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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (123588)	9/9/2000 2:44:55 PM
From: tejek	Respond to of 1570958

I think you hit the nail on the head. Why are the estimates conservative? Because the analyst have no idea what will happen with AMD in 2001. The market pays for predictable results. AMD needs a track record, and as it achieves one, it's PE (and the estimates) will increase (though probably not explode). John, I agree that analysts do not know what will happen in 2001...but I think that is true for Intel as well as AMD. The 2001 EPS estimates for Intel are up only 9% YOY...not much better than AMD's 2%. And I think a case can be made that Intel's is up higher because it has more diverse sources of income and less PC chip dependent than AMD. And where's the guidance from AMD and Intel that would make the analysts more comfortable with going higher? ted