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

To: f.simons who wrote (6768)	8/28/2000 4:25:38 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

frank: "I guess a more interesting question is why you (and you are not alone) seem to believe that the viability of the two companies will be determined by who gets to some magic Mhz number first. It seems so clear to me that that is not the case. The next 6-12 months will tell the tale." It's not viability I'm talking about...it's relative pricing of these 2 major players...makes no sense from any slant to me that Intel trades at $40 more than AMD when Intel's earnings are stagnant to declining, especially when capital gains aren't included, while AMD's eps is accelerating (will be at least twice Intel's this year)and will likely continue to do so for the foreseeable future...My guess is that this $40 price gap is unsustainable for very long...At what price and when, AMD and Intel achieve market price parity is anyone's guess, but no matter which way I cut it, AMD/INTC price parity will be achieved before long...Possibly at $60, possibly at $90, maybe even $120, but it will happen before too long, imho!!! AMD's relative earnings growth is just too great to justify a $40 price gap much longer...

To: f.simons who wrote (6768)	8/28/2000 4:41:56 PM
From: that_crazy_doug	Respond to of 275872

<< I guess a more interesting question is why you (and you are not alone) seem to believe that the viability of the two companies will be determined by who gets to some magic Mhz number first. It seems so clear to me that that is not the case. The next 6-12 months will tell the tale. >> Whoever has the highest sweet spot will probably make the most money per share. They will likely have higher margins on chips, and they will likely increase market share over the coming year. Perhaps a bit oversimplified, but the basis of the Mhz sells theory. (at least in my book).