2 million Athys in Q3 and Q4 respectively... The recent price drop reflects AMD's strategy to gain a stranglehold on the top-end where competition is virtually non-existant at this time...Under 750MHz level is of secondary importance (not unimportant though) at the moment as INTC does appear to be currently competitive with its PWeeIII product up to 750 MHz...No doubt the Duron will provide a worthy competitor once unleashed on the marketplace...My guess is that AMD can ship all the product it can produce at 950 MHz and above (assuming no motherboard availability constraint) for the next several months, if not years, given AMD's apparent sizeable production lead in bin-splits and very significant price/performance advantage over competitors!!!